India markets closed

Market trades firm on positive global cues

The benchmark indices were trading with strong gains in afternoon trade, led by banks shares. Press briefing on Cabinet decisions will be reportedly held at 4 pm today.

At 13:20 IST, the barometer index, the S&P BSE Sensex soared 431.25 points or 1.27% at 34,256.78. The Nifty 50 index rallied 133 points or 1.33% at 10,112.10.

Global cues were positive as hopes of more stimulus and further easing in social restrictions around the world eclipsed worries over coronavirus. The sentiment was also boosted by Prime Minister Narendra Modi's comment that India's economy would get back on track supported by systematic reforms.

Broader markets were trading frim. The S&P BSE Mid-Cap index rose 1.16%. The S&P BSE Small-Cap index gained 2.06%.

The market breadth was strong. On the BSE, shares 1,777 rose and 580 shares fell. A total of 126 shares were unchanged. In Nifty 50 index, 39 stocks advanced while 10 stocks declined.

Foreign portfolio investors (FPIs) bought shares worth Rs 7,498.29 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 441.05 crore in the Indian equity market on 2 June, provisional data showed. Uday Kotak sold 2.8% in Kotak Mahindra Bank for Rs 6,900 crore through block deals on Tuesday.

Cyclone Nisarg:

Cyclone Nisarg intensified into a severe cyclonic storm Wednesday morning, and is expected to cross the Maharashtra coast this afternoon. The storm is likely to make landfall close to Alibagh in Raigad district, which is just over 100 km south of Mumbai. Investors stay cautious ahead of the cyclone. India Meteorological Department tweeted: "The cyclone will gradually enter into Mumbai and Thane district during next 3 hrs. Landfall will commence in 1 hr and the process will be completed during next 3 hrs."

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 63,83,805 far with 3,80,331 deaths. India reported 1,01,497 active cases of COVID-19 infection and 5,815 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

The IHS Markit India Services Business Activity Index recorded 12.6 in May. Although the headline figure rose from April's unprecedented low of 5.4, it remained at a level which, prior to the coronavirus pandemic, was unparalleled in over 14 years of data collection and pointed to an extreme drop in services activity across India.

The Composite PMI Output Index, which measures combined services and manufacturing output, signalled a further severe contraction in private sector business activity during May. Posting 14.8, from 7.2 in April, the latest reading was consistent with a further decline in output which was unparalleled prior to the COVID-19 outbreak.

Commenting on the latest survey results, Joe Hayes, Economist at IHS Markit, said: "Service sector activity in India is still effectively on hold, latest PMI data suggest, as output fell at an extreme rate once again during May. Given the stringency of the lockdown measures imposed in India, it is no surprise to see the severity of the declines in April and May. Demand for services, both domestically and overseas, continued to plummet in May as clients' businesses remained closed and footfall remains drastically below normal levels. With economic output set to fall enormously in the first half of 2020, it is clear that the recovery to pre-COVID-19 levels of GDP is going to be very slow."

Q4 Results Today:

Aurobindo Pharma (up 1.84%), BPCL (down 2.36%), Cholamandalam Investment and Finance Company (up 2.95%), Dishman Carbogen Amcis (up 4.93%), DCM Shriram (up 1.87%) and MAS Financial Services (up 1.96%) are some of the companies that will announce their quarterly earnings today.

Gainers & Losers:

Bajaj Finance (up 4.62%), ICICI Bank (up 4.41%), State Bank of India (up 3.73%), Mahindra & Mahindra (up 3.60%) and Tata Motors (up 3.32%) were top Nifty gainers.

Bharti Infratel (down 2.22%), Wipro (down 1.85%), NTPC (down 1.81%), Infosys (down 1.12%) and Maruti Suzuki India (down 0.83%) were top Nifty losers.

Earnings Impact:

Britannia Industries jumped 5.13% after the packaged foods maker's consolidated net profit surged 26% to Rs 374.75 crore on 1.6% rise in net sales to Rs 2,807.78 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax stood at Rs 457.72 crore in Q4 March 2020, rising 1.6% from Rs 449.92 crore in Q4 March 2019. Net profit was aided by a significant drop in tax expenses. Total tax expenses declined 45.4% to Rs 84.92 crore in Q4 March 2020 from Rs 155.65 crore reported in the same period last year. Commenting on the performance, Varun Berry, Managing Director, said that on the cost front, the company witnessed moderate inflation in the prices of key raw materials for the bakery business. Commodity prices at global level too witnessed a moderation due to low demand on account of lockdown in most parts of the world.

InterGlobe Aviation (IndiGo) soared 8.99%. InterGlobe Aviation reported a consolidated net loss of Rs 870.81 crore in Q4 March 2020 as against consolidated net profit of Rs 595.83 crore in Q4 March 2019. Pre-tax loss stood at Rs 1,289.77 crore in Q4 FY20 as against pre-tax profit of Rs 626.07 crore in Q4 FY19. Net sales during the quarter rose 5.3% YoY (year-on-year) to Rs 8,299.06 crore. Closure of flight operations during national lockdown on account of COVID-19 significantly impacted revenue for the quarter.

Zydus Wellness advanced 2.50% after the company reported a 10.9% rise in consolidated net profit to Rs 69.10 crore on 17.2% rise in net sales to Rs 487.87 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax stood at Rs 61.47 crore in Q4 March 2020, rising 24% from Rs 49.48 crore reported in Q4 March 2019. Adjusted EBIDTA was up by 20.9% to Rs 104.60 crore in Q4 March 2020 over Q4 March 2019.

Granules India gained 1.43% after consolidated net profit jumped 44.2% to Rs 92.34 crore on 2.2% decline in net sales to Rs 599.88 crore in Q4 March 2020 over Q4 March 2019. Revenue during the quarter was impacted due to restriction imposed on paracetamol API (active pharmaceutical ingredients), PFI (Pharmaceutical Formulation Intermediates) and ED. Restriction removed for PFI and FD (Finished Dosages) on April 2020 and API by end of May 2020. Consolidated profit before tax soared 62.3% to Rs 136.70 crore in Q4 March 2020 as against Rs 84.22 crore in Q4 March 2019. Current tax expenses jumped 123% to Rs 35.93 crore in Q4 March 2020 as against Rs 16.11 crore paid in Q4 March 2019. The result was declared post trading hours yesterday, 2 June 2020.

Global Markets:

European markets opened higher while Asian shares continued traded higher on Wednesday as optimism over economies reopening from shutdowns cheered investors.

In Europe, Lufthansa reported a net loss of 2.1 billion euros ($2.35 billion) for the first three months of the year.

Japan's services sector activity stayed deep in contraction in May, although the pace of decline moderated from the previous month, as restraining measures put in place over the coronavirus outbreak hurt business activity and the jobs market.

The final seasonally adjusted au Jibun Bank Japan Services Purchasing Managers' Index (PMI) rose to a seasonally adjusted 26.5 in May from a record low 21.5 in the previous month.

US stocks ended higher for a second straight day Tuesday. Technology, industrial and health care sector shares accounted for majority of the gains. Energy stocks outperformed the remainder of the market as the price of brent crude rose ahead of a meeting of major oil producers. Bond yields climbed, another indicator of receding pessimism among investors.

Meanwhile, President Donald Trump reiterated threats to deploy military troops across cities facing protests if governors and local officials prove unable to contain violent demonstrations.

Major cities from Los Angeles to New York have been engulfed in nightly protests after George Floyd, a black man, died last Monday following a confrontation with police in Minneapolis in which a white police officer, Derek Chauvin, was captured on video driving his knee onto Floyd's neck until the handcuffed man lost consciousness and later died. New York City announced its 8 PM curfew will remain in place for the rest of the week, but that didn't stop hundreds from marching to protest the killing of Floyd.



Source: Capitalmarket.com