Domestic indices settled with modest gains on Wednesday. The Nifty closed above the crucial 15,300 mark. IT stocks rallied while metals and PSU banks stocks corrected. Encouraging Q4 earnings and positive cues from other Asian stock markets boosted investors sentiment.
The barometer index, the S&P BSE Sensex, rose 379.99 points or 0.75% to 51,017.52. The Nifty 50 index gained 93 points or 0.61% at 15,301.45.
Bajaj Finserv (up 4.82%), Bajaj Finance (up 2.72%) and HDFC (up 1.55%) boosted the indices.
In the broader market, the BSE Mid-Cap index slipped 0.14% and the BSE Small-Cap index added 0.69%.
The market breadth was strong. On the BSE, 1,950 shares rose and 1,185 shares fell. A total of 146 shares were unchanged.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, soared 10.77% to 20.87. The May F&O contracts expire tomorrow, 27 May 2021.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 16,78,49,492 with 34,85,810 deaths. India reported 24,95,591 active cases of COVID-19 infection and 3,11,388 deaths while 2,43,50,816 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India reported 2,08,921 new COVID-19 cases and 4,157 deaths in the last 24 hours. India has conducted 22.17 lakh tests on Monday, the highest number of tests conducted in a single day.
Economy:
On Monday, 24 May 2021, the Commerce and Industry Ministry said that Foreign Direct Investments (FDI) in India grew 19% to $59.64 billion during 2020-21 on account of measures taken by the government on the fronts of policy reforms, investment facilitation and ease of doing business. The total FDI, including equity, re-invested earnings and capital, rose 10% to the "highest ever" of $81.72 billion during 2020-21 as against $74.39 billion in 2019-20.
On Tuesday, 25 May 2021, the State Bank of India (SBI) in its "Ecowrap" report stated that India's GDP may have contracted less than earlier estimated in FY21. While the Central Statistics Office (CSO) in February 2021 estimated that the country has contracted by 8% in FY21, SBI now projects the Indian economy actually may have shrank by 7.3%.
SBI report said: "Based on quarterly GDP numbers in FY21 and full year FY21 GDP estimates, Q4 GDP was projected to reveal a contraction of 1.1%. Based on SBI Nowcasting model the forecasted GDP growth for Q4 would be around 1.3% (with downward bias). We now expect GDP decline for the full year to be around -7.3% (our earlier prediction: -7.4%)."
Cyclone Yaas Update:
Super Cyclone Yaas, which has been categorised as the "very severe cyclonic storm", hit the Odisha coast today morning, 26 May 2021. The India Meteorological Department (IMD) said that the landfall process began sometime around 9 AM and hit the Dhamra port in Bhadrak district, Odisha. Over 10 lakh people have been relocated to storm shelters in Odisha and West Bengal. While other states such as Andhra Pradesh, Tamil Nadu and Andaman and Nicobar islands have also put a contingency plan in action, it is Odisha that is likely to be at the centre of the devastating storm. In terms of severity, it may be slightly lower than Cyclone Tauktae, but the IMD has warned that it will take at least another 24 hours before Cyclone Yaas degenerates.
Numbers to Watch:
MCX Gold futures for 4 June 2021 settlement rose 0.38% to Rs 49,054.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.12% to 89.75.
In the commodities market, Brent crude for July 2021 settlement rose 2 cents at $68.67 a barrel. The contract rose 19 cents, or 0.28% to settle at $68.65 a barrel in the previous trading session.
Foreign Markets:
Most European shares declined while Asian stocks advanced on Wednesday. Markets in Indonesia, Singapore and Thailand were closed for a holiday.
U.S. stocks closed slightly lower on Tuesday following a rally in the prior session as investors continue to try and assess the route of inflation.
Investors are awaiting a speech from Federal Reserve Vice Chair Randal Quarles on Wednesday as some concerns surrounding inflation and potential tapering continue to linger.
Buzzing Indian Segment:
The Nifty IT index rose 1.76% to 26,857.30. The index has risen 3.72% in four sessions.
Coforge (up 4.43%), Larsen & Toubro Infotech (up 2.58%), Infosys (up 2.45%), Wipro (up 1.87%), Mphasis (up 1.84%), Mindtree (up 1.76%), Tech Mahindra (up 1.52%), TCS (up 1.41%) and HCL Technologies (up 0.57%) surged.
Earnings Impact:
Berger Paints India rose 1.66% after paint maker's consolidated net profit surged 101% to Rs 208.59 crore in Q4 FY21 as against Rs 103.72 crore in Q4 FY20. Revenue from operations increased 49.5% year-on-year (YoY) to Rs 2,026.09 crore during the quarter. EBIDTA (excluding other income) for the quarter ended 31 March 2021 increased by 61% to Rs 335.57 crore from Rs. 208.42 crore in the corresponding quarter of the last financial year. Profit before tax in Q4 FY21 stood at Rs 283.37 crore, up 78% from Rs 159.21 crore in Q4 FY20.
Manappuram Finance rose 0.47% after the company's consolidated net profit increased 18.6% to Rs 468.33 crore on 1.1% rise in total revenue from operations to Rs 1622.32 crore in Q4 FY21 over Q4 FY20. Revenue from the gold loan business stood at Rs 1,346.48 crore (up 10.8% YoY) while revenue from microfinance business was Rs 283.77 crore (down 29.5% YoY) during the quarter. Profit before tax in Q4 FY21 stood at Rs 622.08 crore, up by 15.8% from Rs 534.07 crore in Q4 FY20.
Lux Industries jumped 16.21% after the company's consolidated net profit surged 118% to Rs 90.64 crore in Q4 FY21 as against Rs 41.49 crore in Q4 FY20. Net sales increased 48.18% year-on-year (YoY) to Rs 595.05 crore. EBITDA rose 95% to Rs 128.96 crore in Q4 FY21 from Rs 66.08 crore in Q4 FY20. EBITDA margin was at 21.45% as on 31 March 2021 as against 16.38% as on 31 March 2020.
VIP Industries lost 0.74% after the company's consolidated net loss stood at Rs 3.78 crore in Q4 FY21 compared with net profit of Rs 9.52 crore in Q4 FY20. Net sales skid 21.77% to Rs 243 crore in Q4 FY21 as against Rs 310.66 crore in Q4 FY20. The revenue was impacted due to COVID-19. Pre-tax loss stood at Rs 5.72 crore in Q4 FY21 as against a pre-tax profit of Rs 10.45 crore in Q4 FY20.
Goldiam International rose 1.27% to Rs 434.55. On a consolidated basis, the company reported a net profit of Rs 9.2 crore in Q4 FY21, higher than net profit of Rs 2.83 crore in Q4 FY20. During Q4 FY21, total income grew 46.3% year-on-year (YoY) to Rs 131.80 crore as major US retailers started restocking inventory as market demand increased with changing consumer behaviour along with rise in disposable income due to COVID-19 restriction.
The board has recommended a final dividend of Rs 3 per equity share. Separately, the board of Goldiam Jewellery, wholly-owned subsidiary of the company, at its meeting held on 25 May 2021 has recommended a final dividend of Rs 100 per equity share.
Stove Kraft fell 3.3%. The company reported a net profit of Rs 19.2 crore in Q4 FY21 as against a net loss of Rs 10.4 crore in Q4 FY20. Revenues increased by 53% year-on-year (YoY) to Rs 235.4 crore during the quarter. The company reported EBITDA of Rs 25.2 crore in the fourth quarter. It had reported an EBITDA loss of Rs 1.7 crore in the same period last year. EBITDA margin was at 10.7% as on 31 March 2021.
AstraZeneca Pharma India rose 0.71%. The pharmaceutical company's net profit surged 184.95% to Rs 27.27 crore on 7.88% increase in revenue from operations to Rs 210.25 crore in Q4 March 2021 over Q4 March 2020. Profit before tax soared 175.67% to Rs 36.83 crore in Q4 FY21 as against Rs 13.36 crore in Q4 FY20.
Gati advanced 2.18%. On a consolidated basis, Gati reported net loss of Rs 173.40 crore in Q4 FY21, higher than net loss of Rs 70.60 crore in Q4 FY20. Net sales rose 9.8% to Rs 406.64 crore in Q4 FY21 from Rs 370.09 crore in Q4 FY20. Pre-tax loss stood at Rs 183.78 crore in Q4 FY21, higher than pre-tax loss of Rs 39.48 crore in Q4 FY20.
Thermax jumped 3.73% after the company's consolidated net profit surged 175% to Rs 107 crore in Q4 FY21 from Rs 39 crore in Q4 FY20. The Group posted a consolidated operating revenue of Rs 1,575 crore in the fourth quarter of FY 2020-21 as against Rs 1,323 crore reported in the same period last year, up 19% year-on-year (YoY). On the segmental front, energy business revenue was at Rs 1,175 crore (up 11.8% YoY), environment business revenue was at Rs 302 crore (up 51.8% YoY) and chemical business revenue stood at Rs 119 crore (up 24% YoY) in the fourth quarter.
Bayer CropScience rose 0.94%. The company's net profit surged 96.50% to Rs 61.90 crore on 59.95% jump in revenue from operations to Rs 733.70 crore in Q4 March 2021 over Q4 March 2020. Profit before tax soared 210.50% to Rs 79.80 crore in Q4 FY21 as against Rs 25.70 crore in Q4 FY20. The board of Bayer CropScience on 25 May 2021, had recommended a final dividend of Rs 25 per share.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
