Key indices extended early losses and hit fresh intraday low in morning trade. Weak domestic economic data and negative global cues weighed on sentiment. Surge of fresh coronavirus cases and intensifying US-China tensions also put pressure on stocks. The Nifty fell below the crucial 11,000 mark.
At 10:26 IST, the barometer index, the S&P BSE Sensex, tumbled 400 points or 1.06% at 37,206.82. The Nifty 50 index was down 106 points or 0.96% at 10,967.05.
The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index was up 0.34% while the S&P BSE Small-Cap index was up 0.82%.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1103 shares rose and 970 shares fell. A total of 145 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 958.64 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 442.73 crore in the Indian equity market on 31 July, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 18,019,472 with 688,369 deaths. India reported 5,79,357 active cases of COVID-19 infection and 38,135 deaths while 11,86,203 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
The seasonally adjusted IHS Markit India Manufacturing PMI fell to 46 in July, from 47.2 in June, and pointed to a marked deterioration in business conditions across the Indian manufacturing sector.
Commenting on the latest survey results, Eliot Kerr, Economist at IHS Markit, said: "Latest PMI data from Indian manufacturers shed more light on the state of economic conditions in one of the countries worst affected by the COVID-19 pandemic. The survey results showed a re-acceleration of declines in the key indices of output and new orders, undermining the trend towards stabilisation seen over the past two months. Anecdotal evidence indicated that firms were struggling to obtain work, with some of their clients remaining in lockdown, suggesting that we won't see a pick-up in activity until infection rates are quelled and restrictions can be further removed."However, on a more positive note, firms remained optimistic, with confidence towards future activity continuing to strengthen during July."
India's fiscal deficit reached Rs 6.62 lakh crore, or 83.2% of the budgeted estimate in the quarter ended June. The gap between the revenue and expenditure during the same period in 2019-20 stood at 61.4% of the budgeted target.
GST collections in July fell to Rs 87,422 crore from Rs 90,917 crore in June, according to a Finance Ministry statement. However, July collections are higher than Rs 62,009 crore in May and Rs 32,294 crore in April.
India's infrastructure output contracted 15% in June from a year earlier, government data released on Friday showed, as a lockdown in response to COVID-19 weighed on economic activities. Infrastructure output, which comprises eight sectors including coal, crude oil and electricity and accounts for nearly 40% of industrial output, contracted 24.6% in the three months through June - the first quarter of the fiscal year - from a year earlier, the data showed.
Earnings Today:
Bank of India (up 0.53%), BSE (down 0.39%), Dhanlaxmi Bank (up 3.47%), Exide Industries (up 1.9%), Kansai Nerolac (down 0.17%), KPIT Tech (up 1.78%), Nava Bharat Ventures (up 2.7%), MRPL (up 0.23%), Solara Active Pharma (up 7.95%), VST Industries (down 0.97%) are some of the companies that will announce their Q1 results today.
Earnings Impact:
Tata Motors surged 5%. The auto major reported a consolidated net loss of Rs 8438 crore in Q1 June 2020, higher than net loss of Rs 3,698.34 crore in Q1 June 2019. Net sales in Q1 June 2020 stood at Rs 31,481.86 crore, falling 48% from Rs 60,830.16 posted in Q1 June 2019. The auto maker said that the nationwide lockdown resulted in the production and retailer shutdowns for major part of the quarter and heavily impacted the volumes. Negative operating leverage impacted the performance significantly.
UPL lost 5.1%. The company's consolidated net profit surged 93.3% to Rs 551 crore in Q1 June 2020 compared with Rs 285 crore in Q1 June 2019. Consolidated revenue from operations stood at Rs 7833 crore in Q1 June 2020, declining 1% compared with Rs 7906 crore in Q1 June 2019. Consolidated EBITDA jumped 29% year on year to Rs 1,704 crore in Q1 June 2020 as against Rs 1,319 crore in Q1 June 2019. UPL said it reported robust revenue performance almost at prior year level and EBITDA margin expansion in a turbulent environment driven by COVID-19.
Tata Chemicals fell 2.39% after the company reported a 67.2% drop in consolidated net profit to Rs 74.15 crore in Q1 June 2020 from Rs 226.33 crore posted in Q1 June 2019. Consolidated net sales for Q1 June 2020 stood at Rs 2,348.16 crore, falling 9% from Rs 2584.03 crore in Q1 June 2019. Tata Chemicals said globally, the sales volumes of soda ash declined by 25% with sodium bicarbonate relatively flat. During the quarter, the export market in the US witnessed a steep drop of 45% as compared to previous year. Demand from export market was significantly low in the flat glass segment across the globe.
Relaxo was down 0.2%.The footwear maker reported 51% decline in net profit to Rs 24 crore in Q1 June 2020 from Rs 50 crore in Q1 June 2019. Revenue from operations declined 44% on year-n-year (YoY) basis to Rs 364 crore during the quarter. The revenue was adversely affected due to complete nationwide lockdown till first week of May and significant disturbances during remaining period along with slowdown of economic activities. EBITDA fell 46% to Rs 57 crore during the period under review. EBITDA margin stood at 15.7% in Q1 FY21 as against 16.4% in Q1 FY20.
Godrej Agrovet gained 2.23%. The company reported 16.46% rise in consolidated net profit to Rs 88.51 crore on 8.56% fall in total income to Rs 1,572.02 crore in Q1 June 2020 over Q1 June 2019. Consolidated EBITDA rose 14.5% to Rs 174.20 crore in Q1 June 2020 over Q1 June 2019.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
