The domestic equity barometers ended the volatile session with small gains on Tuesday. After hitting record high levels in mid-morning trade, the benchmarks reversed trend and briefly slipped into the red in mid-afternoon trade. The key indices, however, bounced back in the late trade. The Nifty managed to settle above the 16,250 mark. IT stocks rallied while metals and realty shares tumbled.
The barometer index, the S&P BSE Sensex, added 151.81 points or 0.28% to 54,554.66, a record closing high level. The Nifty 50 index advanced 21.85 points or 0.13% to 16,280.10.
The Sensex hit a record high of 54,779.66 while the Nifty hit a record high of 16,359.25 in mid-morning trade.
The broader market was under pressure. The BSE Mid-Cap index fell 0.85% and the BSE Small-Cap index shed 2.05%.
The market breadth was weak. On the BSE, 761 shares rose and 2498 shares fell. A total of 115 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 20,33,91,279 with 43,03,090 deaths. India reported 3,88,508 active cases of COVID-19 infection and 4,28,682 deaths while 3,11,80,968 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Parliament Monsoon Session:
The Rajya Sabha was adjourned till tomorrow. The Opposition MPs protested against the government on issues including farmers & protests, Pegasus spyware, COVID-19 and inflation.
The Government admits no decision has been taken to prepare National Register of Citizens (NRC) at national level. "Till now, the Government has not taken any decision to prepare National Register of Indian Citizens (NRIC) at the national level," siad MoS Home Nityanand Rai in a reply to a question in Lok Sabha.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 6.233% as compared with 6.221% 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 74.4350, compared with its close of 74.2650 during the previous trading session.
MCX Gold futures for 5 October 2021 settlement fell 0.01% to Rs 45,882.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.12% to 93.06.
In the commodities market, Brent crude for October 2021 settlement rose 83 cents at $69.87 a barrel. The contract fell $1.66, or 2.35% to settle at $69.04 a barrel in the previous trading session.
Oil prices rose on Tuesday, recouping some of the losses in the previous session, as rise of demand in Europe and the United States outweighed concerns over a rise of COVID cases in Asian countries.
Foreign Markets:
Most shares in Europe and Asia advanced on Tuesday, attempting to break out from a cautious approach seen globally at the start of the week.
Worries about the impact of COVID on global growth continued to weigh on investor sentiment, with countries grappling with the spread of the highly transmissible delta variant of the virus.
In US, the S&P 500 dipped on Monday, as fuel demand worries during a resurgent pandemic sent energy stocks lower but rising U.S. Treasury yields lifted financials stocks, keeping Wall Street's benchmark index near record levels.
Two Federal Reserve officials said on Monday that the U.S. economy is growing rapidly and that while the labor market still has room for improvement, inflation is already at a level that could satisfy one leg of a key test for the beginning of interest rate hikes.
F&O Entry:
The National Stock Exchange (NSE) will include 10 new stocks for trading in the futures and options (F&O) segment from 27 August 2021.
Hindustan Aeronautics (up 1.69%), IndiaMart InterMesh (up 1.38%), Polycab India (up 0.86%), Ipca Laboratories (up 4.41%), Oracle Financial Services Software (up 1.55%) advanced.
Can Fin Homes (down 3.55%), MCX (down 2.60%), Indian Energy Exchange (down 1.82%), Syngene International (down 0.02%), Dixon Technologies (India) (down 0.03%) declined.
The circular was issued after market hours yesterday, 9 August 2021. NSE will inform about the market lot, scheme of strikes and quantity freeze limit of the securities on 26 August 2021 through a separate circular.
Buzzing Index:
The Nifty IT index rose 0.87% to 31,713.35, extending gains for the fourth day. The index has added 2.38% in four sessions.
Tech Mahindra (up 2.76%), Oracle Financial Services Software (up 1.51%), Wipro (up 1.21%), HCL Technologies (up 1.07%), Larsen & Toubro Infotech (up 0.79%), Infosys (up 0.65%), Coforge (up 0.51%), TCS (up 0.23%) and Mphasis (up 0.11%) advanced.
Stocks in Spotlight:
Jindal Steel & Power (JSPL) fell 4.14%. The steel major's consolidated net profit (from continued operations) surged 967.29% to Rs 2,515.71 crore on 62.78% jump in total revenue from operations to Rs 10,609.50 crore in Q1 June 2021 (Q1 FY22) over Q1 June 2020 (Q1 FY21). Profit before tax soared 818.11% to Rs 3,409.62 crore in Q1 FY22 as against Rs 371.37 crore in Q1 FY21. The Q1 result was declared during market hours today, 10 August 2021.
Computer Age Management Services (CAMS) fell 1.48%. CAMS posted a 59% increase in consolidated net profit to Rs 63.24 crore on 35.3% rise in revenue from operations to Rs 201.17 crore in Q1 FY22 over Q1 FY21. On a sequential basis, net profit increased by 5.1% while revenue from operations grew by 0.7% in Q1 FY22 over Q4 FY21. Profit before tax grew 5.1% on a sequential basis and 64% on a year-on-year basis to Rs 84.99 crore in Q1 FY22.
Shree Cement fell fell 4.01%. On a consolidated basis, the cement company's net profit surged 90.97% to Rs 630.89 crore on a 46.16% jump in net revenue from operations to Rs 3,634.83 crore in Q1 June 2021 over Q1 June 2020.
Bombay Dyeing & Manufacturing Company tumbled 5.20%. On a consolidated basis, the company's net loss (from continued operations) stood at Rs 107.91 crore in Q1 June 2021 lower than net loss of Rs 129.13 crore in Q1 June 2020. Revenue from operations soared 317.73% YoY to Rs 380.85 crore in Q1 FY22.
Laxmi Organic Industries rose 2.77%. The company posted a 379% rise in consolidated net profit to Rs 102 crore on 82.4% jump in net sales to Rs 736 crore in Q1 FY22 over Q1 FY21.
Max Financial Services (MFSL) declined 3.73%. The private insurer posted an 80% fall in net profit to Rs 36 crore in Q1 FY22 from Rs 181.53 crore registered in Q1 FY21. MFSL's sole operating subsidiary, Max Life, registered a 28% increase in total revenues at Rs 4,626 crore in the period under review.
Coal India shed 0.73%. On a consolidated basis, the state-run coal major's net profit jumped 52% to Rs 3,169.65 crore on 36.76% increase in sales to Rs 25,282 crore in Q1 FY22 over Q1 FY21. Consolidated coal production (raw coal) rose by 2.43% to 123.98 million tonnes (MT) while offtake (raw coal) jumped by 32.8% to 160.44 MT in Q1 FY22 over Q1 FY21.
Separately, the PSU miner announced that the mines at Tikak, Tipong and Tirap were temporarily suspended from 3 June 2020 due to non- availability of forest and other statutory clearances. North Eastern Coalfields mines are managed directly by Coal India.
Reliance Industries (RIL) added 0.54% to Rs 2088.40. RIL, along with strategic investors Paulson & Co. Inc. and Bill Gates and a few other investors, has announced an investment of $144 million in Ambri Inc, an energy storage company based in Massachusetts, USA.
The investment, which is being done by RIL's wholly owned subsidiary Reliance New Energy Solar (RNESL), will help Ambri commercialise and grow its long-duration energy storage systems business globally. RNESL will invest $50 million to acquire 42.3 million shares of preferred stock in Ambri.
JSW Steel slipped 3.40%. The company's crude steel production grew 11% to 13.82 lakh tonnes in July 2021 as against 12.46 lakh tonnes in July 2020. While the production of flat rolled products declined 1% to 9.34 lakh tonnes, production of long rolled products surged 28% to 3.06 lakh tonnes in July 2021 over July 2020.
Hinduja Global Solutions (HGS) hit an upper circuit of 5% at Rs 3235.85 after the company said that it has entered into definitive agreements to divest its healthcare services business to funds affiliated with Baring Private Equity Asia (BPEA). The transaction based on enterprise value of $1,200 million, subject to closing adjustments, is expected to complete within 90 days, subject to shareholder and other regulatory approvals.
Separately, Hinduja Global Solutions reported 137.7% increase in consolidated net profit to Rs 117 crore in Q1 FY22 as against Rs 49.22 crore in Q1 FY21. Revenues from operations increased by 25.5% YoY to Rs 1550.5 crore during the quarter. As compared with Q4 FY21, the company's net profit and revenue have declined by 10.2% and 0.8% respectively.
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