Sensex closes above 51,000; Nifty above 15,300

Domestic indices closed near the day's high with modest gains on Wednesday. The Nifty closed near the crucial 15,300 mark. Buying was broad based. However, metals and PSU banks shares corrected. Encouraging Q4 earnings and positive global cues boosted investors sentiment.

As per the provisional closing data, the barometer index, the S&P BSE Sensex, rose 379.99 points or 0.75% to 51,017. The Nifty 50 index gained 99.85 points or 0.66% at 15,308.80.

In the broader market, the S&P BSE Mid-Cap index fell 0.14% and the S&P BSE Small-Cap index added 0.69%.

Buyers outpaced sellers. On the BSE, 1,959 shares rose and 1,178 shares fell. A total of 144 shares were unchanged.

 

Foreign portfolio investors (FPIs) bought shares worth Rs 959.77 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 563.59 crore in the Indian equity market on 25 May 2021, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 16,78,49,492 with 34,85,810 deaths. India reported 24,95,591 active cases of COVID-19 infection and 3,11,388 deaths while 2,43,50,816 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India reported 2,08,921 new COVID-19 cases and 4,157 deaths in the last 24 hours. India has conducted 22.17 lakh tests on Monday, the highest number of tests conducted in a single day.

Economy:

On Monday, 24 May 2021, the Commerce and Industry Ministry said that Foreign Direct Investments (FDI) in India grew 19% to $59.64 billion during 2020-21 on account of measures taken by the government on the fronts of policy reforms, investment facilitation and ease of doing business. The total FDI, including equity, re-invested earnings and capital, rose 10% to the "highest ever" of $81.72 billion during 2020-21 as against $74.39 billion in 2019-20.

On Tuesday, 25 May 2021, the State Bank of India (SBI) in its "Ecowrap" report stated that India's GDP may have contracted less than earlier estimated in FY21. While the Central Statistics Office (CSO) in February 2021 estimated that the country has contracted by 8% in FY21, SBI now projects the Indian economy actually may have shrank by 7.3%.

SBI report said: "Based on quarterly GDP numbers in FY21 and full year FY21 GDP estimates, Q4 GDP was projected to reveal a contraction of 1.1%. Based on SBI Nowcasting model the forecasted GDP growth for Q4 would be around 1.3% (with downward bias). We now expect GDP decline for the full year to be around -7.3% (our earlier prediction: -7.4%)."

Cyclone Yaas Update:

Super Cyclone Yaas, which has been categorised as the "very severe cyclonic storm", hit the Odisha coast today morning, 26 May 2021. The India Meteorological Department (IMD) said that the landfall process began sometime around 9 AM and hit the Dhamra port in Bhadrak district, Odisha. Over 10 lakh people have been relocated to storm shelters in Odisha and West Bengal. While other states such as Andhra Pradesh, Tamil Nadu and Andaman and Nicobar islands have also put a contingency plan in action, it is Odisha that is likely to be at the centre of the devastating storm. In terms of severity, it may be slightly lower than Cyclone Tauktae, but the IMD has warned that it will take at least another 24 hours before Cyclone Yaas degenerates.

Nifty Result Today:

Bharat Petroleum Corporation (BPCL) (down 0.02%) will announce its quarterly result today.

Earnings Impact:

Godawari Power & Ispat rose 5.69% to Rs 1012.50 after the company's consolidated net profit surged to Rs 326.95 crore in Q4 FY21 from Rs 33.37 crore in Q4 FY20. Net sales grew 60% to Rs 1,262.25 crore in Q4 FY21 as against Rs 790 crore in Q4 FY20. Profit before tax (PBT) stood at Rs 432.8 crore in Q4 FY21 as compared to Rs 58 crore posted in Q4 FY20. EBITDA jumped 219% year-on-year to Rs 489.6 crore in Q4 FY21. EBITDA margin improved to 38.8% in Q4 FY21 compared with 19.4% in Q4 FY20. The company's finance cost declined 44% year on year to Rs 27.6 crore in Q4 FY21.

Stove Kraft fell 3.3%. The company reported a net profit of Rs 19.2 crore in Q4 FY21 as against a net loss of Rs 10.4 crore in Q4 FY20. Revenues increased by 53% year-on-year (YoY) to Rs 235.4 crore during the quarter. The company reported EBITDA of Rs 25.2 crore in the fourth quarter. It had reported an EBITDA loss of Rs 1.7 crore in the same period last year. EBITDA margin was at 10.7% as on 31 March 2021.

Ramco Systems fell 2.89%. On a consolidated basis, the company's net profit tanked 58.90% to Rs 7.45 crore on 12.55% decline in revenue from operations to Rs 149.86 crore in Q4 FY21 over Q3 FY21. Profit before tax dropped 59.03% to Rs 14.78 crore in Q4 FY21 as against Rs 36.08 crore in Q3 FY21. In FY21, order booking crosses $100 million, records 21% YoY growth. The company said it generated sufficient cashflow to repay the entire borrowings and become debt free.

AstraZeneca Pharma India rose 0.34%. The pharmaceutical company's net profit surged 184.95% to Rs 27.27 crore on 7.88% increase in revenue from operations to Rs 210.25 crore in Q4 March 2021 over Q4 March 2020. Profit before tax soared 175.67% to Rs 36.83 crore in Q4 FY21 as against Rs 13.36 crore in Q4 FY20.

Gati advanced 2.14%. On a consolidated basis, Gati reported net loss of Rs 173.40 crore in Q4 FY21, higher than net loss of Rs 70.60 crore in Q4 FY20. Net sales rose 9.8% to Rs 406.64 crore in Q4 FY21 from Rs 370.09 crore in Q4 FY20. Pre-tax loss stood at Rs 183.78 crore in Q4 FY21, higher than pre-tax loss of Rs 39.48 crore in Q4 FY20.

Lux Industries jumped 16% after the company's consolidated net profit surged 118% to Rs 90.64 crore in Q4 FY21 as against Rs 41.49 crore in Q4 FY20. Net sales increased 48.18% year-on-year (YoY) to Rs 595.05 crore. EBITDA rose 95% to Rs 128.96 crore in Q4 FY21 from Rs 66.08 crore in Q4 FY20. EBITDA margin was at 21.45% as on 31 March 2021 as against 16.38% as on 31 March 2020.

VIP Industries lost 0.74% after the company's consolidated net loss stood at Rs 3.78 crore in Q4 FY21 compared with net profit of Rs 9.52 crore in Q4 FY20. Net sales skid 21.77% to Rs 243 crore in Q4 FY21 as against Rs 310.66 crore in Q4 FY20. The revenue was impacted due to COVID-19. Pre-tax loss stood at Rs 5.72 crore in Q4 FY21 as against a pre-tax profit of Rs 10.45 crore in Q4 FY20.

Thermax jumped 3.54% after the company's consolidated net profit surged 175% to Rs 107 crore in Q4 FY21 from Rs 39 crore in Q4 FY20. The Group posted a consolidated operating revenue of Rs 1,575 crore in the fourth quarter of FY 2020-21 as against Rs 1,323 crore reported in the same period last year, up 19% year-on-year (YoY). On the segmental front, energy business revenue was at Rs 1,175 crore (up 11.8% YoY), environment business revenue was at Rs 302 crore (up 51.8% YoY) and chemical business revenue stood at Rs 119 crore (up 24% YoY) in the fourth quarter.

Bayer CropScience was up 0.94%. The company's net profit surged 96.50% to Rs 61.90 crore on 59.95% jump in revenue from operations to Rs 733.70 crore in Q4 March 2021 over Q4 March 2020. Profit before tax soared 210.50% to Rs 79.80 crore in Q4 FY21 as against Rs 25.70 crore in Q4 FY20. The board of Bayer CropScience on 25 May 2021, had recommended a final dividend of Rs 25 per share.

Global Markets:

Shares in Europe and Asia rose on Wednesday. Markets in Indonesia, Singapore and Thailand were closed for a holiday.

U.S. stocks closed slightly lower on Tuesday following a rally in the prior session as investors continue to try and assess the route of inflation.

Investors are awaiting a speech from Federal Reserve Vice Chair Randal Quarles on Wednesday as some concerns surrounding inflation and potential tapering continue to linger.

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