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Indices trades sideways with losses; breadth positive

·6-min read

Benchmarks traded sideways with modest losses in mid morning trade. The Nifty hovered near the 14,550 level. FMCG and metal stocks bucked the weak market trend. Mounting COVID-19 cases continued in the country and a negative trend in Asian equities spoiled sentiment.

At 11:23 IST, the barometer index, the S&P BSE Sensex, was down 346.65 points or 0.71% at 48,435.12. The Nifty 50 index declined 87.45 points or 0.6% at 14,543.10.

In broader market, the S&P BSE Mid-Cap index was down 0.42% while the S&P BSE Small-Cap index was up 1.01%.

The market breadth was positive. On the BSE, 1534 shares rose and 1193 shares fell. A total of 163 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.

Economy:

The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) was reported at 55.5 in April 2021, little changed from March's reading of 55.4, indicating a solid improvement in the health of the sector. Consumer goods was the strongest-performing category, followed by capital goods and then intermediate goods.

Commenting on the latest survey results, Pollyanna De Lima, Economics Associate Director at IHS Markit said, “The PMI results for April showed a further slowdown in rates of growth for new orders and output, both of which eased to eight-month lows amid the intensification of the COVID-19 crisis. Still, the increases were strong by historical standards and the survey revealed other positive news. New export orders surged to the fastest since last October and buying levels expanded at one of the sharpest rates seen for nine years. Also, the downturn in employment eased and business confidence towards the one-year outlook strengthened. "The headwinds facing manufacturers cannot be ignored, however. The surge in COVID-19 cases could dampen demand further when firms' financials are already susceptible to the hurdle of rising global prices. April saw the steepest increase in input costs for nearly seven years drive the sharpest upturn in output charges since October 2013. Data for the coming months will be important at verifying whether client demand is resilient to these challenges or if producers will have to further absorb cost burdens themselves to secure new work."

GST Collection for April 2021:

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 FMCG index added 0.87% to 33,916.50, snapping its two day losing streak. The index fell 1.48% in the past two sessions.

Marico (up 9.52%), Varun Beverages (up 4.3%), Godrej Consumer Products (up 2.44%), HUL (up 1.64%), Colgate Palmolive (up 1.39%), Jubilant Foodworks (up 0.93%) and Tata Consumer Products (up 0.82%) were top gainers in FMCG space.

Earnings Impact:

Yes Bank dropped 4.54% to Rs 13.89 after the bank standalone net loss stood at Rs 3,787.75 crore in Q4 FY21 as against Rs 2,628.61 crore in Q4 FY20. Total in come tumbled 17.41% to Rs 4,805.30 crore in Q4 FY21 over Q4 FY20. The bank's provisions and contingencies rose 7.54% to Rs 5,239.59 crore in Q4 FY21 over Q4 FY20. Gross non-performing assets (NPAs) stood at Rs 28,609.53 crore as on 31 March 2021 as against Rs 29,546.54 crore as on 31 December 2020 and Rs 32,877.59 crore as on 31 March 2020. The ratio of gross NPAs (GNPA) to gross advances stood at 15.41% as on 31 March 2021 as against 15.36% as on 31 December 2020 and 16.80% as on 31 March 2020. The ratio of net NPAs (NNPA) to net advances stood at 5.88% as on 31 March 2021 as against 4.04% as on 31 December 2020 and 5.03% as on 31 March 2020.

Central Depository Services (India) fell 0.63%. The company reported 82.8% jump in consolidated net profit to Rs 51.97 crore in Q4 FY21 from Rs 28.53 crore in Q4 FY20. Income from operations increased 72.1% year-on-year (YoY) to Rs 103.08 crore. Profit before tax in the fourth quarter stood at Rs 68.92 crore, up by 92.4% from Rs 35.82 crore reported in the same period last year.

Global Markets:

Asian stocks were trading lower on Monday, with thinner trading volumes expected as major markets in China and Japan are closed for holidays.

Wall Street ended lower on Friday, with Amazon, Apple, Alphabet, and other tech-related companies weighing on the S&P 500 and Nasdaq despite recent strong quarterly earnings reports.



Source: Capitalmarket.com