The equity barometers traded with decent gains in mid-morning trade, supported by firmness in other Asian stock markets. However, rising COVID-19 cases across the globe restricted gains. At 11:23 IST, the barometer index, the S&P BSE Sensex, rose 135.89 points or 0.39% at 35,047.21. The Nifty 50 index added 48.75 points or 0.47% at 10,359.95.
In the broader market, the S&P BSE Mid-Cap index rose 1.03% while the S&P BSE Small-Cap index rose 1.04%.
The market breadth was strong. On the BSE, 1625 shares rose and 747 shares fell. A total of 114 shares were unchanged.
Covid-19 Update:
India reported 1,78,014 active cases of COVID-19 infection and 14,011 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 90,98,855 far with 4,72,172 deaths, according to data from Johns Hopkins University.
Buzzing Index:
The Nifty FMCG index added 1.48% to 29,293.30 as value buying emerged after recent underperformance. The index has risen 4.2% in the past one month while the benchmark Nifty has rallied 14.8% in the same period.
Among the index constituents, Nestle India (up 2.58%), Hindustan Unilever (up 2.42%), Godrej Industries (up 2.34%), Dabur India (up 2.10%), Colgate-Palmolive India (up 2.02%), Emami (up 1.79%), Britannia Industries (up 1.72%), Marico (up 1.54%), Tata Consumer Products (up 1.43%), Godrej Consumer (up 0.79%), United Breweries (up 0.59%), Procter & Gamble Hygiene (up 0.49%) and ITC (up 0.46%) edged higher.
United Spirits (down 1.35%) and Jubilant Foodworks (down 0.18%) edged lower.
Earnings impact:
Balaji Amines gained 2.42% to Rs 457 after the company's tandalone net profit rose 19.8% to Rs 32.35 crore on 0.3% rise in net sales at Rs 235.50 crore in Q4 March 2020 over Q4 March 2019.
EBITDA margin for the quarter stood at 23.6%, up 280 basis points as against 20.8% in Q4 FY19. Operating margins improved due to marked increase in volume offtake with improved price realizations largely across all products, increase in operating leverage and benign raw material prices.
Total volumes stood at 22,146 Million Tonnes (MT) for Q4 FY20, up by 2.8% from 21,543 MT in Q4 FY19. For the January-March quarter, amines volumes stood at 4,525 MT, amines derivatives volumes stood at 9,030 MT and specialty chemicals volumes stood at 8,591 MT.
D. Ram Reddy, managing director commented, "COVID-19 related lockdown had no significant impact on our Q4FY20 earnings given that most of our products fall under category of essential commodities. Our thrust remains to expand our portfolio of key derivative products alongside entering newer specialty chemicals to gain from both vertical integration and operating efficiencies.
Aegis Logistics surged 4.15% to Rs 206.90. The company's consolidated net profit declined 33.7% to Rs 46.58 crore on 33% fall in net sales to Rs 1,241.65 crore in Q4 March 2020 over Q4 March 2019. Its board has recommended a final dividend of Re 1.20 per share for the financial year ended 31 March 2020.
Global Markets:
Asian shares were mostly higher on Tuesday, recovering from some early losses as regional markets tracked a late rally on Wall Street led by technology shares.
Shares in the region opened lower, spooked by comments by White House trade adviser Peter Navarro suggesting the U.S. trade deal with China was in trouble. However, Navarro said his comments were taken out of context, and President Donald Trump tweeted that the agreement with China, the basis for a truce in a tariff war over technology and other problems, is still on. Trump tweeted: "The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!"
The US stock market finished session higher on Monday, 22 June 2020, as investor sentiment was bolstered by optimism over a quick recovery for the domestic economy after better than expected retail sales and employment data. However, market gain were capped after report from the National Association of Realtors showing a continued nosedive in existing home sales in May and amid evidence of an acceleration of COVID-19 infections in half of all U.S. states and elsewhere in the world.
New cases have increased in the US as states reopen from lockdowns that began in mid-March to contain the disease. The US reported more than 30,000 new COVID-19 cases on Friday and Saturday, the highest levels since May 1, according to Johns Hopkins University data.
According to the World Health Organization, more than 183,000 new coronavirus infections were reported globally on Sunday, the biggest single-day increase since the outbreak began.
Technology stocks led the broader market higher, with shares of Amazon, Adobe, and Square gaining. Stay-at-home stocks also rose with Netflix, Zoom, and Peloton all being notable gainers.
In economic news, the National Association of Realtors data showed that existing home sales plunged by 9.7% to an annual rate of 3.91 million in May after plummeting by 17.8% to a rate of 4.33 million in April.
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