Key indices traded with small losses in afternoon trade. The Nifty hovered around the crucial 11,300 mark. Indices witnessed volatility on account of weekly index options expiry.
At 13:22 IST, the barometer index, the S&P BSE Sensex, fell 71.23 points or 0.19% at 38,298.88. The Nifty 50 index was down 11.6 points or 0.1% at 11,296.60.
The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index gained 1.3% while the S&P BSE Small-Cap index rose 0.76%.
The market breadth was positive. On the BSE, 1454 shares rose and 1114 shares fell. A total of 148 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 351.15 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 939.67 crore in the Indian equity market on 12 August 2020, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 20,634,064 with 749,424 deaths. India reported 6,53,622 active cases of COVID-19 infection and 47,033 deaths while 16,95,982 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Earnings Today:
Among Nifty companies, Hero MotoCorp (down 0.05%), GAIL (India) (up 0.66%), BPCL (up 0.05%), Grasim (up 0.34%), Eicher Motors (down 1.42%) and Tata Steel (down 0.94%) will announce their quarterly earnings today.
APL Apollo (up 1.38%), Balkrishna Industries (up 0.19%), City Union Bank (down 0.47%), DCM Shriram (down 0.38%), Engineers India (up 0.76%), Godrej Industries (down 0.7%), Kaveri Seed (up 1.29%), Praj Industries (up 2.32%), Prestige Estates (up 0.02%), Shankara Building Products (up 0.18%), Shriram Transport Finance (up 3%) and Trent (up 2.5%) are some of the other companies that will announce their quarterly earnings today.
Earnings Impact:
Aurobindo Pharma fell 5.54%. The pharma company's consolidated net profit jumped 22.8% to Rs 780.68 crore on 8.9% increase in net sales to Rs 5835.23 crore in Q1 June 2020 over Q1 June 2019. EBITDA margin marginally improved to 21.2% in Q1 June 2020 from 21.1% from Q1 June 2019. US formulation revenue stood at Rs 3,107.1 crore in Q1 June 2020, registering a growth of 15.6% from Rs 2,688.4 crore in Q1 June 2019. Europe formulation revenue came at Rs 1,322.2 crore, a decline of 5% against Q1 last year. Aurobindo's Growth Markets revenue declined by 7.6% year on year to Rs 289.6 crore. Aurobindo's research & development (R&D) spend at stood at Rs 254.5 crore in Q1 June 2020 which 4.3% of revenues. The company received final approval for 10 ANDAs from USFDA in quarter ending June 2020.
Ashok Leyland jumped 11.77%. The commercial vehicle manufacturer posted a consolidated net loss of Rs 389 crore in Q1 June 2020 compared with net profit of Rs 275 crore reported in Q1 June 2019. Consolidated income from operations for quarter ending June 2020 stood at Rs 1480 crore, tumbling 77% from Rs 6514.73 crore in the same period last year. The commercial vehicle manufacturer said that a drop in revenue was due to the lock down on account of the COVID-19 pandemic. With virtually no operations or revenues in the first part of this quarter owing to the lock down, the demand is seen to be gradually opening up as the lock down is being eased.
Tata Power surged 8.59% after consolidated net profit jumped 10.3% to Rs 268.10 crore on 16.9% fall in net sales to Rs 6,452.99 crore in Q1 June 2020 over Q1 June 2019. Revenues dropped mainly due to lower power demand, delay in solar EPC businesses on account of COVID-19 and lower coal FOB prices. However, the company maintained stable performance despite lower profits from solar EPC businesses mainly on account of lower financing cost and stable performance across clusters. The company reported a strong cash generation due to strong collection and tighter control over working capital. The Q1 FY21 consolidated EBITDA stood at Rs 2,037 crore including renewable EBITDA of Rs 588 crore as compared to Rs 663 crore in Q1 FY20 mainly due to delay in the solar EPC projects due to COVID-19. During the quarter, Tata Power won new renewables bids totalling 220 MW (megawatt). The company's solar EPC order book stands at Rs 8,700 crore.
Aster DM Healthcare slipped 3.88% after consolidated net loss of Rs 88.59 crore in Q1 June 2020 compared with net profit of Rs 10.05 crore in Q1 June 2019. Net sales skid 13.2% to Rs 1,760.63 crore in Q1 June 2020 as against Rs 2,028.59 crore in Q1 June 2019. EBITDA margin stood at 8.1% in Q1 FY21 as compared to 11% in Q1 FY20.
Kalpataru Power Transmission declined 1.76% to Rs 245.70 after the company posted a 55% fall in consolidated net profit to Rs 45 crore in Q1 June 2020 as compared to Rs 100 crore in Q1 June 2019. Consolidated net sales for Q1 June 2020 stood at Rs 2330 crore, falling nearly 16% from Rs 2771 crore in Q1 June 2019. The company said revenue and profitability growth impacted by lockdown and restrictions. EBITDA margin declined by 140 basis points to 11.5% in Q1 June 2020 from 12.9% in Q1 June 2019. The company's order book as of 30 June 2020 stood at Rs 24,934 crore out of which 73% is domestic order while 27% is international order.
NCC fell 0.80% to Rs 30.90. The construction company's consolidated net profit slumped 76.5% to Rs 17.01 crore on 44.7% decline in net sales to Rs 1,297.60 crore in Q1 June 2020 over Q1 June 2019. In the first quarter of 2020-21, the company has secured orders aggregating to Rs 2592 crore and the order book stood at Rs 27916 crore as at the end of the first quarter.
Global Markets:
European markets opened lower while Asian markets were trading higher on Thursday. The media reported that China's banks are expected to dispose of 3.4 trillion yuan ($489.9 billion) of bad loans this year, in a bid to contain financial risks amid a weakened economy.
The US stock market finished higher on Wednesday, 12 August 2020, as investors chased for riskier assets amid stronger-than-expected economic data and some signs of a slowdown in the spread of the coronavirus pandemic cases in the US and optimism over efforts to produce a vaccine.
Markets appeared to have little reaction to presumptive Democratic presidential nominee Joe Biden's pick of California Sen. Kamala Harris as his running mate, the first Black American woman and the first person of Indian decent to appear on the ticket of a major national party.
Meanwhile, US Treasury Secretary Steven Mnuchin said the White House and top Democrats in Congress may not be able to reach a deal on coronavirus aid, marking a fifth day without talks, as the stalemate blocked relief to tens of millions of Americans.
US consumer prices climbed by 0.6% in July, according to a report released by the Labor Department on Wednesday. The stronger than expected consumer price growth was partly due to a continued spike in energy prices. However, the jump in energy prices was partly offset by a pullback in food prices.
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