Domestic indices snapped four-day rising streak on Tuesday on account of negative global cues. The Nifty ended at 14,850 level. Shares of metal and private banks corrected while autos and PSU banks shares advanced.
The barometer index, the S&P BSE Sensex, declined 340.60 points or 0.69% to 49,161.81. The Nifty 50 index fell 91.60 points or 0.61% at 14,850.75.
Kotak Mahindra Bank (down 3%), HDFC (down 2.68%), HDFC Bank (down 1.10%) and Infosys (down 0.66%) were major drags.
Shares of PSU firms rallied. NTPC (up 4.6%), ONGC (up 3.69%) and Power Grid Corporation of India (up 1.66%) climbed.
The broader market outperformed the benchmark indices. The BSE Mid-Cap index rose 0.60% and the BSE Small-Cap index added 0.80%.
Buyers outpaced sellers. On the BSE, 1845 shares rose and 1204 shares fell. A total of 190 shares were unchanged.
Investors locked profits after the Sensex rose 2.59% and the Nifty climbed 3.08% in the past four consecutive sessions.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 15,89,57,229 with 33,03,877 deaths. India reported 37,15,221 active cases of COVID-19 infection and 2,49,992 deaths while 1,90,27,304 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
The country reported 3,29,942 cases in the last 24 hours taking the total caseload of COVID-19 cases to 2,29,92,517. The last time India recorded around 3.20 lakh cases in a day was on 27 April 2021 when a 24-hour count stood at 3,23,144 cases.
The media reported that WHO has reclassified the highly contagious triple-mutant COVID-19 variant spreading in India as a variant of concern, indicating that it's become a global health threat. WHO official said, We classify it as a variant of concern at a global level”.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 6.009% as compared with 6.014% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 73.34, compared with its close of 73.3550 during the previous trading session.
MCX Gold futures for 4 June 2021 settlement fell 0.18% to Rs 47,863.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.09% to 90.13.
In the commodities market, Brent crude for July 2021 settlement fell 61 cents at $67.71 a barrel. The contract rose 4 cents, or 0.06% to settle at $68.32 a barrel in the previous trading session.
Foreign Markets:
Shares in Europe and Asia declined on Tuesday, following a sell-off in tech stocks that weighed down major U.S. indexes overnight.
In the US, technology shares led the broader market lower on Monday as investors dumped high-flying Big Tech stocks, pushing the Dow Jones Industrial Average and the S&P 500 off their record highs.
Investors around the world are also focused on the latest inflation data this week. US inflation data will release on Wednesday amid growing concerns that the Federal Reserve will be prompted to tighten its monetary policy stance as prices rise along with the reopening of the global economy.
Earnings Impact:
HSIL hit an upper circuit of 20% at Rs 207.50 after the company's net profit surged to Rs 33.02 crore in Q4 FY21 as against Rs 3.38 crore in Q4 FY20. Net sales during the quarter increased 37.3% year-on-year (Y-o-Y) to Rs 633.21 crore. The company delivered EBITDA of Rs 102 crore, registering a robust growth of 65.5% on Y-o-Y basis. EBITDA margins improved to 15.9% in Q4 FY21 compared with 13.1% in Q4 FY20.
Paushak tumbled 3.65%. The company reported 72.8% jump in net profit to Rs 11.01 crore in Q4 FY21 as against Rs 6.37 crore in Q4 FY20. Net sales increased 32.3% to Rs 38.74 crore in the fourth quarter compared with the corresponding period last year. Profit before tax in Q4 FY21 stood at Rs 16.11 crore, up by 96.9% from Rs 8.18 crore in Q4 FY20.
Intellect Design Arena tumbled 7.98%. The company reported 96.7% jump in consolidated net profit to Rs 80.61 crore in Q4 FY21 as against Rs 40.99 crore in Q4 FY20. Net sales rose 11% to Rs 397.57 crore in Q4 FY21 over Q4 FY20. Profit before tax in the fourth quarter stood at Rs 90.15 crore, up 112.9% from Rs 42.35 crore reported in the same period last year.
JMC Projects (India) slipped 1.70%. The company reported a consolidated net profit of Rs 41.44 crore in Q4 FY21 as against net loss of Rs 54.76 crore in Q4 FY20. Net sales during the quarter increased 42.6% year-on-year (Y-o-Y) to Rs 1,392.22 crore. The company posted a pre-tax profit of Rs 61.57 crore in the fourth quarter compared with pre-tax loss of Rs 52.32 crore reported in the same period last year.
HFCL soared 8.02% after the company's consolidated net profit surged to Rs 84.67 crore in Q4 FY21 from Rs 5.78 crore in Q4 FY20. Net sales during the quarter increased 109.8% to Rs 1391.40 crore from Rs 663.19 crore reported in the same period last year. On the segmental front, revenue from Telecom Products was Rs 387.82 crore (up 114.4% YoY) while that from Turnkey Contracts and Services was Rs 1,003.58 crore (up 108.1% YoY) in the fourth quarter.
Stocks in Spotlight:
Indiabulls Housing Finance fell 1.04%. The housing finance firm has executed definitive transaction document to divest its mutual fund business to Nextbillion Technology, part of Groww Group ('Groww') for about Rs 175 crore.
Groww commenced its financial services business in May 2016 and currently is one of the leading tech platforms for investing in stocks and mutual funds. Groww is headquartered in Bangalore and backed by marquee investors including Tiger Global, Sequoia Capital India, Y Combinator and Ribbit Capital.
Punjab National Bank (PNB) fell 1.40%. The board of directors of the state-run bank approved opening of qualified institutional placement (QIP) on Monday. The board approved the floor price of Rs 35.51 per equity share for the QIP. The capital raising committee of the bank will meet on Friday, 14 May, to consider and determine the issue price for the equity shares to be allotted to eligible qualified institutional buyers.
Solara Active Pharma Sciences advanced 2.88% after Shivanand Shankar Mankekar bought 8.70 lakh equity shares or 2.42% stake at Rs 1,552.05 per share of the company via bulk deal on NSE on Monday (10 May 2021). Pronomz Ventures sold 8.70 lakh equity shares of Solara Active Pharma at Rs 1,552.05 per share via bulk deal on NSE on Monday. Professor Shivanand Shankar Manekar is a high net investor (HNI) and a former a full-time professor at Mumbai's Jamnalal Bajaj Institute of Management Studies.
Federal-Mogul Goetze (India) advanced 1.63%. The firm has shut down its plant situated at Bangalore (Karnataka) starting from 10 May till 15 May 2021 in view of the current pandemic situation in the region.
UPL rose 1.36%. The company has announced that its subsidiary has entered into a license agreement with Japanese company, Meiji Seika Pharma Co., for exclusive access to Flupyrimin for rice in Southeast Asia. Under the license agreement, UPL will obtain exclusive rights to develop, register and commercialize formulations of Flupyrimin for foliar applications in rice in Southeast Asia, expanding the on-going collaboration between the two companies with this compound.
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