In the broader market, the S&P BSE Mid-Cap index slipped 0.43% while the S&P BSE Small-Cap index was up 0.13%.
The market breadth was positive. On the BSE, 1352 shares rose and 1232 shares fell. A total of 148 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,013.66 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,415.54 crore in the Indian equity market on 11 August, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 20,292,486 with 741,380 deaths. India reported 6,43,948 active cases of COVID-19 infection and 46,091 deaths while 16,39,599 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
India's industrial output fell for the fourth straight month, led by weakness across most segments except consumer non-durable goods. The Index of Industrial Production contracted by 16.6% in June over last year, compared to a revised contraction of 34% in May and a record 57.6 per cent slide in April. In the April-June 2020 quarter, the index contracted by 35.9%.
India CPI numbers for July are due to be announced today. The domestic consumer prices in India increased 6.09% year-on-year (YoY) in June of 2020, compared with 6.27% in May 2020. The retail inflation in June had surpassed the Reserve Bank of India's (RBI) upper limit of 6%. The government has mandated the Indian central bank to keep inflation within the range of 4% with a margin of 2% on either side.
Earnings Today:
Aarti Industries (up 0.36%), Aavas Financiers (up 2.5%), Ashok Leyland (up 1.34%), Aster DM Healthcare (up 1.73%), Aurobindo Pharma (down 1.44%), Bharat Forge (up 1.22%), Brigade Enterprises (down 0.31%), Cholamandalam Financial (down 0.92%), Cummins India (up 0.2%), Thermax (up 0.34%), Graphite India (down 1.25%), Gulf Oil (up 6.24%), Kalpataru Power (up 1.21%), SH Kelkar (up 3.98%), NCC (down 0.95%), Natco Pharma (down 5.3%), MAS Financial (up 3.63%), Tata Power (up 0.29%) and Sundaram Fasteners (up 3.8%) are some of the companies that will announce their quarterly earnings today.
Earnings Impact:
Adani Ports and Special Economic Zone (APSEZ) spurted 2%. The company reported 26% decline in consolidated net profit to Rs 758 crore on a 18% fall in revenue to Rs 2,293 crore in Q1 FY21 over Q1 FY20. Cargo volumes fell 27% to 41.41 MMT (million metric tonne) in Q1 June 2020 compared to 56.75 MMT in Q1 June 2019. "Lockdown measures to tame the spread of COVID-19 resulted in lower import and export, impacting cargo throughput in first quarter of FY21. There has been a steady increase in cargo throughput across Ports from July 2020. During the month of July 2020, APSEZ handled cargo volume of 18.30 MMT, a growth of 6% on year on year basis and 31% over June 2020. This trend gives us confidence that worst is behind us and going forward cargo volume in FY21 is expected to stabilize", the company said in a statement. EBITDA shrunk 22% to Rs 1,438 crore in the June quarter from Rs 1,843 crore recorded in the same period last year. EBITDA margin was at 63% as on 30 June 2020 as against 66% as on 30 June 2019.
Metropolis Healthcare jumped 4.78%. The medical diagnostics company's consolidated net profit slumped 89.3% to Rs 2.88 crore on 29.6% drop in net sales to Rs 143.13 crore in Q1 June 2020 over Q1 June 2019. Metropolis Healthcare said it conducted 2.65 million tests from 1.37 million patient visits. Cost rationalization program initiated in April 2020 to reduce fixed costs by 9%, semi-variable cost by 12% and variable cost by 21%. Goal for second quarter is to scale up Non-COVID 19 tests and subsequent revenues. In June 2020, Metropolis Healthcare achieved 100% revenues (including COVID-19 testing) compared to June 2019. With improving Non-COVID 19 revenues and cost rationalization measures we have achieved near normal EBITDA margin of 25.2% for June 2020. EBITDA (before CSR and ESOP) dropped 76.61% to Rs 13 crore in Q1 FY21 as against Rs 55.60 crore in Q1 FY20. EBITDA margin (before CSR and ESOP) stood at 9.1% in Q1 FY21 as compared to 27.4% in Q1 FY20.
Rashtriya Chemicals & Fertilizers slumped 5%. The fertilizer maker's consolidated net profit surged 140.6% to Rs 19.20 crore on 32.7% decline in net sales to Rs 1621.05 crore in Q1 June 2020 over Q1 June 2019. For the quarter ended 30 June 2020, operations of the company were impacted due to the nationwide lockdown, which caused disruptions in the supply chain/movement of fertilizers. This has impacted its sales and results for the quarter ended 30 June 2020.
Prataap Snacks declined 3.86% after the company posted a consolidated net loss of Rs 5.96 crore in Q1 June 2020 as against a net profit of Rs 9.65 crore reported in Q1 June 2019. Consolidated net sales for Q1 June 2020 stood at Rs 194.45 crore, falling nearly 41% from Rs 329 crore in the same period last year. The revenue was impacted due to operating constraints on account of nationwide lockdown. Prataap Snacks registered a pre-tax loss of Rs 7.55 crore in quarter ending June 2020 as against pre-tax profit of Rs 12 crore in quarter ending June 2019. The company's posted an operating EBITDA of Rs 8.24 crore, translating to a margin of 4.2% which was impacted by operating deleverage.
Galaxy Surfactants tumbled 2.09%. The chemical maker posted a 7.5% rise in consolidated net profit to Rs 56.49 crore in Q1 FY21 as against Rs 52.55 crore in Q1 FY20. Net sales for Q1 FY21 stood at Rs 607.16 crore, an 8.7% decline compared with Rs 665 crore in Q1 FY20. The fall in revenue was on account of decline in specialty care sales as well as decline in fatty alcohol prices. Consolidated earnings before interest tax depreciation and amortization (EBITDA) fell 6.4% year on year to Rs 91.10 crore in Q1 FY21. EBITDA/MT remained stable at Rs 17,561 for Q1 FY21 as against Rs 17,779 in Q1 FY20.
KRBL dropped 2.82% after the company reported 7.63% fall in consolidated net profit to Rs 125.74 crore on 36.62% fall in total income to Rs 773.26 crore in Q1 June 2020 over Q1 June 2019. Consolidated profit before tax came at Rs 166.33 crore in April-June 2020, lower by 16.6% from Rs 199.42 crore posted in the corresponding period last year. Total tax expenses fell nearly 36% to Rs 40.59 crore in Q1 June 2020 over Q1 June 2019.
Global Markets:
European markets opened slightly higher while Asian markets traded in a positive territory on Wednesday. The Dow Jones Futures 30 were trading 237 points higher, indicating a decent opening in US markets today.
Investor sentiment was soured by lack of progress on talks over more economic aid for the US economy, coupled with worries over the coronavirus pandemic and tensions between the US and China, prompting investors to sell and lock in profits from recent gains.
US stocks stumbled in late trade Tuesday, giving up early gains to end lower as a selloff in tech shares continued. Investors continued to assess the outlook for the US economy amid a decline in the number of new coronavirus cases recorded and a lack of progress toward additional coronavirus aid from Washington.
Enthusiasm around Russia's COVID-19 vaccine efforts faded throughout the day amid international skepticism about whether the vaccine was effective and safe, with doubts cast on the approach on testing.
The most important factor that surprised investors and caught some off guard was a sharp rise in Treasury yields. The yield on the 10-year Treasury note reportedly rose 7 basis points to 0.64% as investors shunned safe-haven assets.
That triggered a wave of gold selling and consequently, gold retreated on Tuesday from record territory and posted its steepest daily dollar slide in more than seven years, with December futures tumbling 4.6% to settle at $1,946.30 an ounce.
The jump in yields was driven by plans of the US Treasury to sell a record amount of sovereign debt this week.
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