In the broader market, the S&P BSE Mid-Cap index rose 0.8% while the S&P BSE Small-Cap index gained 0.95%.
The market breadth is strong. On the BSE, 1484 shares rose and 1044 shares fell. A total of 181 shares were unchanged. In Nifty 50 index, 28 stocks advanced while 22 stocks declined.
Foreign portfolio investors (FPIs) bought shares worth Rs 697.08 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 209.42 crore in the Indian equity market on 17 July, provisional data showed.
COVID-19 Update:
India reported 3,90,459 active cases of COVID-19 infection and 27,497 deaths while 7,00,086 patients have been cured, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 14,508,352 with 606,195 deaths so far, according to data from Johns Hopkins University.
Results Today:
ACC (up 0.79%), SBI Cards & Payment Services (down 1.65%), Bombay Dyeing (up 1.68%), Den Networks (up 7.06%) and Swaraj Engines (up 7.45%) will announce their quarterly earnings today.
Earnings Impact:
HDFC Bank rose 3.87%. The scrip jumped 4.87% to hit the day's high at Rs 1152.65 in early trade today. The private lender's net profit rose 19.58% to Rs 6,658.62 crore on 6.46% increase in total income to Rs 34,453.28 crore in Q1 June 2020 over Q1 June 2019. Profit was aided by lower tax expense, which declined 23.14% to Rs 2,279.13 crore in Q1 FY21 compared with Rs 2,965.42 crore in Q1 FY20. Net interest income (NII) for the quarter ended 30 June 2020 jumped 17.8% to Rs 15,665.4 crore as compared to Rs 13,294.3 crore for the quarter ended 30 June 2019. Operating expenses were lower primarily due to lower loan origination and sales volumes. The bank's provisions and contingencies jumped 48.89% to Rs 3,891.52 crore in Q1 June 2020 over Rs 2,613.66 crore in Q1 June 2019. The ratio of gross NPAs to gross advances stood at 1.36% as on 30 June 2020 as against 1.26% as on 31 March 2020 and 1.40% as on 30 June 2019. The ratio of net NPAs to net advances stood at 0.33% in Q1 FY21 as against 0.36% in Q4 FY20 and 0.43% in Q1 FY20.
Mahindra & Mahindra Financial Services jumped 8.78% after the firm reported strong financial performance in the June quarter. The counter registered a trading volume of 52.03 lakh shares, a 3.73 fold rise over two-week average daily volume of 13.94 lakh shares. The NBFC posted a 298.41% jump in consolidated net profit to Rs 432.12 crore in Q1 June 2020 from Rs 108.46 crore reported in Q1 June 2019. Total income rose 16% year on year to Rs 3310.65 crore in Q1 June 2020. The earnings includes an exceptional item in the nature of capital gain of Rs 229 crore on the basis of fair valuation of retained interest of 51% post stake dilution of 49% in its subsidiaries, Mahindra Asset Management Company (MAMCPL) and Mahindra Trustee Company (MTCPL), vide joint venture agreement with Manulife Asset Management (Singapore). The NBFC's provisions and write offs stood at Rs 948.8 crore in Q1 June 2020, jumping 40% from Rs 676.9 crore in the same period last year. M&M Finance said an additional charge of Rs 664.5 crore has been added to provisions on account of COVID-19.
ICICI Lombard General Insurance Company gained 2.19% after the company reported 28.5% increase in net profit to Rs 398.1 crore in Q1 June 2020 compared with Rs 309.81 crore in Q1 June 2019. Total income rose nearly 2% to Rs 2844.17 crore in Q1 FY21 compared with Rs 2791.08 crore in Q1 FY20. Gross Direct Premium Income (GDPI) of the company stood at Rs 3302 crore in Q1 June 2021 compared to Rs 3487 crore in Q1 June 2019, a de-growth of 5.3%. Excluding crop segment, GDPI of the company decreased to Rs 3274 crore in Q1 June 2020 compared to Rs 3488 crore in Q1 June 2019, registering a de-growth of 6.2%. The degrowth across industry was mainly due to Covid-19 pandemic. The insurance company's Return on Average Equity (ROAE) was 25.1% in Q1 FY21 compared to 23% in Q1 FY20. Solvency ratio was 2.50x at the end of 30 June 2020 as against 2.17x at 31 March 2020 and higher than the minimum regulatory requirement of 1.50x.
Trident fell 3.14%. The company's consolidated net profit tumbled 91.7% to Rs 10.11 crore in Q1 June 2020 from Rs 122.43 crore in Q1 June 2019. Revenue from operation declined 46% in the June quarter to Rs 708.54 crore from Rs 1312.15 crore in the corresponding perio last year. The textiles segment revenue stood at Rs 586.30 crore (down 44.9% YoY) and paper & chemical business segment revenue came in at Rs 122.31 crore (down 50.7% YoY) during the quarter.
Banco Products (India) rose 0.66%. The company reported a 41.31% fall in consolidated net profit to Rs 17.56 crore on a 31.37% fall in total income to Rs 275.60 crore in Q1 June 2020 over Q1 June 2019. The announcement was made after market hours on Friday, 17 July 2020. Shares of Banco Products (India) settled 1.46% higher at Rs 83.50 on Friday.
Global Markets:
European markets opened lower while Asian shares were trading in a negative zone on Monday. The Dow Jones Futures were trading 159 points lower, indicating a weak start in US markets today.
Japan's exports dived 26.2% in June from a year earlier. Imports fell 14.4%, compared with expectations of a 16.8% decline.
China kept its benchmark lending rate steady for the third straight month on Monday. The one-year loan prime rate was kept unchanged at 3.85%, while the five-year remained at 4.65%.
European Union leaders on Friday reportedly kicked off a two-day summit aimed at reaching an agreement on a 750 billion euros recovery fund. However, the leaders have failed to agree on a massive stimulus fund, but have extended their summit for another day to try and overcome their differences.
US stocks closed Friday mostly along the flatline as investors reacted to disappointing consumer sentiment data and gauged the potential for additional fiscal stimulus in the U.S. and Europe while COVID-19 cases continue to climb.
Stocks gave up early gains to turn mixed after a US consumer sentiment index fell to 73.20 from 78.10 last month and down from 98.40 one year ago.
The continued rise in COVID-19 cases in the U.S. has been partly offset by optimism over scope for additional fiscal stimulus. The White House and lawmakers face increasing pressure to come up with an additional fiscal stimulus plan ahead of the expiration of supplemental unemployment benefits at the end of July.
The Federal Reserve on Friday announced it had expanded its Main Street Lending Program to include nonprofit organizations.
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