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Nifty ends above 15,100; banks shares rise for second day

·7-min read

The domestic equity barometers ended with strong gains on Tuesday. The Nifty closed above the 15,100 mark. Private banks, financials, auto and metal shares advanced while FMCG and pharma shares corrected.

As per provisional closing data, the barometer index, the S&P BSE Sensex, advanced 612.60 points or 1.24% to 50,193.33. The Nifty 50 index added 184.95 points or 1.24% to 15,108.10.

In the broader market, the S&P BSE Mid-Cap index rose 1.87%. The S&P BSE Small-Cap index gained 1.28%.

Buyers outpaced sellers. On the BSE, 1950 shares rose and 1134 shares fell. A total of 170 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 16,36,42,990 with 33,90,316 deaths. India reported 33,53,765 active cases of COVID-19 infection and 2,78,719 deaths while 2,15,96,512 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Meanwhile, the government has dropped plasma therapy from COVID-19 treatment protocol. Covid National Task Force released new clinical guidelines for management of mild, moderate and severe COVID-19 cases. Plasma therapy does not find a mention under the new guidelines. The decision came on the basis of recommendations of experts from AIIMS, ICMR-COVID-19 National Task Force, and Joint Monitoring Group of Union Health Ministry.

The plasma therapy, which includes transfusion of COVID-19 antibodies from the blood of a recovered patient to the one being treated, has not been found effective in reducing the progression to severe disease nor has a decrease in the fatality rate been observed.

The World Health Organization on Monday, 17 May 2021 warned that the global pandemic isn't over yet despite high COVID-19 vaccination rates in some countries. In Asia, places such as Singapore and Taiwan have seen a recent resurgence in local infections, prompting authorities to tighten restrictions in a bid to stem the virus' spread.

Economy:

The Reserve Bank of India (RBI) in its latest bulletin said that the biggest economic impact during the second wave has been on the demand outlook. RBI said demand has seen a sharp fall during the April-May period, but added that the situation is better than the first wave in 2020.

According to the central bank, loss of mobility, lower discretionary spending, lack of employment and inventory accumulation are some of the factors that indicate weaker demand during the second wave in India. While RBI said that the resurgence of Covid-19 has dented economic activity in the first half of Q1:2021-22, it has not yet "debilitated" it.

Buzzing Index:

The Nifty Bank index rose 1.48% to 33,955.35, extending gains for second day. The index has added 5.55% in two sessions.

Federal Bank (up 3.43%), Bandhan Bank (up 2.64%), HDFC Bank (up 2.64%), IndusInd Bank (up 1.89%), ICICI Bank (up 1.52%), RBL Bank (up 0.81%) and Kotak Mahindra Bank (up 0.62%) advanced.

Punjab National Bank (down 0.80%) and Bank of Baroda (down 0.45%) declined.

Earnings Impact:

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) fell 2.73% to Rs 389.50. The company reported a 29.4% rise in consolidated net profit to Rs 308.91 crore in Q4 FY21 as against Rs 238.77 crore in Q4 FY20. Net sales rose 29.1% to Rs 1733 crore in Q4 FY21 over Q4 FY20 aided by better realisation of industrial chemicals.

Wabco India surged 3.79% to Rs 6978. The automotive parts manufacturer's standalone net profit rose 51.2% to Rs 47.63 crore on 75.9% surge in net sales to Rs 712.32 crore in Q4 March 2021 over Q4 March 2020.

Sun Pharma Advanced Research Company (SPARC) declined 2.27% to Rs 221.85. SPARC reported a net loss of Rs 56.72 crore in Q4 FY21, lower than net loss of Rs 99.54 crore in Q4 FY20. Net sales jumped 23.6% to Rs 28.06 crore in Q4 FY21 over Q4 FY20.

Mangalore Refinery & Petrochemicals (MRPL) surged 7.91% to Rs 52.50 after the company posted a net profit of Rs 328.30 crore in Q4 FY21 compared with net loss of Rs 1,629.14 crore in Q4 FY20. Net sales declined 3.94% year-on-year to Rs 13,575.94 crore in Q4 FY21 as against Rs 14,132.28 crore in Q4 FY20. The company reported pre-tax profit of Rs 519 crore in Q4 FY21 as against a pre-tax loss of Rs 2,276 crore in Q4 FY20. EBITDA stood at Rs 874 crore in Q4 FY21 as against EBITDA loss of Rs 1,891 crore in Q4 FY20.

Orient Cement added 3.33% to Rs 125.70 after the company's net profit increased 126.6% to Rs 99.88 crore in Q4 FY21 compared with Rs 44.07 crore in Q4 FY20. Net sales during the quarter increased 27.1% to Rs 831.62 crore in the fourth quarter compared with the same period last year.

Kalyani Steels jumped 5.16% to Rs 392. The company's consolidated net profit surged to Rs 75.68 crore in Q4 FY21 from Rs 22.66 crore in Q4 FY20. Revenue from operations increased by 39.3% year-on-year (YoY) to Rs 377.23 crore during the quarter.

Canara Bank tumbled 4.39% at Rs 146.85. The public sector bank's net profit stood at Rs 1010.87 crore in Q4 FY21 compared with net loss of Rs 3,259.33 crore in Q4 FY20. Total income increased 51.33% to Rs 21,522.60 crore in Q4 FY21 over Q4 FY20.

The bank's total provisions for Q4 FY21 stood at Rs 4,134.15 crore, declining 23% from Rs 5,375.38 crore in Q4 FY20. On the asset quality side, the gross NPA ratio stood at 8.94% as on 31 March 2021, compared to 7.48% on 31 December 2020 and 8.24% as of 31 March 2020. The net NPA ratio stood at 3.82% as on 31 March 2021 from 2.65% as on 31 December 2020 and 4.23% as on 31 March 2020.

Stocks in Spotlight:

Tata Motors added 3.72% to Rs 333.05, ahead of Q4 results today.

Reliance Industries (RIL) rose 1.35% to Rs 1987.10. Reliance Jio Infocomm (Jio), a major mobile broadband digital service provider and a subsidiary of RIL, is constructing the largest international submarine cable system centered on India. Jio, in conjunction with several key global partners and world-class submarine cable supplier SubCom, is currently deploying two next generation cables to support the extraordinary growth in data demand across the region.

The India-Asia-Xpress (IAX) system connects India eastbound to Singapore and beyond, while the India-Europe-Xpress (IEX) system connects India westbound to the Middle East and Europe. The systems will interconnect as well as connect to the world's top interexchange points and content hubs for extension of service globally. IAX is expected to be ready for service mid-2023, while IEX will be ready for service in early 2024.

HCL Technologies gained 0.95% to Rs 930.70. The company announced the expansion of investment in the United Kingdom with the hiring of 1,000 technology professionals to support its clients in the UK and around the world. The company plans to hire these professionals in the fields of digital transformation, cloud, artificial intelligence and cybersecurity for its London, Greater London and Manchester offices.

Zuari Agro Chemicals shed 0.26% to Rs 97.50. The company said that the fertilizer plant of the company situated at Zuarinagar, Goa was impacted on May 16, 2021 by Cyclone-Tauktae and there could be some damages caused to the fertilizer plant at Goa. Consequently, there could be a potential delay in the restart of ammonia and urea plants, the company said.

Global Markets:

Shares in Europe and Asia rose across the board on Tuesday as global markets look to break out from the gloomy sentiment seen at the start of the trading week.

Japan's economy shrank at an annualized rate of 5.1% in January to March, government data showed Tuesday. On a seasonally adjusted basis, gross domestic product in January-March fell 1.3% quarter-on-quarter. That came as resurgent COVID-19 infections in the country snapped two quarters of consecutive growth.

Wall Street stocks ended lower on Monday, weighed down by tech shares as signs of growing inflation worried investors about the potential for tighter monetary policy.



Source: Capitalmarket.com