Benchmark indices ended higher on Monday, snapping their three-day losing streak. Buying was seen across the board with auto, metal and IT stocks making the biggest moves. Positive Asian cues cheered investors.
The Nifty managed to bounce back from its 20 days simple moving average placed at 11,182.67 and end at the highest point of the day.
As per provisional closing data, the barometer index, the S&P BSE Sensex gained 221.96 points or 0.59% at 38,099.30. The Nifty 50 index added 81 points or 0.72% at 11,259.40.
In the broader market, the S&P BSE Mid-Cap index rose 0.47%. The S&P BSE Small-Cap index added 0.91%.
Buyers outnumbered sellers. On the BSE, 1599 shares rose and 1128 shares fell. A total of 173 shares were unchanged.
Economy:
The Reserve Bank of India (RBI)'s central board approved the transfer of Rs 57,128 crore in surplus as dividend to the government for the accounting year 2019-20.
India's exports contracted for the fifth straight month in July, falling by 10.21% to $26.33 billion. In rupee terms, exports stood at Rs 1,77,305.79 crore in July 2020, down 2.14%, as per the data released by the Commerce and Industry Ministry on Friday. The imports too contracted by 28.40% to $28.47 billion in July from $39.76 billion in the same month last year. In terms of rupee, imports were down 21.96 per cent YoY to Rs Rs 2,13,499.56 crore. The trade deficit for July was $4.83 billion as against a surplus of $790 million in June and a deficit of $13.43 billion in the year ago period.
AGM Hearing:
The Supreme Court will hear the Adjusted Gross Revenue (AGR) case today, 17 August 2020. The apex court, in its hearing on 14 August, directed telcos under insolvency to submit details of spectrum sharing agreements that they have entered into. The court has also asked for the spectrum sharing agreement between Reliance Communications and Reliance Jio to be placed on record.
Earnings Today:
Can Fin Homes (down 1.33%) and Petronet LNG (down 2.44%) are some of the companies that will announce their quarterly earning today.
Earnings Impact:
Glenmark Pharmaceuticals rose 0.65% after the company's consolidated net profit surged to Rs 254.04 crore in Q1 June 2020 from Rs 109.28 crore in Q1 June 2019. The company's consolidated revenue increased by 0.94% to Rs 2,344.78 crore in the June quarter from Rs 2,322.87 crore in the corresponding period last fiscal. EBITDA (excluding other income) was at Rs 478.06 crore in the quarter ended 30 June 2020 as against Rs 341.91 crore in the previous corresponding quarter, registering an increase of 39.82%. Glenmark's India Business grew by 3.68% year-on-year (YoY) to Rs. 779.89 crore, Europe Business grew by 12.77% YoY to Rs 273.87 crore, US Business grew by 1.61% YoY to Rs 742.64 crore and the API Business grew by 1.83% YoY to Rs 234.83 crore during the quarter. However, during the same period, Glenmark's ROW Business experienced de-growth of 18.05% the revenue fell to 212.01 crore in Q1 FY21 over Q1 FY20.
Sun TV Network gained 6.9%. On a standalone basis, company's net profit declined 26% to Rs 282.8 crore on 44% drop in net sales to Rs 606.1 crore in Q1 June 2020 over Q1 June 2019. Revenues for the quarter dropped due to the absence of IPL and movie distribution. Sun TV's subscription revenues for the quarter ended 30 June 2020, grew by 18% year on year to Rs 442.25 crore. EBITDA for the Q1 June 2020 stood at Rs 416.49 crore, falling 39% from Rs 682.91 crore in the same period last year.
United Breweries rose 0.77%. The liquor maker reported consolidated net loss of Rs 114.40 crore in Q1 June 2020 as compared with net profit of Rs 164.62 crore in Q1 June 2019. Consolidated net sales slumped 75.2% to Rs 507.45 crore in Q1 June 2020 over Q1 June 2019. United Breweries said that the peak season was adversely impacted due to the pandemic, although there has been gradual business resumption since lockdown; the outlook continues to be volatile. United Breweries has actively managed to maintain costs and retain cash position to mitigate the impact of COVID-19. The company continues to be optimistic about the long term growth drivers of the industry and is committed to strengthen its market position while leveraging newly emerging opportunities such as home delivery, United Breweries said.
Stocks in Spotlight:
ICICI Bank fell 0.62%. The bank on Saturday (15 August 2020) announced that it raised approximately Rs 15,000 crore through qualified institutions placement (QIP) of 41.89 crore equity shares at Rs 358 each. The issue opened on 10 August 2020 and closed on 14 August 2020. "The proceeds of the issue will be used towards strengthening the capital adequacy ratio of the Bank, improving the Bank's competitive positioning and/ or general corporate requirements or any other purposes as may be permissible under the applicable law and approved by the Board of Directors of the Bank or its duly constituted committee, the private lender said in a statement.
PNB Housing Finance was up 0.8%. The board of directors of PNB Housing Finance is scheduled to meet on Wednesday, 19 August 2020 to consider fund raising by the company, by issue of equity shares and/or other securities through any permissible modes, subject to such approvals as may be required.
Lupin tumbled 1.55%. The drug major's U.S. based wholly owned subsidiary announced results from its Phase 3 clinical trial to assess efficacy and safety of single-dose Solosec in female patients with trichomoniasis. The trial results showed a clinically and statistically significant response rate, or microbiological cure, in patients treated with Solosec as compared to placebo. The efficacy results of the Phase 3 study are quite encouraging and could support the utility of Solosec in clinical practice as a treatment option for trichomoniasis once the new indication is approved, said Christina Muzny, M.D., MSPH, University of Alabama at Birmingham.
Global Markets:
The Dow Jones 30 Futures were up 85 points, indicating a decent opening in US markets today.
European markets were mixed while most Asian markets ended higher on Monday. Tensions between the US and China continue to weigh on investor sentiment. The market in South Korea is closed for a holiday.
China's central bank on Monday rolled over maturing medium-term loans while keeping borrowing costs unchanged for the fourth straight month. The People's Bank of China (PBOC) said in a statement it was keeping the rate on 700 billion yuan ($100.74 billion) worth of one-year medium-term lending facility (MLF) loans to financial institutions steady at 2.95% from previous operations.
Japan was hit by its biggest economic contraction on record in the second quarter as the coronavirus pandemic crushed business and consumer spending. Gross domestic product (GDP) shrank an annualised 27.8% in April-June, government data showed on Monday.
In US, stocks ended on a mixed note on Friday as data on the U.S. economy added to uncertainty over the recovery.
Meanwhile, a planned U.S.-China trade deal review initially set for Saturday was reportedly delayed with no new date agreed upon. The delay was due to scheduling conflicts as well as to give time for more Chinese purchases of U.S. exports.
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