The key benchmark indices were trading near the flat line in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, fell 3.76 points or 0.01% at 52,478.95. The Nifty 50 index gained 2.70 points or 0.02% at 15,724.20.
Infosys (down 1.16%), HDFC Bank (down 0.54%) and Larsen & Toubro (L&T) (down 1.06%) were major drags.
The broader market was trading higher. The S&P BSE Mid-Cap index added 0.08%. The S&P BSE Small-Cap index rose 0.37%.
Buyers outpaced sellers. On the BSE, 1,684 shares rose and 1,412 shares fell. A total of 148 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,646.66 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,520.18 crore in the Indian equity market on 30 June 2021, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 18,22,07,431 with 39,47,099 deaths. India reported 5,23,257 active cases of COVID-19 infection and 3,99,459 deaths while 2,94,88,918 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India added 48,786 new cases of COVID-19 while the national recovery rate improved to 96.97%, according to the Union Health Ministry data updated on Thursday.
Cadila Healthcare said it has applied for Emergency Use Authorization (EUA) to the office of Drug Controller General of India (DCGI) for ZyCoV-D - its Plasmid DNA vaccine against COVID-19. The company conducted the largest clinical trial for its COVID-19 vaccine in India so far in over 50 centers.
ZyCoV-D is a plasmid DNA vaccine which when injected produces the spike protein of the SARS-CoV-2 virus and elicits an immune response mediated by the cellular and humoral arms of the human immune system, which play a vital role in protection from disease as well as viral clearance.
Economy:
The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) fell to 48.1 in June from 50.8 in May, slipped below the critical no-change mark of 50.0 for the first time since July 2020. The latest reading pointed to a renewed deterioration in the health of the sector that was, however, moderate.
India's eight infrastructure sectors grew 16.8% in May because of the low base of last year, while statewide lockdowns because of the second wave of the coronavirus pandemic meant the output actually contracted 3.7% from April. Coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity count among the core sectors, which constitute 40% of the Index of Industrial Production.
India's fiscal deficit at the end of May came in at 8.2% of the budgeted estimate for FY22 as against 59% in the same period last year, on the back of better revenues and lower subsidy pay out, according to official data released Wednesday. Fiscal deficit in April-May stood at Rs 1.23 lakh crore, data showed. The budget target set for fiscal deficit in FY2021-22 is Rs 11.40 lakh crore.
India's current account deficit (CAD) for the quarter ended March 2021 widened to 1% of GDP, or $8.1 billion, from 0.3% ($2.2 billion) in the preceding quarter on the back of a higher trade deficit. For the quarter ended March 2020, the current account was in a surplus of $600 million due to lower trade volumes.
The Reserve Bank of India (RBI) said that the CAD in Q4FY21 was primarily because of a higher trade deficit and lower net invisible receipts than in the corresponding period of the previous year.
For the full year FY21, the current account balance recorded a surplus of 0.9% of GDP as against a deficit of 0.9% in FY20 on the back of a sharp contraction in the trade deficit to $102.2 billion from $157.5 billion in FY20. This is the first time that the country has recorded an annual current account surplus in 17 years.
India's external debt surged by $11.5 billion year-on-year to $570 billion as of March-end 2021, according to the Reserve Bank of India data released on Wednesday. The external debt to GDP ratio rose to 21.1% as of March-end 2021 from 20.6% a year ago, the data on India's External Debt showed.
Gainers & Losers:
Bajaj Auto (up 2.27%), Hindalco Industries (up 1.65%), Tata Motors (up 1.53%), State Bank of India (SBI) (up 0.89%) and Hero MotoCorp (up 0.88%) were major gainers in Nifty 50 index.
Shree Cements (down 1.84%), Wipro (down 1.25%), Tech Mahindra (down 1.08%) and Ultratech Cement (down 1.01%) were major losers in Nifty 50 index.
Earnings Impact:
SeQuent Scientific slumped 7.96%. On a consolidated basis, SeQuent Scientific's net profit jumped 29.08% to Rs 23.52 crore on 20.37% rise in revenue from operations to Rs 361.82 crore in Q4 March 2021 over Q4 March 2020. Profit before tax surged 20.18% to Rs 29 crore in Q4 FY21 as against Rs 24.13 crore in Q4 FY20.
Consolidated operating EBITDA grew 19.5% to Rs 61.10 crore in Q4 FY21 as against Rs 51.10 crore in Q4 FY20. EBITDA margin stood at 16.9% during the quarter compared with 17% during the corresponding quarter last year. Profit margin was at 5.7% in Q4 FY21 as compared to 6.1% in Q4 FY20. Revenue from Formulations business jumped 29.6% to Rs 250.60 crore in Q4 March 2021 over Rs 193.40 crore in Q4 March 2020. Revenue from Active Pharmaceutical Ingredients (APIs) segment rose 3.8% to Rs 111.30 crore in Q4 FY21 from Rs 107.20 crore in Q4 FY20.
Rajesh Exports rose 0.84%. The company's consolidated net profit jumped 7.8% to Rs 292.76 crore on 35.7% rise in net sales to Rs 64,522.60 crore in Q4 March 2021 over Q4 March 2020. Profit before tax surged 13.1% to Rs 304.49 crore in Q4 FY21 as against Rs 269.27 crore in Q4 FY20. Consolidated EBIDTA for the quarter stood at Rs 327.08 crore. The order book position as on 31 March 2021 of the company was Rs 45273.23 crore.
Vodafone Idea tanked 8.74% after the company recorded a consolidated net loss of Rs 7,022.80 crore in Q4 FY21 as against a net loss of Rs 11,643.5 crore in Q4 FY20. Revenue declined 18.3% to Rs 9,607.6 crore in Q4 FY21 from Rs 11,754.2 crore in Q4 FY20. The company has registered a decline of 11.8% in revenue on a quarter-on-quarter (Q-o-Q) basis, out of which 9.6% was on account of abolishment of domestic IUC effective from 1 January 2021 and 2.2% was on account of lower number of days in the quarter. Average daily revenue, adjusted for IUC impact was flat Q-o-Q.
EBITDA, however, improved by 0.7% to Rs 4,408.7 crore in the fourth quarter from Rs 4,380.1 crore in the same period last year. EBITDA margin was at 45.9% as on 31 March 2021 as against 37.3% as on 31 March 2021. The fourth quarter had one-off of Rs 450 crore primarily in network and IT costs. Capex spend in Q4 FY21 was Rs 1540 crore as against Rs 1,820 crore in Q4 FY20 and Rs 970 crore in Q3 FY21. The company recorded a pre-tax loss of Rs 7,042.3 crore in Q4 FY21 compared with a pre-tax loss of Rs 11,742.6 crore in Q4 FY20.
Stocks in Spotlight:
Larsen & Toubro fell 1.06%. The construction arm of Larsen & Toubro (L&T) has secured 'significant' orders from prestigious clients for its various businesses in India. According the company's classification, the value of the 'significant' orders lies between Rs 1,000 to Rs 2,500 crore.
Ashok Leyland gained 0.41%. The commercial vehicle maker posted a 169% jump in total sales (domestic + exports) to 6,448 units in June 2021 from 2,394 units sold in June 2020. On a sequential basis, Ashok Leyland's total sales rose 101.5% to in June 2021 from 3,199 units sold in May 2021. Total domestic medium and heavy commercial vehicle (M&HCV) sales soared 313% year on year to 2,364 units in June 2021. Total domestic light commercial vehicle (LCV) sales jumped 124% to 3,487 units in June 2021 over June 2020.
Maruti Suzuki India added 0.76%. The car major recorded total sales of 1,47,368 vehicles in June 2021 as against sales of 57,428 vehicles registered in June 2020. The company had sold 46,555 vehicles in May 2021. The company recorded domestic sales (domestic + OEM) of 130,348 vehicles in June 2021. It has sold 53,139 vehicles in the same period last year. Maruti's total export sales were 17,020 units in June 2021 as against 4,289 units in June 2020. With this the company closed the first quarter of FY 21-22 with total sales of 3,53,614 units (2,97,118 units domestic, 10,977 units to other OEM and exports of 45,519 units).
Global Markets:
European shares advanced while Most Asian stocks declined on Thursday, 1 July 2021.
China's factory activity expanded at a softer pace in June. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) fell to 51.3 last month from May's 52, marking the 14th month of expansion.
Japanese big manufacturers' business confidence improved in the second quarter to hit a two-and-half-year high, a central bank survey showed. Service-sector sentiment also turned positive for the first time in five quarters, the Bank of Japan's (BOJ) Tankan survey showed.
In the US, the S&P 500 nabbed its fifth straight record closing high on Wednesday as investors shrugged off positive economic data and looking toward Friday's highly anticipated employment report.
U.S. private payrolls increased more than expected in June. Private payrolls increased by 692,000 jobs in June. Data for May was revised lower to show 886,000 jobs added instead of the initially reported 978,000.
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