Domestic equity indices rallied for the second session on Tuesday. All the sectoral indices on the NSE ended in the green. The barometer index, the S&P BSE Sensex, jumped 557.63 points or 1.15% at 48,944.14. The Nifty 50 index added 168.05 points or 1.16% at 14,653.05. Both the indices have risen about 2.2% in two consecutive sessions.
Larsen & Toubro (up 3.33%), Reliance Industries (up 2.66%), HDFC Bank (up 2.39%) and ICICI Bank (up 1.36%) boosted the indices.
In the broader market, the BSE Mid-Cap index rose 1.04% and the BSE Small-Cap index gained 1.49%.
The market breadth was strong. On the BSE, 1951 shares rose and 1004 shares fell. A total of 164 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 14,78,83,829 with 31,20,894 deaths. India reported 28,82,204 active cases of COVID-19 infection and 1,97,894 deaths while 1,45,56,209 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
For the third day in a row, Mumbai city on Monday reported new COVID-19 cases below 6,000. With the addition of 3,876 new cases, the total number of COVID cases in the maximum city has increased to 6,31,527. 9,150 people have been discharged from hospitals post-recovery. At present, there are 70,373 active cases in the city.
Economy:
The Reserve Bank of India (RBI) said that the post of the MD & CEO or whole-time director (WTD) cannot be held by the same incumbent for more than 15 years.
The individual will be eligible for re-appointment in the same bank, if considered necessary and desirable by the board, after a minimum gap of three years, subject to meeting other conditions, it added.
The central bank further said that no one can be a non-executive director either beyond age 75. The norms won't be applicable to state-run banks and foreign banks that operate as branches.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 6.055% as compared with 6.038% 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 74.66, compared with its close of 74.7350 during the previous trading session.
MCX Gold futures for 4 June 2021 settlement rose 0.02% to Rs 47,472.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.16% to 90.95.
In the commodities market, Brent crude for June 2021 settlement rose 27 cents at $65.92 a barrel. The contract fell 46 cents, or 0.70% to settle at $65.65 a barrel in the previous trading session.
Foreign Markets:
European markets were trading lower while Asian shares closed on a mixed note on Tuesday as the US Federal Reserve's meeting this week kept investors on edge.
In US, the S&P 500 and Nasdaq closed at record highs on Monday, fueled by Tesla Inc and other heavyweight growth stocks ahead of a deluge of earnings reports this week.
The US Federal Reserve, which meets on Tuesday and Wednesday, is expected to defend its policy of letting inflation run hot, while assuring markets it sees the pick-up in prices as only temporary. Chairman Jerome Powell will host a press conference Wednesday afternoon to discuss the Federal Open Market Committee's decision.
Stocks in Spotlight:
State Bank of India (SBI) rose 2.48%. The board of SBI is scheduled to meet on 28 April 2021 to consider long term fund raising of up to $2 billion, through a public offer/private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2021-22.
Maruti Suzuki India fell 1.24%. The auto maker reported a 9.7% decline in net profit to Rs 1,166.10 crore on a 33.6% increase in net sales to Rs 22,958.60 crore in Q4 FY21 over Q4 FY20. The car major said that the fall in net profit was on account of lower non-operating income owing to mark-to-market loss on invested surplus. The company sold a total of 492,235 vehicles during the quarter, higher by 27.8% compared to the same period previous year. The operating profit for the quarter was at Rs 1,250.1 crore, a growth of 72.8% over the same period previous year on account of higher sales volume and cost reduction efforts despite steep commodity price increase. Operating profit margin rose 120 bps to 5.4% in Q4 FY21 from 4.2% in Q4 FY20. The company said that improved capacity utilization, cost reduction efforts, lower sales promotion expenses and increase in selling prices aided margin improvement.
Symphony surged 7.27% after the company's consolidated net profit jumped 58% to Rs 63 crore on 36% rise in revenue from operations to Rs 339 crore in Q4 FY21 over Q4 FY20. EBITDA improved 41% to Rs 90 crore in the fourth quarter from Rs 64 crore reported in the same period last year. Profit before tax (PBT) in Q4 March 2021 stood at Rs 82 crore, up by 60% from Rs 51 crore recorded in Q4 March 2020.
Hindustan Zinc jumped 4.78% after the company reported 85% rise in net profit to Rs 2,481 crore on 56% increase in revenue from operations to Rs 6,725 crore in Q4 FY21 over Q4 FY20. The increase in revenue was led by higher metal & silver volumes, higher zinc, lead & silver prices. Zinc sales volume increased 15% y-o-y and lead by 29% y-o-y in line with higher production and robust demand.
HDFC Life Insurance Company declined 3.71%. The insurance company reported a 2.38% rise in consolidated net profit to Rs 319.06 crore in Q4 FY21 from Rs 311.65 crore in Q4 FY20. Net premium income increased by 22.85% to Rs 12,869.55 crore in Q4 FY21 over Q4 FY20. The company's net income from investments stood at Rs 6,015.42 crore in Q4 March 2021 compared with loss of Rs 10,229.92 crore in Q4 March 2020. Profit before tax in Q4 FY21 stood at Rs 310.21 crore, up by 9.07% from Rs 284.41 crore in Q4 FY20.
SBI Cards and Payment Services rose 3.94%. On a standalone basis, the company's net profit soared 109.95% to Rs 175.42 crore on 1.68% decline in total income to Rs 2,468.14 crore in Q4 FY21 over Q4 FY20. Return on average assets (ROAA) stood at 2.6% in Q4 FY21 as against 1.3% for Q4 FY20. Return on average equity (ROAE) was at 11.2% during Q4 FY21 as against 6.5% for Q4 FY20. During the quarter, Capital Adequacy Ratio stood at 24.8% compared with 22.4% in Q4 FY20. Card-in-force grew 12% to 1.18 crore as of Q4 FY21 from 1.05 crore as of Q4 FY20. Spends jumped 11% to Rs 35,943 crore in Q4 FY21 as against Rs 32,429 crore for Q4 FY20. Market share (available till February) for Card-in-force segment stood at 19% for FY21 from 18.3% in FY20. The Spends segment reported a market share of 19.5% for FY21 over 17.9% during FY20.
Castrol India jumped 2.12% after the lubricants maker reported 94.6% jump in net profit to Rs 243.60 crore on 65.5% increase in net sales to Rs 1138.70 crore in Q1 March 2021 as compared to Q1 March 2020. Profit before tax in the first quarter stood at Rs 332.30 crore, up by 96% from Rs 169.50 crore in the same period last year.
Delta Corp fell 3.03%. The company's consolidated net profit soared 100.73% to Rs 57.65 crore on 16.81% rise in net sales to Rs 211.34 crore in Q4 FY21 over Q4 FY20. On a consolidated basis, the company reported a net loss of Rs 24.10 crore in the year ended March 2021 compared with net profit of Rs 185.63 crore in the year ended March 2020. Net sales fell 45.84% to Rs 418.87 crore in the year ended March 2021 over the year ended March 2020. The board has recommended a final dividend of Re 1 per equity share.
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