The key equity indices ended with minor cuts on Wednesday. After recording heavy losses in the afternoon trade, the benchmarks sharply pared losses in late trade. PSU banks and metal shares rallied while IT and FMCG shares declined.
As per provisional closing data, the barometer index, the S&P BSE Sensex, declined 85.40 points or 0.16% to 51,849.48. The Nifty 50 index gained 1.35 points or 0.01% at 15,576.20.
The Nifty regained 15,500 level in late trade after hitting the day's low of 15,459.85 in afternoon trade.
The broader market was trading higher. The S&P BSE Mid-Cap index rose 1.75%. The S&P BSE Small-Cap index gained 1.29%.
Buyers outpaced sellers. On the BSE, 2153 shares rose and 964 shares fell. A total of 167 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 17,11,88,807 with 35,65,284 deaths. India reported 17,93,645 active cases of COVID-19 infection and 3,35,102 deaths while 2,61,79,085 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
After reporting its lowest daily rise in new COVID-19 cases since 8 April 2021, India reported a slight increase in cases on Wednesday. The country reported 1,32,788 new COVID-19 cases and 3,207 deaths in the last 24 hours.
Buzzing Index:
The Nifty PSU Bank index rose 2.96% to 2,483.90. The index declined 1.26% in the past two sessions.
Central Bank of India (up 9.97%), Bank of Maharashtra (up 8.67%), Indian Overseas Bank (up 5.71%), Punjab & Sind Bank (up 5.32%), Punjab National Bank (up 5.28%), Indian Bank (up 5.26%), Union Bank of India (up 3.06%), Canara Bank (up 2.77%), Bank of India (up 2.56%), Bank Of Baroda (up 2.33%), UCO Bank (up 1.52%), Jammu and Kashmir Bank (up 1.38%) and SBI (up 1.08%) advanced.
Earning Impact:
Motherson Sumi Systems surged 14.70% to Rs 272.30. The company's consolidated net profit surged 290% to Rs 713.62 crore in Q4 FY21 from Rs 183.38 crore in Q4 FY20. Total revenue from operations increased 17.58% year-on-year (YoY) to Rs 16,971.91 crore during the quarter.
Motherson Sumi said that consolidated revenues in Q4FY21 were more than pre-COVID levels as industrial activity picked up globally. This was despite multiple headwinds such as chip shortage, higher commodity costs etc. the company sustained profitability.
The company said that improved profitability and realization of engineering revenues helped free cash generation, leading to lowest ever debt/EBITDA ratio. It further said that Moody's had upgraded outlook while maintaining rating at Ba1. It further said that production shutdowns (India) and semi-conductor shortages globally likely to be headwinds for OEM production in the near term.
ITC fell 2.90% to Rs 208.95. The tobacco major's standalone net profit declined 1.3% to Rs 3,748.41 crore on 22.7% jump in net sales to Rs 13,161.11 crore in Q4 FY21 over Q4 FY20.
EBITDA grew 7.4% year on year to Rs 4,473 crore in Q4 FY21 over Q4 FY20. The company said strong sequential recovery momentum continued.
Total FMCG segment revenue rose 14.8% to Rs 9547 crore during Q4 FY21 over Q4 FY20. In the FMCG segment, cigarettes revenue increased 14.2% YoY to Rs 5860 crore while the revenue from other FMCG segment fell 15.8% YoY to Rs 3688 crore in Q4 FY21 over Q4 FY20.
Hotel business revenue stood at Rs 288 crore (down 38.2% YoY), agri-business revenue was at Rs 3,369 crore (up 78.5% YoY) and paperboards, paper & packaging revenues were at Rs 1,656 crore (up 13.5% YoY) in the fourth quarter.
The company has recommended a final dividend of Rs 5.75 per share for the financial year ended 31 March 2021. The company has fixed 11 June 2021 as the record date for the payment of dividend.
Gujarat Gas jumped 5.15% to Rs 568. The city gas distributor reported 42.3% rise in standalone net profit to Rs 349.93 crore on a 28.6% increase in net sales to Rs 3,428.92 crore in Q4 FY21 over Q4 FY20.
The company's average gas sales volume for the quarter was at 12.13 million metric standard cubic meter per day (mmscmd), up by 22% compared to corresponding quarter previous year. In industrial and CNG category, the gas sales volume is up by 24% and 16% respectively, compared to corresponding quarter previous year.
The restrictions imposed to curb the outbreak of recent COVID-19 wave had an impact in the natural gas demand mainly from CNG, industrial and commercial categories. As restrictions are being lifted gradually in many of company's operating areas, natural gas demand is likely to improve. The company's gas sales volume till date in the FY22 stands close to 10 mmscmd as against average gas sales of 9.39 mmscmd in FY21.
Separately, the company's board of directors has approved the acquisition of city gas distribution business for Amritsar and Bhatinda geographical areas from Gujarat State Petronet for Rs 163.31 crore. The acquisition is expected to be completed within 45-60 days.
Emami Paper Mills hit an upper circuit of 20% at Rs 152.40 after the company's standalone net profit stood at Rs 47.28 crore in Q4 FY21 compared to a net loss of Rs 31.05 crore in Q4 FY20. Net sales jumped 9.8% YoY to Rs 411.38 crore in Q4 FY21.
Stock in Spotlight:
Hero MotoCorp shed 0.05% at Rs 2975. The two-wheeler major's total two-wheeler sales increased 62.44% to 1,83,044 units in May 2021 as against 1,12,682 units in May 2020. On a sequential basis, the company's total sales declined 50.83% in May 2021 compared with 372,285 units sold in April 2021.
Eicher Motors added 0.47% to Rs 2678.05. Total Royal Enfield motorcycle sales jumped 43% to to 27,294 units in May 2021 as against 19,113 units sold in May 2020. On a sequential basis, total motorcycle sales dropped 49% in May 2021 as against 53,298 units in April 2021.
NMDC rose 1.19% to Rs 183.50. The state-owned miner's iron ore production climbed 21.83% to 2.79 million tonnes (MT) while iron ore sales jumped 29.41% to 3.30 million tonnes (MT) in May 2021 over May 2020.
Adani Ports and Special Economic Zone (APSEZ) rose 1.94% to Rs 813.60. The company said it handled cargo volume of 25.65 MMT in May 2021, registering a growth of 79% on year on year basis. In the container segment, APSEZ handled container volume of 0.72 MN Twenty-foot Equivalent Units (TEUs) last month, registering a growth of 67% on a YoY basis. Mundra port handled container volume jumped 61% YoY to 0.56 MN TEUs in May 2021.
Sun Pharmaceutical Industries rose 0.93% to Rs 677.50. The company said that one of its wholly owned subsidiary has entered into a license agreement with Ferring Pharmaceuticals, a subsidiary of Switzerland-based biopharmaceuticals MNC Ferring Pharmaceuticals, to commercialize a room temperature stable (RTS) formulation of obstetric drug, CARITEC (Carbetocin RTS) in India. CARITEC is indicated for the prevention of excessive bleeding in women after vaginal or caesarean child birth. The condition is commonly known as post-partum haemorrhage (PPH).
Lupin added 2.81% to Rs 1242.65. The company said that the US FDA has accepted the biologics license application (BLA) for its proposed biosimilar to Neulasta (pegfilgrastim) through a filing using the 351(k) pathway. Pegfilgrastim has estimated annual sales of $3.66 billion in the U.S. (IQVIA MAT December 2020).
Global Markets:
European shares were trading higher while most Asian stocks ended higher on Wednesday.
South Korea's consumer inflation accelerated to a more than nine-year high in May. Consumer prices rose 2.6% in May from a year earlier, government data showed on Wednesday, logging the fastest growth since April 2012. It grew 2.3% in April.
U.S. stocks finished Tuesday almost flat as optimism about the economic reopening met lingering angst about inflation and price pressure.
Investors began the first week of June on a high note as COVID-19 cases continue to decline and vaccinations rise in the U.S. In a major milestone, more than half the U.S. population has received at least one dose of a COVID-19 vaccination, according to data posted by the Centers for Disease Control and Prevention.
Growth in U.S. manufacturing picked up in May. The Institute for Supply Management, a trade group of purchasing managers, said Tuesday that its index of manufacturing activity rose in May to a reading of 61.2 in May from 60.7 in April.
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