Bajaj Group shares were in demand. Bajaj Auto (up 7%), Bajaj Finance (up 5.67%) and Bajaj Finserv (up 4.67%) advanced.
The Nifty opened higher at 10,318.75 and hit a high of 10,380 level in morning trade. Profit booking at higher level dragged index to 10,277.60 mark in mid-morning trade. It firmed up once again in afternoon trade to hit the day's high of 10,393.65. Profit booking in the final hour dragged the index below 10,350.
The broader market ended with strong gains. The S&P BSE Mid-Cap index advanced 2.2% while the S&P BSE Small-Cap index gained 1.45%.
Buyers outnumbered sellers. On the BSE, shares 1,883 rose and 866 shares fell. A total of 168 shares were unchanged. In Nifty 50 index, 37 stocks advanced while 13 stocks declined.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 89,52,428 far with 4,68,331 deaths. India reported 1,74,387 active cases of COVID-19 infection and 13,699 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
Q4 Results Today:
Aegis Logistics (up 4.32%), Balaji Amines (up 1.9%), Morepen Laboratories (up 4.4%), Sudarshan Chemical Industries (up 3.5%), The Investment Trust Of India (down 4.96%) and UFO Moviez India (up 1%) are some of the companies that will announce their quarterly earnings today.
Earnings Impact:
Power Grid Corporation of India rose 4.4% after the company reported an 8.2% rise in consolidated net profit to Rs 3,313.47 crore on a 6.4% rise in net sales to Rs 10,148.26 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax and regulatory deferral account balances stood at Rs 3357.14 crore in Q4 March 2020, rising 2.7% from Rs 3266.89 crore posted in Q4 March 2019.
Balkrishna Industries advanced 1.8% after the tyre maker reported a 42.3% rise in consolidated net profit to Rs 264.70 crore on 1.2% rise in revenue from operations to Rs 1,372.27 crore in Q4 FY20 over Q4 FY19. The management said, During February 2020, we had indicated that we should be able to cross 2,00,000 MT sales volume for FY20. We have crossed this benchmark and have achieved the sales volume of 201,760 MT for FY20. This is despite shutdown of manufacturing operations and dispatches across all our plants from 25th March 2020 due to lockdown on account of COVID-19. After resumption of manufacturing activities and dispatches in later part of April 2020, we were gradually able to ramp up our activities and have gradually gained normalcy in our manufacturing activities as well as dispatches to a large extent. If everything remains what it is, as of today, performance for FY21 should be at similar levels, of what has been achieved during FY20.
VRL Logistics fell 1.59% after the company's net profit slumped 89.6% to Rs 2.14 crore on 2.9% decline in net sales to Rs 497.83 crore in Q4 FY20 over Q4 FY19. EBITDA fell 4.5% to Rs 59.06 crore in Q4 FY20 from Rs 61.87 crore in Q4 FY19. EBITDA margin stood at 11.81% in Q4 March 2020 as against 12.02% in Q4 March 2019. Profit before tax (PBT) in Q4 March 2020 stood at Rs 3.27 crore, down by 90% from Rs 32.64 crore in Q4 March 2019.
Punjab National Bank rallied 3.7%. The bank reported a net loss of Rs 697.20 crore in Q4 March 2020, lower than net loss of Rs 4,749.64 crore in Q4 March 2019. Total income rose 11.3% year-on-year (Y-o-Y) to Rs 16,388.32 crore in Q4 FY20. Provisions and contingencies fell 51.3% to Rs 4,901.31 crore in Q4 March 2020 from Rs 10,071.11 crore in Q4 March 2019. The bank has made a total provision of Rs 383.19 crore in 9 accounts during the quarter. With respect to the impact of COVID-19 on its business operations, the bank said that the situation continues to be uncertain and it is evaluating the situation on ongoing basis. It added that the major identified challenges for the bank would arise from eroding cash flows and extended working capital cycles.
Akzo Nobel India gained 2.45%. The paint maker's consolidated net profit slipped 23.1% to Rs 54.08 crore on 17.6% decline in net sales to Rs 581.27 crore in Q4 March 2020 over Q4 March 2019. Meanwhile, the BMW Group has chosen Akzo Nobel to be a trusted supplier of vehicle refinish products and services to a large part of its distribution network around the world. The deal came into effect on 1 February 2020. Covering 44 locations, the agreement means that the company's premium Sikkens and Lesonal brands are now approved for paint repairs of BMW and Mini passenger cars at authorized dealers, repairers, importers and national BMW Group branches.
LIC Housing Finance tumbled 5.2% after the housing financier's consolidated net profit tanked 39.1% to Rs 424.31 crore on 5.1% rise in total income to Rs 4,903.54 crore in Q4 March 2020 over Q4 March 2019. The extent to which the COVID-19 pandemic will impact the results of company's business and financials in future, as the same will be dependent on future developments, which at present are extremely uncertain, the company said.
Stocks in Spotlight:
Glenmark Pharmaceuticals advanced 27% after the company launched antiviral drug Favipiravir, under the brand name FabiFlu, for the treatment of mild to moderate COVID-19 patients. Priced at Rs 103 per tablet, the prescription-based drug will be available as a 200 mg tablet at an MRP of Rs 3,500 for a strip of 34 tablets.
Glenmark said that Favipiravir is also undergoing trials in other countries to test its efficacy as a COVID-19 treatment. The company further added that the approval for favipiravir in India was granted based on "evaluation of data".
Cipla gained 3% after the company announced the launch of remdesivir under its brand name CIPREMI. The U.S. FDA issued an Emergency Use Authorization (EUA) to Gilead Sciences Inc. for emergency use of remdesivir for the treatment of hospitalized 2019 coronavirus disease (COVID-19) patients.
Piramal Enterprises (PEL) rose 4%. PEL's pharma solutions business has entered into a pact with G&W Laboratories Inc. to acquire its solid oral dosage drug product manufacturing facility located in Sellersville, Pennsylvania. PEL, through one of its affiliates, would acquire at closing a 100% stake in the entity that operates the facility and owns the related real estate.
Alembic Pharmaceuticals fell 1.2%. The company said it has received US drug regulator's tentative approval for Rivaroxaban tablets in 10 mg, 15 mg, and 20 mg strengths. The approved ANDA is therapeutically equivalent to Xarelto tablets of Janssen Pharmaceuticals. The drug is indicated for the reduction of the risk of stroke and systemic embolism in patients with nonvalvular atrial fibrillation; the treatment of deep vein thrombosis (DVT).
Indiabulls Housing Finance soared 20% after multiple bulk deals in the counter on Friday, 19 June. According to the bulk deal data available on NSE, Morgan Stanley Asia (Singapore) bought 45,22,602 shares, or 1.06% stake, of Indiabulls Housing Finance at Rs 184.76 per share on Friday (19 June 2020). Separately, iShares Emerging Markets Dividend UCITS ETF bought 25,69,494 shares (0.60% equity) in Indiabulls Housing Finance at Rs 189.51 per share and iShares Emerging Markets Dividend ETF bought 45,58,746 shares (1.07% equity) in company at Rs 189.51 per share on Friday. Meanwhile, Integrated Core Strategies (Asia) sold 21,69,410 shares (0.51%) in Indiabulls Housing Finance at Rs 202.12 per share on Friday. The scrip jumped 115.85% in the past one month.
Global Markets:
Most shares in Europe and Asia declined on Monday as investors react to a surge in coronavirus cases in the States, and growing concerns over a rise in infections in Germany.
The World Health Organization (WHO) reported a record single-day total of new coronavirus cases around the world on Sunday, and said that the coronavirus pandemic has entered a "new and dangerous phase."
Meanwhile in Europe, Germany's Robert Koch Institute for public health has said the coronavirus reproduction rate (an indicator of how many people a person who has the coronavirus could be expected to go on to infect, on average) jumped to 2.88 on Sunday, 21 June 2020 up from 1.79 a day earlier.
The US stocks finished mostly lower after erasing early gains on Friday, 19 June 2020, as risk sentiments dampened after reports showing a surge in coronavirus infections in several states in America and the World Health Organization's warning on the pandemic. Investors were optimistic about economic recovery in the wake of recent strong data on employment and retail sales. Meanwhile, reports that Beijing is planning to buy more agricultural goods from the United States, in line with the phase one trade deal the two countries agreed to in January also boosted shares.
However, stocks reversed initial gains and ended lower, as worries about growing COVID-19 infections. Parts of the country have been dealing with thousands of new infections, which is spooking businesses, economists and investors.
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