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Benchmarks pare losses; banks tumble

·6-min read

Equity indices pared losses in morning trade. The Nifty reclaimed 14,500 mark after slipping below that level in early trade. Banks and financial shares were under pressure while FMCG and metal stocks were in demand.

At 10:29 IST, the barometer index, the S&P BSE Sensex, was down 405.13 points or 0.83% at 48,377.12. The Nifty 50 index declined 102 points or 0.7% at 14,529.10.

In broader market, the S&P BSE Mid-Cap index was down 0.48% while the S&P BSE Small-Cap index was up 0.75%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1417 shares rose and 1157 shares fell. A total of 138 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 152,497,194 with 3,199,014 global deaths.

India reported 34,13,642 active cases of COVID-19 infection and 218,959 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Politics:

Election results 2021 for West Bengal, Assam, Tamil Nadu, Kerala and Puducherry assemblies were declared on Sunday (May 2). The TMC managed a landslide victory in West Bengal, the same as DMK in Tamil Nadu and Left-led LDF in Kerala. The BJP managed to retain power in Assam and cruised to victory in Puducherry.

Economy:

The gross Goods and Services Tax (GST) revenue collected in the month of April is at a record high of Rs 1,41,384 crore. Of which CGST is 27,837 crore, SGST is 35,621 crore, IGST is 68,481 crore and Cess is 9,445 crore.

The revenues for the month of April this year are 14% higher than the GST revenues in the month of March 2021. The GST revenues during April 2021 are the highest since the introduction of GST. GST revenues have not only crossed the one lakh crore rupees mark successively for the last seven months but have also shown a steady increase. These are clear indicators of sustained economic recovery during this period.

Further, the government has announced various relief measures for taxpayers under GST law including reduction in interest rate and waiving of late fee. The Finance Ministry has said that a lower rate of interest of 9% for the first 15 days from the due date of payment of tax and 18% thereafter, for the tax payable for tax period of March and April 2021 has been notified for registered persons having aggregate turnover of over Rs 5 crore.

In case of aggregate turnover upto Rs 5 crore, nil rate of interest for the first 15 days from the due date of payment of tax, 9% for the next 15 days, and 18% thereafter, for both normal taxpayers and those under Quarterly Return, Monthly Payment of Taxes (QRMP) Scheme for March and April, 2021 has been notified.

For registered persons having aggregate turnover above Rs 5 crore, the late fee has been waived for 15 days with regard to returns in FORM GSTR-3B furnished beyond the due date for tax periods of these two months. In case of turnover upto Rs 5 crore, the late fee has been waived for 30 days for GSTR-3B returns furnished beyond the due date.

Besides, the Finance Ministry has extended the due date of filing FORM GSTR-1 and Invoice Furnishing Facility- IFF for the month of April due in May has been extended by 15 days. The due date of filing FORM GSTR-4 for Financial Year 2020-21 has also been extended from 30th April to 31st May, 2021. The due date of furnishing FORM ITC-04 for January to March, 2021 quarter has also been extended from 25th April, to 31st of this month.

Buzzing Index:

The Nifty Bank index slumped 1.51% to 32,286.90, extending its losing run to third consecutive trading session. The index has slumped 4.26% in three days.

AU Small Finance Bank (down 8.07%), Bandhan Bank (down 3.59%), SBI (down 1.95%), Federal Bank (down 1.94%), Punjab National Bank (down 1.87%), ICICI Bank (down 1.82%), Axis Bank (down 1.59%) and IDFC First Bank (down 1.46%) were top losers in banking space.

IndusInd Bank rose 0.78% after the bank reported 190.2% jump in net profit to Rs 875.95 crore in Q4 FY21 from Rs 301.84 crore in Q4 FY20. Total income during the quarter increased by 0.4% year-on-year (YoY) to Rs 9199.48 crore. Operating profit before provisions and contingencies in the fourth quarter was at Rs 3061.53 crore, up by 7.9% from Rs 2836.17 crore reported in the same period last year. Provisions and contingencies declined by 23.5% to Rs 1865.69 crore in Q4 FY21 over Q4 FY20. On the asset quality side, gross non-performing assets (NPAs) stood at Rs 5,794.99 crore as on 31 March 2021 as against Rs 3,650.66 crore as on 31 December 2020 and Rs 5,146.74 crore as on 31 March 2021.

Results Today:

Kotak Mahindra Bank (down 0.82%), SBI Life Insurance Company (up 2.68%), Godrej Properties (down 2.37%), IDBI Bank (down 0.57%), L&T Technology (up 2.43%), Varun Beverages (up 4.28%), Tata Chemicals (down 1.07%) and Mahindra Holidays (down 0.76%) are among companies that will announce their March quarter results today.

Home First Finance (up 1.14%) will announce its first ever quarterly result after listing on bourses on 3 February 2021.

Earnings Impact:

RIL dropped 2%. On a consolidated basis, Reliance Industries (RIL) reported 108.36% surge in net profit to Rs 13,227 crore on 9.59% increase in net sales to Rs 149,575 crore in Q4 March 2021 (Q4FY21) over Q4 March 2020 (Q4FY20). The increase in revenue was primarily due to higher volumes in transportation fuels and better price realizations across O2C segment. The robust performance by retail segment across all formats also added to growth in revenue. EBITDA rose 1.9% quarter-on-quarter (QoQ) and it advanced 2.77% year-on-year (YoY) to Rs 26,602 crore in Q4FY21 over Q4FY20. The sequantial improvement was primarily due to improvement in O2C and retail businesses.

Trent rose 0.35%. On a standalone basis, Trent registered net profit Rs 56.88 crore in Q4 FY21, steeply higher than Rs 2.61 crore posted in Q4 FY20. Net sales grew by 7% year on year to Rs 773.68 crore in Q4 FY21. In Q4, Trent said it continued with the initiative of crystallizing reductions in rent and related charges. As required by the applicable standards, Rs 12 crore in Q4 and Rs 89 crore in the year ended FY21 have been accounted as part of other income notwithstanding their operating nature. We continue to engage with our property partners as we navigate the recent business disruptions in several states. Westside revenues in Q4 were broadly at last year levels (96% of the corresponding quarter on a like for like basis). However, the company saw a sharp drop in the revenues following the temporary partial lockdowns in various states along with the local restrictions of operating hours/days starting mid-March. As of 31st March, Trent said it had over 6 million members in the Westside loyalty program.



Source: Capitalmarket.com