Key equity benchmarks ended with strong gains on Tuesday, rising for the fifth straight session. Global shares advanced as European Union (EU) leaders agreed on a 750 billion euros package aimed at funding post-pandemic relief efforts in the region.
Hopes for a coronavirus vaccine also lifted risk appetite. The first set of results from early-stage clinical trials of the Oxford University Covid-19 vaccine candidate show the vaccine is safe and induces an immune reaction.
As per provisional closing, the barometer S&P BSE Sensex jumped 511.34 points or 1.37% at 37,930.33. The Nifty 50 index rose 140.05 points or 1.27% at 11,162.25.
The broader market underperformed the benchmarks. The S&P BSE Mid-Cap index shed 0.22% while the S&P BSE Small-Cap index rose 0.24%.
The market breadth was positive. On the BSE, 1448 shares rose and 1239 shares fell. A total of 162 shares were unchanged.
Buzzing Index:
The Nifty Auto index rose 1.69% to 7,290.80, extending gains for fifth day. The index has added 5.42% in five sessions.
Eicher Motors (up 5.28%), Maruti Suzuki (up 4.25%) and Tata Motors (up 3%) were the top index gainers.
Mahindra & Mahindra (down 0.87%), Bajaj Auto (up 0.05%), Hero MotoCorp (up 0.26%) and Bharat Forge (up 0.27%) were the top index laggards.
According to the data released by the Federation of Automobile Dealers Association (FADA), passenger vehicle (PV) registrations declined 38.34% YoY to 1,26,417 units in June 2020.
Total vehicle registration for June 2020 tumbled 42% to 9,84,395 in June 2020 over June 2019 as the Indian Economy continues to battle with COVID-19, the apex automobile retailer's body said.
The commercial vehicles June retail sales witnessed the biggest contraction as it stood at 10,509 units, down by 83.83% as compared to 64,976 units reported in the same period last year. While the two wheeler category's registrations declined by 40.92%, the three wheeler segment's registrations slumped 75.43% in June 2020 over June 2019.
However, tractors registrations continue to march ahead with June numbers showing a YoY growth of 10.86%. Robust crop situation of previous harvest and timely arrival of monsoons resulted in a demand recovery that was observed in rural market leading to rise in sales volume of tractors.
"June registrations, although better than May, is still not indicative of the actual demand situation as lockdown woes continue in some parts and supply side is far from its complete potential", FADA said.
Stocks in Spotlight:
Bajaj Finance fell 3.96% to Rs 3305 after the company said Rahul Bajaj has decided to step down from his position as chairman at the end of this month.
Consequently, the company's board, at its meeting held today, has approved the appointment of Sanjiv Bajaj, currently the vice chairman of the company, as non-executive chairman of the company with effect from 1 august 2020, in place of Rahul Bajaj.
The non-banking financial company's (NBFC's) consolidated net profit declined 20% to Rs 962.32 crore in Q1 June 2020 from Rs 1195.25 crore in Q1 June 2019. Total income jumped 14.5% to Rs 6649.74 crore in Q1FY21 as against Rs 5807.76 crore in the same period last year.
Loan losses and provisions for Q1FY21 was Rs 1,686 crore as against Rs 551 crore in Q1FY20. During the quarter, Bajaj Finance made an additional contingency provision of Rs 1,450 crore for COVID-19 taking the overall contingency provision for COVID-19 to Rs 2,350 crore as of 30 June 2020.
SBI Life Insurance Company rose 4.39% to Rs 892 after the life insurer posted a 5.1% rise in net profit to Rs 390.89 crore in Q1 June 2020 from Rs 371.9 crore in Q1 June 2019. Net premium income rose 14% to Rs 7,588 crore in Q1 June 2020 from Rs 6,655 crore in Q1 June 2019.
The annualized premium equivalent (APE), a measure of new business written by a life insurance company, fell 32% to Rs 1270 crore in Q1 June 2020 as against Rs 1860 crore in the same period last year. The company's net worth increased by 17% to Rs 9310 crore in Q1 June 2020 from Rs 7940 crore in Q1 June 2019.
SBI Cards and Payment Services gained 3.15% to Rs 775.50 after the company's net profit rose 14% to Rs 393.29 crore in Q1 June 2020 compared with Rs 345.59 crore in Q1 June 2019. The rise in the net profit was aided by reduction in operating costs (down 15.4% YoY) and finance costs (down 9% YoY).
Total income stood at Rs 2,195.60 crore in Q1 June 2020, sliding 4.72% from Rs 2,304.27 crore in Q1 June 2019. Meanwhile, accounts in moratorium went down by 88% to 1.5 lakh in June 2020 from 12.5 lakh in May 2020.
ACC added 3.96% to Rs 1382.75 after the cement major's operating EBITDA margin improved to 20.8% in Q2 June 2020 from 19.3% in Q2 June 2019 bouyed by strong cost management and efficiency actions.
The company's consolidated net profit tumbled 40.5% to Rs 270.95 crore in Q2 June 2020 as against Rs 455.68 in Q2 June 2019. Revenue from operations stood at Rs 2602.24 crore in Q2 June 2020, declining 37% from Rs 4149.82 crore reported in the same period last year.
The cement sales volume declined 34% to 4.76 million tonnes in Q2 June 2020 from 7.23 million tonnes in Q2 June 2019. The ready-mix concrete sales volume tumbled 82% to 0.15 cubic million metres in Q2 June 2020 from 0.85 cubic million metres in Q2 June 2019.
Global Markets:
Markets in Europe and Asia rose across the board on Tuesday buoyed by a slew of positive news on the coronavirus vaccine and fiscal stimulus fronts.
European Union (EU) leaders reached a deal on a 750 billion euro ($857 billion) recovery fund to help the region recover from the coronavirus crisis. EU heads of state had been locked in talks since Friday morning. Early Tuesday morning, however, the leaders reached a breakthrough agreement. Investor sentiment was also supported by a slew of positive news on the coronavirus vaccine front.
US stocks climbed on Monday after erasing early losses as tech giants rallied and investors focused on positive COVID-19 vaccine news.
A UK biotech firm, Synairgen, reportedly soared as much as 552% on Monday after announcing that its drug was associated with a significantly lower chance of a patient requiring a ventilator or dying.
Pfizer and BioNTech reported early positive data on a joint coronavirus vaccine Monday and another candidate from Oxford University and AstraZeneca also showed a positive immune response in an early trial.
Investors are also keeping an eye on Washington, where lawmakers are starting to hammer out a rescue package to replace some of the expiring benefits earlier versions contained.
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