As per the provisional closing data, the barometer index, the S&P BSE Sensex, skid 485.82 points or 0.92% at 52,568.18.
The Nifty 50 index slipped 151.75 points or 0.96% at 15,727.35. After opening at 15,855.40 mark, the 50-unit index declined as the session progressed and hit the day's low of 15,682.90 in mid-afternoon trade. Value buying in late trade pushed the index above 15,700 mark.
Selling was broad based. The S&P BSE Mid-Cap index fell 0.37%. while the S&P BSE Small-Cap index was lost 0.09%.
Sellers outnumbered buyers. On the BSE, 1,474 shares rose and 1,715 shares fell. A total of 141 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 18,50,78,882 with 40,01,791 deaths. India reported 4,60,704 active cases of COVID-19 infection and 4,05,028 deaths while 2,98,43,825 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India on Thursday reported 45,892 new COVID-19 cases in the last 24 hours, according to data from the health ministry. Thursday is the 30th consecutive day when India reported less than one lakh new coronavirus cases. The active cases have now come down below 5 lakh.
Economy:
Fitch Ratings, on Wednesday, 7 July 2021, cut India's growth forecast to 10% for the current fiscal, from 12.8% estimated earlier, due to slowing recovery post second wave of COVID-19, and said rapid vaccination could support a sustainable revival in business and consumer confidence.
In a report, the global rating agency said the challenges for banking sector posed by the coronavirus pandemic have increased due to a virulent second wave in the first quarter of the financial year ending March 2022 (FY22). "Fitch Ratings revised down India's real GDP for FY22 by 280 bp to 10%, underlining our belief that renewed restrictions have slowed recovery efforts and left banks with a moderately worse outlook for business and revenue generation in FY22," it said.
Politics:
Forty three ministers were sworn in to the Union Council of Ministers on Wednesday (7 July 2021) as Prime Minister Narendra Modi inducted many new faces. They include 15 Cabinet Ministers and 28 Ministers of State.
BJP leaders Narayan Rane, Jyotiraditya Scindia, Sarbananda Sonowal, Dr Virendra Kumar, Ashwini Vaishnaw and Bhupendra Yadav and R C P Singh of JD(U) and Pashupati Kumar Paras of LJP were sworn in as Cabinet Ministers. Union Ministers Hardeep Singh Puri, Mansukh Mandaviya, Kiren Rijiju, Raj Kumar Singh, G Kishan Reddy, Parshottam Rupala and Anurag Thakur were also elevated to the rank of Cabinet Ministers.
BJP MPs Pankaj Chaudhury, S P Singh Baghel, Rajeev Chandrasekhar, Sobha Karandlaje, Bhanu Pratap Singh Verma, Darshana Vikram Jardosh, Meenakshi Lekhi, Annapurna Devi, A Narayanaswamy and Kaushal Kishore, Ajay Bhatt, B L Verma, Ajay Kumar, Chauhan Devusinh and Anupriya Patel of Apna Dal were sworn in as the Ministers of State. Besides, BJP leaders Kapil Patil, Subhash Sarkar, Bharati Pawar, Bishweswar Tudu, Shantanu Thakur, John Barala, L Murugan and Nisith Pramanik and others also took oath as Ministers of State.
This is the first Cabinet expansion of the Narendra Modi government in the second tenure.
Nifty Result Today:
IT major Tata Consultancy Services (down 0.51%) will announce its quarterly result today.
Stocks in Spotlight:
Macrotech Developers advanced 3.65% after the company said that it has clocked pre-sales of Rs 957 crore in Q1 FY22, up by 88% from Rs 509 crore in Q1 FY21. The company's pre-sales are, however, lower by 62% compared with Rs 2,531 crore in Q4 FY21. Customer collections stood at Rs 1,714 crore in the first quarter of the current financial year, higher by 346% compared with the corresponding period a year before. Sequentially, the collections have declined by 18% from Rs 2,089 crore in Q4 FY21. The real estate firm has reduced consolidated net debt by Rs 3,600 crore during the quarter. Lodha has entered into joint development agreements with two new projects totaling 1.5 million sq ft of saleable area.
Tata Motors declined 3.66%. The auto major said that the Group's global wholesales in Q1 FY22, including Jaguar Land Rover, were at 2,14,250 units., higher by 134%, as compared to Q1 FY21. Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range in Q1 FY22 were at 52,470 units., higher by 355%, over Q1 FY21. Global wholesales of all passenger vehicles in Q1 FY22 were at 1,61,780 units., higher by 102% as compared to Q1 FY21. Global wholesales for Jaguar Land Rover were 97,141 vehicles. Jaguar wholesales for the quarter were 21,373 vehicles, while Land Rover wholesales for the quarter were 75,768 vehicles.
Kalyan Jewellers India rose 0.58% after the company's revenue achievement in India for Q1 FY22 was higher by approximately 190% when compared to Q1 FY21. The company said that overall revenue achievement in India for the recently concluded quarter was approximately 55% of Q1 FY 2020. A significant portion of the company's revenue for Q1 FY 2022 was booked during the month of April, during which many of the showrooms in non-south markets either remained closed or were operating with restrictions resulting in a higher share of business accruing from south markets, as well as from the gold division. Partly as a result of this phenomenon as well as the continuing impact of the customs duty cut, gross margin in India remained muted and below our historical levels.
Bajaj Healthcare jumped 7.11%. Bajaj Healthcare has received a licence from DRDO to Manufacture and Market of 2-Deoxy-D-Glucose (2-DG) as approved medication for the treatment of COVID-19 patients.
RailTel Corporation of India rose 0.49% after the company received a five-year deal worth Rs 23.43 crore from Sagar Cable Network for providing multicast drop and carry with 1.5G capacity at 66 locations.
Alembic Pharma rose 0.21%. The drug maker said that it has received final approval from the US Food & Drug Administration (USFDA) for its ANDA for desipramine hydrochloride tablets USP, 10 mg, 25 mg, 50 mg, 75 mg, 100 mg, and 150 mg. The approved abbreviated new drug application (ANDA) is therapeutically equivalent to the reference listed drug product (RLD), Norpramin tablets, 10 mg, 25 mg, 50 mg, 75 mg, 100 mg, and 150 mg, of Validus Pharmaceuticals.
Shyam Metalics rose 0.75%. On a consolidated basis, Shyam Metalics and Energy reported net profit to Rs 387.70 crore in Q4 FY21, steeply higher than net profit of Rs 79.93 crore in Q4 FY20. Revenue from operations increased by 116.90% to Rs 2,350.51 crore during the quarter. Profit before tax in Q4 FY21 stood at Rs 549.16 crore, up 648.89% from Rs 73.33 crore in Q4 FY20.
K P R Mill rallied 3.99% after the company said that its board will consider a stock split and Q1 results on Tuesday, 27 July 2021.
Global Markets:
US Dow futures tumble 454 points, indicating a weak opening in the US stocks today.
The yield on the benchmark 10-year US Treasury note tumbled to 1.26% on Thursday, reflecting investors' anxiety about the economic outlook and new concerns about the highly contagious Delta variant of Covid-19.
European markets fell across the board while most Asian stocks declined on Thursday.
Chinese tech stocks in Hong Kong came under pressure after regulatory fears resurfaced. Beijing recently announced a stepping up in oversight on Chinese listings in the U.S., many of whom are tech companies. That came after a recent crackdown on ride-hailing giant Didi and other tech firms, which once again raised concerns over the regulatory outlook.
In the US, the S&P 500 rose to a fresh record on Wednesday as investors poured back into trusty mega-cap technology stocks.
The US Federal Reserve's minutes from its June 15-16 meeting, during which it held short-term interest rates near zero but also indicated that it might be adjusting policy otherwise in the months ahead, revealed the central bank discussed tapering but was in no rush to start the process.
Investors also likely continued to monitor the Covid situation regionally. Japan will declare a Covid-19 state of emergency in Tokyo to run throughout the Olympic Games. Yoshihide Suga, prime minister, will hold a press conference on Thursday evening to announce the measures, as increased prevalence of the Delta variant drives a rapid spread of coronavirus infections.
Meanwhile, Australia's New South Wales state announced Wednesday a week-long extension of Sydney's lockdown.
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