The domestic equity benchmarks settled with modest gains on Monday. The Nifty recovered from its early low of 15,505.65 and settled near the 15,750 mark amid value buying after a three-day losing streak. Barring the IT and Auto index, all the sectoral indices on the NSE ended in the green. Shares of Adani Group companies were in demand after a recent selloff.
The barometer index, the S&P BSE Sensex, gained 230.01 points or 0.44% at 52,574.46. The Nifty 50 index rose 63.15 points or 0.40% at 15,746.50. The 50-unit index declined 1.17% in the past three sessions.
The broader market outperformed the benchmarks. The BSE Mid-Cap index added 0.82% and the BSE Small-Cap index gained 0.83%.
The market breadth was strong. On the BSE, 2049 shares rose and 1258 shares fell. A total of 156 shares were unchanged.
The US Dow Jones Futures were up 210 points, indicating a strong opening in US markets today.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 17,84,91,809 with 38,66,201 deaths. India reported 7,02,887 active cases of COVID-19 infection and 3,88,135 deaths while 2,88,44,199 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India reported 53,256 new coronavirus infections, the lowest in 88 days, taking the total tally of COVID-19 cases to 2,99,35,221, while the active cases further reduced to 7,02,887, according to the Union Health Ministry data updated on Monday, 21 June 2021. The death toll climbed to 3,88,135 with 1,422 fresh fatalities, the lowest in 65 days.
The active cases now comprise 2.35% of the total infections, while the national COVID-19 recovery rate has improved to 96.36%, the data updated at 8 A.M. showed. A net decline of 26,356 cases has been recorded in the COVID-19 caseload in a span of 24 hours.
Economy:
India's unemployment rate declined to 8.7% in the week ended 13 June 2021 from the monthly unemployment rate of 14.7% in May 2021 as COVID-19 cases continue to decline. Data from the Center for Monitoring Indian Economy (CMIE) indicate that the improvement in the unemployment rate over the past weeks is due to the easing of restrictions in various parts of the country.
According to CMIE, the monthly unemployment rate in May 2021 was 14.7%. The current urban employment rate has come down 8.18 percentage points from 17.88% in the last week of May 2021 to 9.7% in the week ended on 13 June 2021.
Rural India has also seen a decline in the unemployment rate. By the end of the second week of June 2021, this rate has come down to 8.4% as compared to 10.63% in May 2021.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 6.034% as compared with 6.006% 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 74.1025, compared with its close of 73.86 during the previous trading session.
MCX Gold futures for 5 August 2021 settlement rose 0.64% to Rs 47,027.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.16% to 92.08.
In the commodities market, Brent crude for August 2021 settlement rose 5 cents at $73.56 a barrel. The contract rose 43 cents, or 0.59% to settle at $73.51 a barrel in the previous trading session.
Foreign Markets:
European shares advanced after a selloff on Friday. Most Asian stocks declined as investors mulled the implications of a surprise hawkish shift last week by the U.S. Federal Reserve.
Meanwhile, China kept its benchmark lending rate unchanged. China on Monday announced that the one-year Loan Prime Rate (LPR) was kept unchanged at 3.85% while the five-year LPR was also held steady at 4.65%.
US stocks fell sharply on Friday as traders worried the Federal Reserve could start raising rates sooner than expected.
St. Louis Federal Reserve President Jim Bullard offered a fresh dose of hawkishness, saying Friday that he thinks the Fed should lift its benchmark interest rate as early as late 2022.
Buzzing Indian Segment:
Shares of Adani Group companies rallied. Adani Ports & SEZ (up 5.19%), Adani Green Energy (up 5%), Adani Total Gas (up 5%), Adani Transmission (up 5%), Adani Power (up 4.96%) and Adani Enterprises (up 3.55%) surged.
Stocks in Spotlight:
NTPC advanced 3.87% after the company's consolidated net profit surged 185.3% to Rs 4,649.49 crore on 0.9% slip in net sales to Rs 30,102.60 crore in Q4 March 2021 over Q4 March 2020. Profit before tax skid 14.38% to Rs 4,017.72 crore in Q4 FY21 as against Rs 4,692.53 crore in Q4 FY20. The board of NTPC has approved the enhancement of borrowing limit of the company to Rs 2,25,000 crore from Rs 2,00,000 crore.
HDFC Bank rose 0.58%. HDFC Bank on Saturday announced that its board has approved to buy 3.56 crore shares or 4.99% stake in HDFC ERGO General Insurance Co. from its parent and mortgage lender Housing Development Finance Corporation. The aggregate consideration for purchase of 3,55,67,724 shares of Rs 10 each of HDFC ERGO is Rs 1,906.43 crore i.e. Rs 536 per share.
Maruti Suzuki India fell 0.82%. The car major on Monday announced that it has planned price hike in the second quarter due to higher input costs. Maruti Suzuki India in an exchange filing said, "The company's vehicles continue to be adversely impacted due to increase in various input costs. Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price rise."
Alkem Laboratories declined 0.04%. The drug company said that the USFDA had conducted an inspection of the company's manufacturing facility located at St. Louis, USA from 14 June 2021 to 18 June 2021. At the end of the inspection, the company has received Form 483 with two observations.
Hinduja Global Solutions hit an upper circuit of 5% at Rs 2,476.15 after the company's consolidated net profit surged 203% to Rs 131.25 crore in Q4 FY21 from Rs 43.27 crore in Q4 FY20. Net sales during the quarter increased 21.6% year-on-year (Y-o-Y) to Rs 1,563.59 crore. While the company's interest payments declined 17.5% to Rs 20.44 crore, depreciation costs fell 12.5% to Rs 73.40 crore in Q4 FY21 over Q4 FY20. Profit before tax in Q4 FY21 stood at Rs 167.57 crore, up 88% from Rs 89.14 crore in Q4 FY20.
Timken India rose 0.37%. The company's net profit dropped 13.6% to Rs 52.93 crore on 17.3% rise in net sales to Rs 475.36 crore in Q4 March 2021 over Q4 March 2020. Profit before tax declined 9.4% to Rs 74.66 crore in Q4 FY21 as against Rs 82.38 crore in Q4 FY20.
Info Edge (India) slipped 0.83%. The company reported 60.2% rise in standalone net profit to Rs 66.68 crore on 10.2% fall in net sales to Rs 290.04 crore in Q4 FY21 over Q4 FY20. The company's revenue from Recruitment Solutions segment was at Rs 198.64 crore (down 13.9% Y-o-Y), revenue from 99acres for real estate was at Rs 50.09 crore (down 11.1% Y-o-Y) in Q4 FY21. Billing in the fourth quarter was at Rs 415.7 crore, up by 25.2% over the corresponding quarter in FY 2019-20. Operating EBITDA declined 44.9% to Rs 53.20 crore in Q4 FY21 over Q4 FY20. The deferred sales revenue (amount collected in advance) as at 31 March 2021 is Rs 520.80 crore, up 11.9% over the balance as at 31 March 2020.
PNB Housing Finance hit a lower circuit of 5% at Rs 702.40 after the Sebi restrained the company from going ahead with its proposed Rs 4,000-crore share allotment to a clutch of companies led by the Carlyle Group. The Securities and Exchange Board of India (Sebi) has directed PNB Housing Finance (PNBHF) to carry out the valuation process as per the relevant legal provisions. The market regulator said the resolution regarding the deal, which was to be put for shareholders' vote on 22 June 2021, was "ultra-vires" of the company's articles of association (AoA).
Bharat Dynamics fell 1.45% after the company's net profit declined 15.9% to Rs 260.36 crore on 21.9% decline in revenue from operations to Rs 1,106.10 crore in Q4 FY21 over Q4 FY20. Profit before tax in Q4 FY21 stood at Rs 337.75 crore, down 15.7% from Rs 400.43 crore in Q4 FY20.
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