Equity indices ended with small gains on Monday, supported by firmness in banks stocks. The Nifty closed below the 15,200 mark after trading above that level for most part of the session. The moderation in daily new COVID-19 cases in India improved risk sentiments. Barring FMCG and metal, all the sectoral indices on the NSE ended in the green.
The barometer index, the S&P BSE Sensex, rose 111.42 points or 0.22% at 50,651.90. The Nifty 50 index gained 22.40 points or 0.15% at 15,197.70.
State Bank of India (up 2.73%), Larsen & Toubro (up 1.74%) and Axis Bank (up 1.40%) supported the indices.
The broader market outperformed the benchmark indices. The BSE Mid-Cap index added 0.86% and the BSE Small-Cap index rose 0.70%.
The market breadth was strong. On the BSE, 1967 shares rose and 1250 shares fell. A total of 169 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 16,71,79,637 with 34,63,894 deaths. India reported 27,20,716 active cases of COVID-19 infection and 3,03,720 deaths while 2,37,28,011 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Lockdown was extended on Sunday in Delhi, Haryana, Rajasthan and Puducherry, with many states already imposing COVID-induced restrictions till May-end to rein in the spread of infection. Delhi chief minister Arvind Kejriwal announced that the ongoing lockdown in the national capital will continue for another week and said the process of "unlock" will start from 31 May 2021 in a phased manner if the number of COVID-19 cases continues to decline.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 5.972% as compared with 5.977% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 72.9650, compared with its close of 72.83 during the previous trading session.
MCX Gold futures for 4 June 2021 settlement rose 0.28% to Rs 48,538.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.14% to 89.89.
In the commodities market, Brent crude for July 2021 settlement rose $1.24 at $67.68 a barrel. The contract rose $1.33, or 2.04% to settle at $66.44 a barrel in the previous trading session.
Foreign Markets:
The US Dow Jones futures were up 126.50 points, indicating a positive opening in the US market today.
Shares in Europe and Asia advanced on Monday. Investors anxiously awaited a key read on U.S. inflation this week for guidance on monetary policy.
In Europe, markets in Germany, Switzerland, Denmark, Norway, Belgium and Austria were closed for the Whit Monday public holiday.
In US, the Dow Jones Industrial Average closed higher Friday, while other major benchmarks slipped on concerns about Federal Reserve policy in the face of rising inflation pressures.
Helping sentiment Friday was a gauge for U.S. manufacturing activity that surged to a record high this month. The IHS Markit Flash U.S. Manufacturing Purchasing Managers' Index jumped to an all-time high of 61.5 in May from 60.5 in April.
However, housing data was soft. Existing-home sales fell 2.7% in April to a seasonally adjusted annual rate of 5.85 million annual rate, according to the National Association of Realtors.
Buzzing Indian Segment:
The Nifty Media index rose 1.20% to 1,687.55. The index added 2.20% in two sessions.
TV Today Network (up 8.19%), Jagran Prakashan (up 6.80%), Zee Entertainment (up 3.62%), D B Corp (up 3.48%) and Inox Leisure (up 1.57%) advanced.
Music Broadcast fell 0.43% to Rs 23.30. As per the bulk deal data on the NSE, Marcellus Investment Managers sold 31,29,319 equity shares, or 0.91% equity, at Rs 23.14 per share of Music Broadcast on Friday, 21 May 2021. Saurabh Mukherjea is the founder and chief investment officer of Marcellus Investment Managers.
Sensex Rejig:
Tata Steel (down 1.86%) will replace ONGC (rose 0.27%) in the 30-share benchmark S&P BSE Sensex effective Monday, 21 June 2021.
Earnings Impact:
Birlasoft spurted 11.32%. On a consolidated basis, the company's net profit rose 43.3% to Rs 98.98 crore on 0.5% fall in net sales to Rs 902.86 crore in Q4 March 2021 over Q4 March 2020. Profit before tax grew 23.4% to Rs 136.80 crore in Q4 FY21 as against Rs 110.86 crore in Q4 FY20. EBITDA stood at Rs 152.40 crore, up 5.5% QoQ & 30.5% YoY. EBITDA margin was at 16.9%, up 401 bps YoY.
In US$ terms, revenue stood at $123.3 million, up 3.2% QoQ. The company signed deals of total contract value (TCV) $326 million during the quarter. It signed deals of TCV $888 million during the year. TCV new deal wins of $429 million and renewals of $459 million for FY21.
JSW Steel fell 2.35%. On a consolidated basis, the steel maker reported a net profit of Rs 4,191 crore in Q4 FY21, steeply higher than net profit of Rs 188 crore in Q4 FY20. Revenue from operations increased 50.6% year-on-year (YoY) to Rs 26,934 crore during the quarter. Operating EBITDA surged to Rs 8,440 crore in Q4 FY21 from Rs 2,975 crore in Q4 FY20. Profit before tax in Q4 FY21 stood at Rs 6,272 crore, steeply higher than Rs 119 crore in Q4 FY20. The company's consolidated net gearing (net debt to equity) stood at 1.14x as on 31 March 2021 as against 1.48x as on 31 March 2020. Net debt to EBITDA stood at 2.61x as on 31 March 2021 as against 4.50x as on 31 March 2020. The company's debt has come down by Rs 858 crore even after spending on capex expenditure/ acquisitions aggregating to around Rs 15,000 crore during FY2021.
Godrej Industries gained 0.38%. The company reported a consolidated net loss of Rs 92.22 crore in Q4 FY21 as against a net profit of Rs 103.39 crore in Q4 FY20. Net sales during the quarter increased by 16.3% year-on-year (Y-o-Y) to Rs 2,610.69 crore. Total expenditure declined by 10% to Rs 2,626.66 crore in Q4 FY21 over Q4 FY20. Interest outgo increased by 6.1% to Rs 124.38 crore while depreciation costs were higher by 2.7% to Rs 62.76 crore in the fourth quarter compared with the same period last year. Profit before tax in Q4 FY21 stood at Rs 6.21 crore, down 97% from Rs 210.46 crore in Q4 FY20. Current tax expense jumped 14.4% Y-o-Y to Rs 57.39 crore in the fourth quarter.
Multi Exchange Commodity of India (MCX) declined 2.35% after the company's consolidated net profit tumbled 41.3% to Rs 38.44 crore on 13.6% decline in net sales to Rs 96.97 crore in Q4 March 2021 over Q4 March 2020. Profit before tax (PBT) dropped 23.4% to Rs 49.47 crore in Q4 FY21 as against Rs 64.58 crore in Q4 FY20. The EBITDA for the quarter ended 31 March 2021 decreased by 21% to Rs 55.73 crore from Rs 70.35 crore over the corresponding quarter ended 31 March 2020. For the quarter ended 31 March 2021, the EBITDA margin was 51% and PAT margin was 35%. The average daily turnover (ADT) in commodity futures (including index futures) on the exchange decreased by 13% to Rs 31,823 crore in Q4 FY 2021 from Rs 36,626 crore in the corresponding quarter of Q4 FY2020.
Shoppers Stop soared 5.26%. On a consolidated basis, the company's net loss stood at Rs 24.10 crore in Q4 FY21 compared with net loss of Rs 127.22 crore in Q4 FY20. Net sales fell 6.1% to Rs 680.46 crore in Q4 FY21 as against Rs 724.38 crore in Q4 FY20. Pre-tax loss stood at Rs 24.24 crore in Q4 FY21 as against pre-tax loss of Rs 151.80 crore in Q4 FY20. The business rapidly recovered from the pandemic in Q4. The recovery in footfalls and sales had begun in Q3 vs preceding quarters and it continued in Q4. For the quarter, the firm had 90% of FY20 sales, the strongest recovery in the last 4 quarters. However, with the pandemic in India, taking a severe turn in the second half of March, the year has ended on a sombre note.
CCL Products (India) surged 5.03% after the company's consolidated net profit jumped 16.6% to Rs 49.20 crore on 25.3% rise in net sales to Rs 331.58 crore in Q4 March 2021 over Q4 March 2020. Profit before tax grew 24.5% to Rs 71.78 crore in Q4 FY21 as against Rs 57.67 crore in Q4 FY20. Raw material cost declined 31% to Rs 95.52 crore in Q4 FY21 over Q4 FY20.
Dr Lal PathLabs declined 1.78%. The healthcare firm reported 161% jump in consolidated net profit to Rs 85.10 crore in Q4 FY21 as against Rs 32.6 crore in Q4 FY20. Revenue rose 42.9% year-on-year (Y-o-Y) to Rs 431 crore during the quarter. The company's non-COVID business grew at a growth rate of 26.8% Y-o-Y in Q4 FY21. Normalised EBITDA (after adjustment for stock-based compensation & CSR cost) for Q4 FY21 was at Rs 129.50 crore, up by 101.7% from Rs 64.20 crore in the same quarter last year. Normalised EBITDA margin was at 30% as on 31 March 2021 as against 21.3% as on 31 March 2020. Profit before tax in the fourth quarter stood at Rs 110.80 crore, up by 144.1% from Rs 45.40 crore in the same period last year.
Container Corporation of India soared 8.20%. On a consolidated basis, Container Corporation of India (CONCOR)'s net profit slumped 94.1% to Rs 18.58 crore on 23.5% increase in net sales to Rs 1,956.69 crore in Q4 March 2021 over Q4 March 2020. Profit before tax (after exceptional items) tumbled 90.4% to Rs 39.33 crore in Q4 FY21 as against Rs 410.88 crore in Q4 FY20.
Stocks in Spotlight:
Cipla added 0.42%. The drug major will market Roche's antibody cocktail in India. The antibody cocktail (casirivimab and imdevimab) is indicated for restricted use in emergency situation for the treatment of mild to moderate COVID-19 in patients who are at high risk of severe COVID-19.
Cadila Healthcare advanced 1.42% after the pharmaceutical major announced the launch of Trastuzumab Emtansine, the first Antibody Drug Conjugate (ADC) biosimilar for treating both early and advanced HER2 positive breast cancer. The company will market the drug under the brand name Ujvira. HER2 positive breast cancer is considered an aggressive form and constitutes 20 to 25% of all breast cancers. The drug is being offered at Rs 32,495 for a 100 mg vial. The current MRP of existing Trastuzumab Emtansine drug is Rs 1,59,225 for 100 mg vial. Ujvira will be available in two strengths, 100 mg and 160 mg.
Bharat Parenterals was locked in an upper circuit of 5% at Rs 406.20 after the pharma company on Saturday said it received the licence and authorization from Drugs Controller General of India (DCGI) and Central Drugs Standard Control Organisation (CDSCO) for the manufacturing and marketing of Favipiravir oral suspension 100mg/ml, which will be used for treatment of COVID 19 disease.
Natco Pharma galloped 9.27% after the drug maker has received final approval for lenalidomide capsules of 5 mg, 10 mg, 15 mg, and 25 mg strengths from the US Food and Drug Administration (USFDA). The drug company said it has received a tentative approval of the 2.5 mg and 20 mg strengths. Lenalidomide capsules are used to treat various types of cancers. It works by slowing or stopping the growth of cancer cells. It is also used to treat anemia in patients with certain blood/bone marrow disorders. Natco Pharma, along with its marketing partner Arrow International previously settled the Paragraph IV litigation related to the product with Celgene which sells the product under the brand-name Revlimid. Natco Pharma and Arrow shall launch the product on agreed-upon launch dates in the future.
Glenmark Pharmaceuticals fell 0.38%. The drug maker said it received ANDA approval for icatibant injection, 30 mg/3 mL (10 mg/mL) single-dose prefilled syringe. Glenmark Pharmaceuticals has received final approval by the United States Food & Drug Administration (USFDA) for icatibant injection. The product is the generic version of Firazyr injection of Shire Human Genetic Therapies. This marks Glenmark's first synthetic decapeptide injectable approval and will be manufactured in their North American manufacturing facility based in Monroe, North Carolina.
Salasar Techno Engineering added 1.83% after the company said it secured a project worth Rs 238.65 crore from Power Grid Corporation of India (PGCIL). The orders include construction of 201 Km transmission line network and construction of 4 new power substations in the Arunachal Pradesh.
Hero MotoCorp rose 0.53% after the two-wheeler major announced that it is gearing up towards a gradual resumption of operations by starting production at all its manufacturing plants in India from Monday, 24 May 2021. The company had already commenced single shift production at three of its plants in Gurugram and Dharuhera located in Haryana and at Haridwar in the state of Uttarakhand from 17 May 2021. Hero said that the other plants of Hero MotoCorp in India namely Neemrana in Rajasthan, Halol in Gujarat and Chittoor in Andhra Pradesh, will also start single shift operations from 24 May 2021. The Global Parts Centre (GPC) at Neemrana will also be operational from 24 May 2021.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
