Key barometer came off day's low in afternoon trade as buying emerged at lower levels. At 13:20 IST, the barometer index, the S&P BSE Sensex dropped 727.35 points or 2.15% at 33,053.54. The Nifty 50 index fell 204.55 points or 2.05% at 9,768.35.
Global stock markets slumped on Monday on concern over rising coronavirus infections as countries open up after lockdowns. Rising infections in the US, as well as a fresh outbreak in Beijing, sent investors dumping risky assets. The US Dow Jones futures were down 750 points, indicating a weak opening in the US stock market on Monday.
The broader market was mixed. The S&P BSE Mid-Cap index fell 0.87%. The S&P BSE Small-Cap index rose 0.07%.
The market breadth was negative. On the BSE, shares 1,123 rose and 1,293 shares fell. A total of 169 shares were unchanged. In Nifty 50 index, 8 stocks advanced while 42 stocks declined.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,311.49 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,945.15 crore in the Indian equity market on 5 May, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 79,14,866 far with 4,33,472 deaths. India reported 1,53,106 active cases of COVID-19 infection and 9,520 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
Gainers & Losers:
Wipro (up 1.97%), Mahindra & Mahindra (up 1.25%), Gail (India) (up 0.57%), Zee Entertainment Enterprises (up 0.56%) and Sun Pharmaceutical Industries (up 0.55%) were top gainers in Nifty 50 index.
IndusInd Bank (down 6.48%), Axis Bank (down 4.88%), ICICI Bank (down 4.71%), Tata Motors (down 4.23%) and Bajaj Finance (down 3.95%) were top losers in Nifty 50 index.
Q4 Results Today:
Tata Motors (down 3.99%), Ashoka Buildcon (up 3.05%), Can Fin Homes (down 0.22%), CSB Bank (up 3.89%), JK Tyre & Industries (up 6.70%), Intellect Design Arena (down 0.85%), Narayana Hrudayalaya (up 1.98%), Pfizer (up 1.11%), Shoppers Stop (up 2.49%), Shilpa Medicare (up 1.75%) and CCL Products (India) (down 1.25%) are some of the companies that will announce their quarterly earnings today.
Earnings Impact:
Eicher Motors declined 2.93% after the company's consolidated net profit slumped 44.2% to Rs 304.28 crore on 11% drop in net sales to Rs 2,190.32 crore in Q4 March 2020 over Q4 March 2019. Royal Enfield sold 1,63,083 motorcycles in the quarter, registering a decline of 17% from 1,97,567 motorcycles sold over the same period last year. VE commercial vehicles (CV) sold 11,629 trucks and buses in the quarter, registering a decline of 45% from 21,010 trucks and buses sold over the same period in the last financial year. Meanwhile, the board approved 10-for-1 stock split. The company will split each share of face value Rs 10 each into 10 equity shares of face value Re 1 each.
Grasim Industries dropped 3.54%. The company reported a 32% surge in net profit to Rs 1,506 crore on a 11.3% decline in net sales to Rs 19,902 crore in Q4 March 2020 over Q4 March 2019. Net profit was aided by write back of deferred tax liabilities and lower exceptional charge in the current year. In its outlook, Grasim said its products will be impacted by the COVID-19 led general economic slowdown. The company has initiated various measures to reduce its fixed costs and conserve cash as part of its comprehensive business continuity plan.
Vinati Organics slipped 2.95% after net profit declined 9.6% to Rs 74.63 crore on 18.74% decline in net sales to Rs 245.34 crore in Q4 March 2020 over Q4 March 2019. Profit before tax fell 12.3% to Rs 107.92 crore in Q4 March 2020 over Q4 March 2019. Current tax expense declined 19.33% to Rs 30.67 crore in Q4 March 2020 over Q4 March 2019. The result was announced on Saturday, 13 June 2020. Meanwhile, the company has announced a final dividend of Rs 0.5 per equity share.
Bharat Heavy Electricals (BHEL) slumped 6.20% after the PSU company reported a consolidated net loss of Rs 1,532.18 crore in Q4 March 2020 as against net profit of Rs 680.77 crore in Q4 March 2019. Net sales for Q4 March 2020 tumbled 53.7% to Rs 4,594.10 crore from Rs 9,912 crore in the corresponding period last year. BHEL said spread of COVID-19 pandemic temporarily disrupted the operations of the company. The manufacturing facilities and site executions during 23 March 2020 to 31 March 2020 were inoperative, which along with the COVID impact globally (before the lockdown in India) impacted the revenues for the year. BHEL assessed the impact on revenue for the year at around Rs 4,000 crore.
Stocks in Spotlight:
Reliance Industries (RIL) fell 0.93%. RIL's partly paid-up shares listed on exchanges on Monday (15 June) at a premium. The company issued 44.26 crore partly paid-up shares with face value of Rs 2.5 per share under the rights issue at Rs 314.25 per share. The Rs 53,124 crore rights issue, which opened for subscription on 20 May 2020, concluded on 3 June and garnered 1.6 times subscription. RIL issued shares at Rs 1,257 apiece in the rights issue. The entire payment has to be paid in three tranches. The holders of the partly-paid up shares will have to pay second installment of Rs 314.25 in May 2021 and the balance Rs 628.5 in November 2021. RIL's partly-paid up shares will be converted to fully-paid up shares in November 2021.
Meanwhile, RIL on Saturday (13 June) said global alternative asset firm TPG will invest Rs 4,546.80 crore in Jio Platforms for a 0.93% stake and L Catterton, one of the world's largest consumer focused private equity firms, will invest Rs 1,894.50 crore in Jio Platforms for a 0.39% equity stake. With this investment, Jio Platforms has raised Rs 104,326.95 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton since 22 April 2020.
Dr. Reddy's Laboratories rose 0.36% after the company said it entered into a licensing agreement with Gilead Sciences for Remdesivir, a potential COVID-19 drug. Remdesivir, an investigational antiviral therapy developed by Gilead, received Emergency Use Authorization (EUA) by the US Food and Drug Administration (USFDA ) to treat COVID-19.
Global Markets:
European markets opened lower while Asian stocks traded lower on Monday after China reported an outbreak of new infections in Beijing and re-imposed precautions to prevent it from spreading. Investors fear that gradual lifting of lockdowns and restarting of travel could result in fresh waves of coronavirus cases.
In Europe, investors are keenly looking forward to travel restrictions being lifted between most European countries on Monday while in the U.K., non-essential shops are set to reopen as long as social distancing measures are in place.
On the data and earnings front, retailer H&M gives a second-quarter sales update and the euro zone's trade balance for April is released.
Chinese economic data for May released Monday stated that the industrial production in the country for that month rose 4.4% year-on-year while retail sales declined 2.8% year-on-year in May.
The US stocks finished session finished session higher after bouncing between losses and gains on Friday, 12 June 2020, as bargain hunting following a sharp losses a day earlier. However, market gains were capped as continued worries about the economy amid emerging second wave of the epidemic.
Adding to the positive sentiment, the University of Michigan released a report showing a continued rebound in US consumer sentiment in the month of June. The preliminary report showed the consumer sentiment index for June climbed to 78.6 from 72.3 in May and 71.8 in April.
Meanwhile, a separate report from the Labor Department showed a bigger than expected jump in US import prices in the month of May. The Labor Department said import prices surged up by 1% in May after plunging by 2.6% in April.
Fears of an emerging second wave of the epidemic in the US persist, with half a dozen states, including Texas and Arizona, facing rising infections of COVID-19. The Federal Reserve's indication earlier this week of a long road to recovery and rising COVID-19 cases in the United States have cast a pall over investor bets on a swift economic rebound.
Photoshop maker Adobe Inc rose after posting a better-than-expected quarterly profit, driven by strong demand for its cloud software.
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