The market reversed gains and hit the day's low in afternoon trade amid reports that an Indian Army Colonel and two Army jawans were killed in action during a clash with Chinese troops in the Galwan Valley, Ladakh. Galwan Valley is one of the four standoff points in the eastern Ladakh sector. The face-off took place during the de-escalation process that has been underway. Indian Army will brief the media at 2 pm today.
At 13:20 IST, the barometer index, the S&P BSE Sensex fell 85.33 points or 0.26% at 33,143.47. The Nifty 50 index fell 59.95 points or 0.61% at 9,753.75.
Trading was highly volatile. The Nifty surged 232.45 points to hit the day's high of 10,046.15 in early trade on strong global cues. It slumped 317.65 points from the day's high to hit an intraday low of 9,728.50 in afternoon trade.
The broader market turned negative. The S&P BSE Mid-Cap index fell 0.59%. The S&P BSE Small-Cap index slipped 0.65%.
Sellers outpaced buyers. On the BSE, shares 1,109 rose and 1,302 shares fell. A total of 138 shares were unchanged. In Nifty 50 index, 17 stocks advanced while 32 stocks declined.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 80,35,364 far with 4,36,918 deaths. India reported 1,53,178 active cases of COVID-19 infection and 9,900 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
India's merchandise exports dipped 36.5% to $19.05 billion in May 2020 over a year ago. Meanwhile, merchandise imports also declined 51% to $22.20 billion. The trade deficit fell 79.5% to $3.15 billion in May 2020 from $15.36 billion in May 2019. Merchandise exports in rupees plunged 31.1% to Rs 1,44,166 crore, while imports rose declined 46.9% to Rs 1,67,978 crore in May 2020 over May 2019. The trade deficit eased to Rs 23,812 crore in May 2020 compared with Rs 1,07,168 crore in May 2019.
As per the data released by the Reserve Bank of India, India's services exports declined 8.9% to $16.45 billion in April 2020 over April 2019. Meanwhile, India's services imports dipped 18.4% to $9.30 billion in April 2020. India's services trade surplus improved 7.3% to $7.15 billion in April 2020 from $6.66 billion in April 2019.
Gainers & Losers:
JSW Steel (up 3.16%), UPL (up 3.10%), Infosys (up 2.76%), Hindalco Industries (up 2.13%) and HDFC (up 2.02%) were top gainers in Nifty 50 index.
Axis Bank (down 6.44%), IndusInd Bank (down 6.18%), Gail (India) (down 3.46%), Bharti Infratel (down 2.80%) and IOCL (down 2.26%) were top losers in Nifty 50 index.
Q4 Results Today:
Hindustan Petroleum Corporation (up 3.15%), NMDC (up 0.12%), Bank of Maharashtra (up 2.13%), IPCA Laboratories (up 0.10%), Globus Spirits (up 0.83%), Navin Fluorine International (up 1.37%), Schneider Electric Infrastructure (down 0.60%), Ratnamani Metals & Tubes (up 0.08%) and Bliss GVS Pharma (down 0.99%) are some of the companies that will announce their quarterly earnings today.
Earnings Impact:
Tata Motors tumbled 6.02% after the automaker posted a consolidated net loss of Rs 9,894.25 crore in the Q4 March 2020 as compared to a consolidated net profit of Rs 1,117.48 crore in Q4 March 2019. Net sales during the quarter fell 27.7% year-on-year (Y-o-Y) to Rs 61,949.39 crore. Jaguar Land Rover's (JLR) retail sales declined 12% Y-o-Y to 508.70 thousand units in FY20. Tata Motors' (TML) commercial vehicle sales contracted by 22% to 360.80 thousand units while the passenger vehicle sales fell 25% to 148.80 thousand units in FY20 over FY19. With respect to future outlook, the company said that Q1 FY21 is expected to be significantly weaker in both JLR and TML with the full impact of lockdowns being reflected in the results. Actions are underway to significantly deleverage the Tata Motors Group with JLR to become sustainably cash positive from FY22.
CSB Bank rallied 5.26%. The private lender reported a net loss of Rs 59.68 crore in Q4 FY20, which is significantly lower as compared to the net loss of Rs 150.64 crore reported in Q4 FY19. Total income rose 18.9% to Rs 475.49 crore after net interest income jumped 31% to Rs 157.54 crore in Q4 March 2020 over Q4 March 2019. On the asset quality front, the ratio of gross NPAs to gross advances stood at 3.54% as on 31 March 2020 as against 3.22% as on 31 December 2019 and 4.87% as on 31 March 2019. The ratio of net NPAs to net advances stood at 1.91% as on 31 March 2020 as against 1.98% as on 31 December 2019 and 2.27% as on 31 March 2019. The bank's deposit increased 4.4% to Rs 15,791 crore as on 31 March 2020 from Rs 15,124 crore as on 31 March 2019. Net advances rose 7.1% to Rs 11,366 crore in FY20 from Rs 10,615 crore in FY19.
Shoppers Stop dropped 5.81% after it reported consolidated net loss of Rs 127.22 crore in Q4 March 2020 as against a net profit of Rs 6.47 crore in Q4 March 2019. Total income fell 10.63% to Rs 731.76 crore in Q4 March 2020 over Q4 March 2019. Shoppers Stop said that the retail industry as a whole has been adversely impacted by the spread of COVID-19. The company faces significant challenges due to COVID-19, which has impacted the operations of the company adversely starting from the month of March 2020 onwards, particularly by way of store closures due to complete lockdown.
Ashoka Buildcon jumped 3.48% after the construction firm reported consolidated net profit of Rs 134.56 crore in Q4 March 2020 compared with net loss of Rs 10.24 crore in Q4 March 2019. Net sales of Q4 March 2020 stood at Rs 1,584.22 crore, declining 0.79% from Rs 1,596.81 crore in the same period last year. Consolidated profit before tax stood at Rs 179.84 crore in Q4 March 2020, up 228.10% from Rs 54.81 crore in Q4 March 2019. Total tax expense declined 50.37% to Rs 33.15 crore in Q4 March 2020 from Rs 66.8 crore in Q4 March 2019. On a standalone basis, net profit surged 68% to Rs 164.25 crore on 4% decline in net sales to Rs 1,254.75 crore in Q4 March 2020 over Q4 March 2019. Standalone EBITDA jumped 20% to Rs 263.50 in Q4 March 2020 from Rs 219.50 crore in Q4 March 2019. EBITDA margin improved to 20.4% in Q4 March 2020 from 16.3% in Q4 March 2019.
CCL Products (India) rose 1.60% after consolidated net profit soared 18.4% to Rs 42.20 crore on 0.9% rise in net sales to Rs 264.58 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax stood at Rs 57.67 crore in Q4 March 2020, rising 21.5% from Rs 47.48 crore in Q4 March 2019. Total tax expense rose 30% to Rs 15.47 crore in Q4 March 2020 from Rs 11.84 crore in Q4 March 2019.
Global Markets:
Shares in Europe and Asia advanced on Tuesday, as sentiment was lifted by the launch of the U.S. Federal Reserve's corporate bond buying programme and concerns about a second wave of global coronavirus infections eased.
The Bank of Japan (BoJ), while announcing its monetary policy decision, said that it will closely monitor the impact of COVID-19 and will not hesitate to take additional easing measures if necessary. BoJ expects short- and long-term policy interest rates to remain at their present or lower levels.
In Europe, British Prime Minister Boris Johnson signaled on Monday that a Brexit deal with the European Union is possible in July 2020, as both sides promised to ramp up the pace of talks in the hope of securing a new trade agreement.
In US, stocks benchmarks closed higher Monday, booking a sharp turnaround after the Federal Reserve took further steps to keep credit flowing to big businesses during the pandemic, amid signs of a resurgence of the deadly COVID-19 pandemic in parts of the world.
The US Fed said it will start purchasing corporate bonds on Tuesday through the secondary market corporate credit facility (SMCCF). The Fed will use an indexing approach when making purchases, aiming to create a portfolio that is based on a broad, diversified market index of US corporate bonds.
"This index is made up of all the bonds in the secondary market that have been issued by US companies that satisfy the facility's minimum rating, maximum maturity and other criteria," the Fed said in a statement Monday. "This indexing approach will complement the facility's current purchases of exchange-traded funds."
Meanwhile, increases in infections in Florida and Texas have raised fears about the success of efforts to gradually reopen the US economy, with phased restarts of business activity in all 50 states.
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