Key equity indices closed lower on Friday, erasing intraday gains. The Nifty closed little above the 15,750 mark. Broader markets outperformed benchmark indices. Pharmaceutical and media stocks rallied while metal shares succumbed to selling pressure. Shares of Sun Pharma jumped over 10%.
The barometer index, the S&P BSE Sensex, fell 66.23 points or 0.13% to 52,586.84. The Nifty 50 index lost 15.40 points or 0.1% to 15,763.05, after hitting the day's high at 15,862.80.
Broader markets, however, managed to outperform the benchmark indices. The S&P BSE Mid-Cap index added 0.52% while the S&P BSE Small-Cap index rose 0.69%.
Buyers outnumbered the sellers. On the BSE, 1782 shares rose and 1449 shares fell. A total of 136 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 19,66,31,596 with 41,99,002 deaths. India reported 4,05,155 active cases of COVID-19 infection and 4,23,217 deaths while 3,07,43,972 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Earnings Impact:
Sun Pharmaceuticals jumped 10.04% to Rs 773.55. The pharma major posted a consolidated net profit of Rs 1444.1 in Q1 FY22 as compared to a net loss of Rs 1,655.6 crore registered in Q1 FY21. Consolidated sales from operations stood at Rs 9669.4 crore, registering a growth of 29% over Q1 FY21. The company said it repaid debt of about US$ 185 million in Q1FY22 compared to the debt as of 31 March 2021. Over the last 5 quarters, the company has repaid debt of about US$ 765 million.
Indian Oil Corporation shed 0.48% to Rs 103.4. The PSU OMC posted standalone net profit jumped 210% to Rs 5,941.37 crore in Q1 FY22 as compared to Rs 1,910.84 crore in Q1 FY21. Revenue from operations increased 74.3% to Rs 1,55,056.27 crore in Q1 FY22 as against Rs 88,938.97 crore posted in Q1 FY21. The company's average gross refining margin (GRM) for the period April-June 2021 zoomed to $6.58 per barrel as against negative $1.98 per barrel for the same period of the previous year. The core GRM or the current price GRM for the period April- June 2021 after offsetting inventory loss/ gain stood at $2.24 per bbl.
Tech Mahindra jumped 7.08% to Rs 1207.70. The IT major reported a 30.77% jump in consolidated net profit to Rs 1,365.70 crore in Q1 June 2021 over Rs 1,044.30 crore in Q4 March 2021. Consolidated revenue from operations grew 4.80% to Rs 10,197.60 crore in Q1 June 2021 from Rs 9,729.90 crore in Q4 March 2021. In terms of dollars (USD), revenue was at $1,383.60 million in Q1 FY22; growing 4.1% Q-o-Q and 14.6% Y-o-Y. Revenue growth stood at 3.9% Q-o-Q in constant currency terms.
Deepak Nitrite surged 7.22% to Rs 2038. The chemical maker's consolidated net profit jumped 205% to Rs 302.6 crore on a 126% rise in net sales to Rs 1,526.22 crore in Q1 FY22 over Q1 FY21. On a sequential basis, net profit climbed 4.1% while its net sales rose by 4.3% in Q1 FY22 over Q4 FY21.
Container Corporation of India rose 2.2% to Rs 643.95. The company's consolidated net profit soared 327% to Rs 259.23 crore in Q1 FY22 from Rs 60.61 crore posted in Q1 FY21. Net sales jumped 52.4% to Rs 1,819.94 crore in Q1 FY22 from Rs 1,194.20 crore reported in Q1 FY21.
TVS Motor Company added 3.5%. The two-wheeler company reported a standalone net profit of Rs 53 crore in Q1 FY22 as compared to a net loss of Rs 139 crore registered in Q1 FY21. Standalone net sales soared 174% to Rs 3,934.36 crore in Q1 FY22 from Rs 1,431.73 crore posted in Q1 FY21. The overall two-wheeler and three-wheeler sales including exports registered 6.58 lakh units in the quarter ended June 2021 as against 2.67 lakh units registered in the quarter ended June 2020.
Stocks in Spotlight:
Tejas Networks hit an upper circuit of 5% at Rs 258.30. The company's board had approved the issuance of shares and warrants to Tata Sons and its subsidiaries for an investment of Rs 1,884 crore. The transaction, when warrants are fully converted to shares, will give Tatas a 43% shareholding in the company, putting them in control. In addition, Tatas have announced an open offer to buy 26% of the company's shares from public shareholders, in compliance with Sebi's takeover code.
Ashok Leyland jumped 5.83%. Switch Mobility, an electrified commercial vehicles company and a subsidiary of Ashok Leyland, has announced a strategic agreement with Dana Incorporated (Dana), the global leader in drivetrain and e-propulsion systems, to make a minority investment in Switch.
R Systems International jumped 11.44%. The company said that a meeting of the board of directors is scheduled to be held on 06 August 2021 to consider the proposal for buyback of equity shares of the company. On the same day, the board will also consider and approve the audited standalone financial results and the unaudited consolidated financial results of the company for the quarter and half year ended 30 June 2021.
Global Markets:
Shares in Europe and Asia declined across the board on Friday, amid escalating concerns over rising coronavirus cases. Chinese stocks continued to witness significant volatility, as losses were seen again - a day after they clawed back some gains following a dive early this week.
The Euro Zone economy expanded in the second quarter of this year as various governments tiptoed around their economic reopening, preliminary data has shown.
The 19-member economy grew by 2% in the three months through to the end of June, according to preliminary estimates published on Friday by Eurostat. The region contracted 0.3% in the first quarter and 0.6% in the final quarter of 2020 two consecutive quarters of economic contraction are defined as a technical recession. Compared with the same quarter a year ago, the latest GDP reading represents a 13.7% increase.
Separately, Eurostat said that annual inflation is projected to reach 2.2% in the euro zone this month. This would be up from 1.9% in June.
Japan's industrial output jumped 6.2% in June, sharply rising from a 6.5% drop in May. June retail sales rose 0.1% from a year earlier.
U.S. stocks rose to record levels on Thursday as investors shrugged off economic data pointing slower-than-expected growth. The US economy expanded 6.5% annualized in the second quarter, according to government data released Thursday. The number of Americans collecting unemployment benefits slid last week. Jobless claims dropped by 24,000 to 400,000 last week, the Labor Department reported Thursday.
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