As per provisional closing, the barometer S&P BSE Sensex jumps 700.03 points or 2.09% at 34,208.05. The Nifty 50 index rallied 210.7 points or 2.13% at 10,091.65.
Trading was volatile due to expiry of weekly index options on NSE. The Nifty opened lower at 9863.25, and hit an intraday low of 9845.05 in early trade. The index firmed up as the session progressed and crossed 10,000 mark in afternoon session. The momentum continued for the remaining part of the session. The index closed a tad below 10,100 mark.
Index pivotal Reliance Industries (up 2.99%) and index heavyweight HDFC Bank (up 3.69%) were key index movers.
The broader market was trading firm. The S&P BSE Mid-Cap index advanced 1.05%. The S&P BSE Small-Cap index gained 1.48%.
Buyers outnumbered the sellers. On the BSE, shares 1,816 rose and 697 shares fell. A total of 144 shares were unchanged. In Nifty 50 index, 40 stocks advanced while 10 stocks declined.
Foreign portfolio investors (FPIs) sold shares worth Rs 486.62 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 168.05 crore in the Indian equity market on 17 June, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 83,51,427 far with 4,49,027 deaths. India reported 1,60,384 active cases of COVID-19 infection and 12,237 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
Fitch Ratings has revised the Outlook on India's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Negative from Stable and affirmed the rating at 'BBB-'. The coronavirus pandemic has significantly weakened India's growth outlook for this year and exposed the challenges associated with a high public-debt burden. Fitch expects economic activity to contract by 5% in the fiscal year ending March 2021 (FY21) from the strict lockdown measures imposed since 25 March 2020, before rebounding by 9.5% in FY22.
Q4 Results Today:
Bajaj Consumer Care (up 2%), IRB Infrastructure Developers (up 2.77%), City Union Bank (up 2.71%), Thermax (down 0.04%), Amrutanjan Healthcare (up 2.72%), Brigade Enterprises (up 2.17%), CARE Ratings (down 2.18%), Gujarat State Fertilizers & Chemicals (up 1.1%), Hikal (down 0.63%), MOIL (down 1.4%), Thomas Cook (India) (up 1.08%), VST Tillers Tractors (down 0.4%) and Whirlpool of India (up 2.57%) are some of the companies that will announce their quarterly earnings today.
Earnings Impact:
Pidilite Industries declined 2.96% after the adhesive maker reported a 33% fall in consolidated net profit to Rs 157.53 crore on a 5.8% decline in net sales to Rs 1,544.68 crore in Q4 March 2020 over Q4 March 2019.
Muthoot Finance soared 17% after the NBFC major reported a 53% jump in consolidated net profit to Rs 829.37 crore on a 26.1% rise in total income to Rs 2,633.58 crore in Q4 March 2020 over Q4 March 2019. Consolidated loan assets under management increased by 22% YoY at Rs 46,871 crore for FY20. Capital adequacy ratio stood at 25.47% in FY20 as against 26.05% in FY19.
REC up 1.32%. The company reported 62.16% fall in consolidated net profit to Rs 473.99 crore on 18.45% rise in total income to Rs 7,905.34 crore in Q4 March 2020 over Q4 March 2019. The company's board has approved incorporation of two project specific special purpose vehicles (SPVs), as wholly owned subsidiary companies of REC Transmission Projects Company for development of intra-state transmission work in Madhya Pradesh, through tariff based competitive bidding, allocated by Government of Madhya Pradesh.
HEG gained 0.42%. The graphite electrode manufacturer reported a consolidated net loss of Rs 366 crore in Q4 March 2020 compared with net profit of Rs 524.42 crore in Q4 March 2019. Net sales slumped 72.2% to Rs 374.44 crore in Q4 March 2020 over Q4 March 2019. Consolidated pre-tax loss stood at Rs 482.59 crore in Q4 March 2020 compared with pre-tax profit of Rs 806.22 crore in Q4 March 2019.
Indraprastha Gas skid 5%. The gas supplier's consolidated net profit jumped 27.5% to Rs 290.76 crore on 0.6% increase in net sales to Rs 1,552.53 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax (PBT) soared 16.7% to Rs 388.41 crore in Q4 March 2020 as against Rs 332.81 crore in Q4 March 2019. Current tax expenses slipped 1.7% to Rs 86.51 crore in Q4 March 2020 as against Rs 88.01 crore in Q4 March 2019. The board recommended a dividend of Rs 2.80 per share for the financial year 2019-20.
Gulf Oil Lubricants India rose 1.66%. Net profit dropped 24.4% to Rs 35.94 crore on 17.5% decrease in net sales to Rs 359.68 crore in Q4 March 2020 over Q4 March 2019. Standalone profit before tax (PBT) tanked 37.2% to Rs 46.84 crore in Q4 March 2020 as against Rs 74.56 crore in Q4 March 2019. Current tax expenses slumped 57% to Rs 11.23 crore in Q4 March 2020 as against Rs 26.11 crore in Q4 March 2019. EBITDA skid 25.34% to Rs 55.40 in Q4 FY20 as compared to Rs 74.20 in Q4 FY19. The company has recommended a final dividend of Rs 7 per share for the financial year 2019-20.
Stocks in Spotlight:
Shares of select public sector undertakings (PSUs) rose after the government withdrew telecom dues demand from the PSU firms. Oil India (up 3.4%), Gujarat Narmada Valley Fertilizers & Chemicals (up 3.07%), Power Grid Corporation of India (up 3%) and GAIL India (up 0.99%) edged higher.
The media reported that the government on Thursday informed the Supreme Court it is willing to withdraw 96% of the Rs 4 lakh crore dues pending against various PSUs in the adjusted gross revenue (AGR) matter. Solicitor General Tushar Mehta told a bench comprising Justices Arun Mishra, Abdul Nazeer and M R Shah that "We have taken a decision since they are not in the business of providing tele services to general public, we are withdrawing the dues from these PSU's 96% demand now stands withdrawn."
Last week the apex court had pulled up the Department of Telecommunication (DoT) for raising a demand of Rs 4 lakh crore from various PSUs in the garb of its last year judgement on adjusted gross revenue (AGR) matter and threatened to begin contempt proceedings against the officers concerned.
Shares of three firms engaged in the metals and mining business gained 1.5% to 5.5% after the union government announced the launch of the auction process of 41 coal blocks for commercial mining. It was part of the series of announcements made by the Government of India, under the AatmaNirbhar Bharat Abhiyan. The Coal Ministry in association with FICCI launched the process for auction of these coal mines. As per media reports, the move will help to attract Rs 33,000 crore of capital investment in the country over next five to seven years.
Coal India (up 6.5%), Vedanta (up 4.8%) and Hindalco Industries (up 2.13%) witnessed demand.
Global Markets:
European markets were trading lower while most Asian shares ended with losses on Thursday as spiking coronavirus cases and prospects of new lockdowns erased earlier confidence about a global economic recovery.
Meanwhile, the EU is making it harder for Chinese and other foreign state-backed firms to buy stakes in European companies, as concerns grow over unfair competition amid COVID-19 pandemic. The European Commission, the executive arm of the EU, proposed on Wednesday, 17 June 2020 to have a bigger say when foreign state-backed firms buy stakes in European companies to a point where it could prohibit a merger.
US stocks finished lower after fluctuating between gains and losses on Wednesday, 17 June 2020, as investors elected to book recent profit amid concerns over a second wave of coronavirus infection and escalating geopolitical tensions pertaining to the Korean Peninsula against signs that the economy is recovering.
Investors continued to monitor disturbing coronavirus trends in several US states, including Florida and Texas, as well as a new outbreak in China and rising deaths in Brazil and India. They were also rattled by escalating geopolitical tensions pertaining to the Korean Peninsula after North Korea demolished an inter-Korean liaison office and rejected an offer by South Korea to send special envoys, vowing to send troops back to the border.
However, market losses capped after official data showed that mortgage applications surged 4% last week and were up 21% from the year-ago period, indicating a strong bounce-back for the housing market and US consumers.
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