The domestic equity benchmarks ended the volatile session with decent gains on Tuesday. Positive global cues boosted sentiment. As per the provisional closing data, the barometer index, the S&P BSE Sensex, was up 224.93 points or 0.59% at 38,407.01. The Nifty 50 index added 52.35 points or 0.46% at 11,322.50.
The broader indices underperformed the benchmarks. The S&P BSE Mid-Cap index shed 0.20% while the S&P BSE Small-Cap index slipped 0.23%.
The market breadth was positive. On the BSE, 1602 shares rose and 1159 shares fell. A total of 158 shares were unchanged.
Total COVID-19 confirmed cases worldwide stood at 20,090,541 with 736,208 deaths. India reported 6,39,929 active cases of COVID-19 infection and 45,257 deaths while 15,83,489 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Buzzing Index :
The Nifty Metal index rose 1.62% to 2,371.65. The index has added 11.1% in the past eight sessions while the benchmark Nifty 50 index has risen 2.1% during the same period.
Welspun Corp (up 4.97%), Jindal Steel & Power (up 4.76%), Hindustan Copper (up 3.10%), National Aluminum Co. (up 2.16%), NMDC (up 2.13%), Ratnamani Metals Tubes (up 1.81%), Tata Steel (up 1.78%) and SAIL (up 1.44%) advanced.
JSW Steel added 3.94% to Rs 254.60 after crude steel production grew 9% to 12.46 lakh tonnes in July 2020 as against 11.44 lakh tonnes in June 2020. Rolled products (flat) jumped 17% to 9.40 lakh tonnes in July 2020 as against 8.04 lakh tonnes in June 2020. Rolled products (long) surged 46% to 2.40 lakh tonnes in July 2020 compared with 1.65 lakh tonnes in June 2020.
Adani Ports and Special Economic Zonerose 1.18% to end at Rs 335.15, ahead of Q1 earnings today.
Among the other stocks, KRBL (up 1.75%), Metropolis Healthcare (down 5.10%), Prataap Snacks (up 3.92%) and Rashtriya Chemicals & Fertilizers (up 1.93%) will announce their quarterly earnings today.
RITES rose 1.11% to Rs 250.60. The miniratna public sector enterprise reported a 36.3% drop in consolidated net profit to Rs 64.99 crore in Q1 June 2020 as against Rs 102.08 crore in Q1 June 2019. The company registered a 37.6% drop in consolidated revenue to Rs 335.47 crore in Q1 June 2020 as against Rs 537.65 crore posted in the same period last year.
Bosch declined 3.06% to Rs 13,174.80 after the auto parts maker reported a consolidated net loss of Rs 120.83 crore in Q1 June 2020 compared with net profit of Rs 281.56 crore posted in Q1 June 2019. Consolidated revenue from operations stood at Rs 991.54 crore in Q1 June 2020, declining 64% from Rs 2,755.44 crore posted in the same period last year. The company clarified that the COVID-19 pandemic adversely impacted sales in all segments during the quarter.
Bajaj Electricals gained 2.75% to Rs 438.25. The company reported consolidated net loss of Rs 16.60 crore in Q1 June 2020 compared with net profit of Rs 13.70 crore in Q1 June 2019. net sales slumped 53.46% to Rs 608.29 crore in Q1 FY21 over Q1 FY20.
In the first quarter of FY21, Bajaj Electricals generated positive cashflow from operations of Rs 145 crore as against Rs 42 crore in the corresponding first quarter of the previous year. Debt reduced to Rs 810 crore as at 30 June 2020 from Rs 962 crore as at 31 March 2020. The order book as on 1 July 2020 was at Rs 1,595 crore, comprising of Rs 624 crore for transmission line towers, Rs 764 crore for power distribution and Rs 207 crore for illumination projects.
Motherson Sumi Systems (MSSL) added 3.53% to Rs 108.60. The auto ancillary posted a consolidated net loss of Rs 1,191.65 crore in Q1 June 2020 as compared with net profit of Rs 360.64 crore in Q1 June 2019. Net sales slumped 49.36% to Rs 8,503.89 crore in Q1 FY21 over Q1 FY20.
The company's Q1 FY21 results were severely impacted by COVID-19 pandemic. There is gradual ramp up in plants globally with 84% of Motherson Sumi Systems' (MSSL) plants running at more than 50% capacity. The company expects strong demand in second quarter encouraged by consistent improvement at greenfields plants of SMP. The firm has a strong liquidity position and is currently focusing on conserving cash.
Power Grid Corporation of India shed 0.03% to Rs 177.25. The company's consolidated net profit fell 18.15% to Rs 2,048.42 crore on 9.24% rise in total income to Rs 10,258.67 crore in Q1 June 2020 over Q1 June 2019.
Titan Company fell 3.68% to Rs 1067.05 after the company reported a consolidated net loss of Rs 297 crore in Q1 June 2020 compared with net profit of Rs 364 crore in Q1 June 2019. Revenue from operations stood at Rs 1979 crore in Q1 June 2020, tumbling 61.5% from Rs 5151 crore in the same period last year.
The disruption caused by the COVID-19 pandemic affected company's performance severely with retail outlets closed for a major part of the quarter. The lockdowns impacted the company's operations significantly in the months of April and May 2020 as most stores were forced to shut down. While stores started opening in May, post Unlock 1.0, even as at end of June 2020, only 83% of all the stores opened and even for stores that opened, many of them were not operating for all days.
With the negative consumer sentiment prevailing in the quarter, discretionary spends were very low, and specifically impacted company's Watches business and diamond studded jewellery in the Jewellery business. Plain gold jewellery sales, however, recovered better than expected in June despite high gold prices.
Shree Cement declined 3.93% to Rs 21,508 after consolidated net profit fell 13.6% to Rs 330.35 crore on 24.9% drop in net sales to Rs 2,480.14 crore in Q1 June 2020 over Q1 June 2019.
Bank of Baroda (BoB) declined 2.99 % to Rs 47.10 after the bank posted net loss of Rs 864.26 crore in Q1 June 2020 as against net profit of Rs 709.87 crore in Q1 June 2019. Total income declined 2.6% YoY to Rs 20,312.44 crore during the quarter.
The bank's global net interest margin (NIM) during Q1 June 2020 stood at 2.55% while domestic NIM in Q1 June 2020 stood at 2.63% compared with 2.62% and 2.73% respectively during the same period last year.
The bank's provisions and contingencies surged 71.3% to Rs 5627.70 crore in Q1 June 2020 from Rs 3284.88 crore in Q1 June 2019. The bank said it made provisions on standard accounts of Rs 1,811 crore. With respect to COVID-19 provisioning, the bank made fresh provision of Rs 996.11 crore in Q1 June 2020. The bank's provision coverage ratio in Q1 June 2020 stood at 83.30% higher than 77.34% reported in the same quarter last year.
On the asset quality front, the ratio of gross NPAs to gross advances stood at 9.39% as on 30 June 2020 as against 9.4% as on 31 March 2020 and 10.28% as on 30 June 2019. The ratio of net NPAs to net advances stood at 2.83% in Q1 FY21 as against 3.13% in Q4 FY20 and 3.95% in Q1 FY20.
BoB said that the total moratorium on term loans availed is 21.4% of total loan book. Of which 15.7% is by borrowers with outstanding above Rs 10 lakhs who were given an option.
KEC International jumped 6.73% to Rs 292.40. The company reported 20% decline in consolidated net profit to Rs 71 crore on 9% fall in revenues to Rs 2,207 crore in Q1 June 2020 over Q1 June 2019. EBITDA margin was at 8.8% as on 30 June 2020 as against 10.4% as on 30 June 2019.
Vimal Kejriwal, MD & CEO, KEC International, commented, "With operations nearing pre-COVID levels and an order book plus L1 pipeline of over Rs. 24,500 crore, we are confident of delivering a good performance in FY21."
The US Dow Jones index futures were up 278 points, indicating strong opening in the US market today.
European markets edged higher while most Asian indices ended in the green on Tuesday following the overnight gains on Wall Street.
The Singapore economy contracted by 42.9% in the second quarter of 2020 compared to the previous quarter on an annualized, seasonally-adjusted basis, said the Ministry of Trade and Industry. The updated figure was worse than the official advance estimate released last month, and confirmed the Southeast Asian country had entered a technical recession.
The trade and industry ministry revised its full-year forecast for Singapore to register an economic contraction of between 5% and 7% in 2020. Previously, it had expected the country's GDP to fall by between 4% and 7%.
The US stocks closed mixed on Monday, 10 August 2020, with the Dow Industrials rallied along with the S&P 500 index but the Nasdaq bucked the trend, as investors rotated into value stocks from tech sector while they awaited news on progress in a fiscal support bill for the country's battered economy.
Monday trading showed signs of a rotation away from high-growth stocks in the tech sector to more economically sensitive cyclical companies. As the summer COVID-19 spike wanes, investors are more inclined toward cyclical stocks to view the economic recovery as real and sustainable for the first time since the pandemic began.
Providing some support, US President Donald Trump signed executive orders that partly restored enhanced unemployment benefits after talks between the White House and top Democrats in Congress about fresh stimulus broke down last week.
Tensions between Washington and Beijing were also at play, after Trump signed executive orders last week banning major Chinese technology firms in 45 days' time while announcing sanctions on 11 Chinese and Hong Kong officials.
Eastman Kodak Co sank after its $765-million loan agreement with the US government to produce pharmaceutical ingredients was put on hold due to "recent allegations of wrongdoing."