Sensex rises 256 pts on positive global signals

·9-min read

Domestic indices ended with decent gains on Friday amid positive global cues. The Nifty managed to close above the 14,800 mark after slipping below that level in intraday trade. Barring the Nifty PSU Bank index, all sectoral indices on the NSE ended in the green.

As per the provisional closing data, the S&P BSE Sensex, rose 256.71 points or 0.52% to 49,206.27. The Nifty 50 index gained 98.35 points or 0.67% to 14,823.85.

Global stock market advanced as investors welcomed a strong jobs report from the United States that reinforced optimism that the world's top economy is well on the recovery track. The White House's support for a global waiver on patent protections for Covid-19 vaccines also cheered investors.

In the broader market, the S&P BSE Mid-Cap index lost 0.04% while the S&P BSE Small-Cap index added 0.15%.

Buyers outpaced sellers. On the BSE, 1,692 shares rose and 1,319 shares fell. A total of 168 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 15,60,80,676 with 32,56,425 deaths. India reported 36,45,164 active cases of COVID-19 infection and 2,34,083 deaths while 1,76,12,351 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Results Today:

UltraTech Cement (up 1.13%) Cholamandalam Investment and Finance (down 1.84%), Great Eastern Shipping (down 0.88%), Godrej Agrovet (up 0.71%), Grindwell Norton (up 0.31%), Kansai Nerolac (down 0.03%) and Navin Fluorine (down 6.87%) will announce quarterly results today.

Earnings Impact:

Housing Development Finance Corporation (HDFC) rose 2.61% after the corporation reported 42.4% jump in standalone net profit to Rs 3,179.83 crore in Q4 FY21 as against Rs 2,232.53 crore in Q4 FY20. Total income declined by 2.3% year-on-year (YoY) to Rs 11,707.53 crore in the fourth quarter. Profit before tax in Q4 FY21 stood at Rs 3,923.94 crore, up by 45.7% from Rs 2,692.44 crore in Q4 FY20. The gross non-performing loans as at 31 March 2021 stood at Rs 9,759 crore. This is equivalent to 1.98% of the loan portfolio. As per regulatory norms, the corporation is required to carry a total provision of Rs 5,491 crore. The provisions as at 31 March 2021 stood at Rs 13,025 crore. The provisions carried as a percentage of the Exposure at Default (EAD) is equivalent to 2.62%. Expected Credit Loss (ECL) charged to the statement of profit and loss for the year ended 31 March 2021 stood at Rs 2,948 crore.

Dabur India fell 2%. The FMCG company reported 34.4% jump in consolidated net profit to Rs 377.8 crore on a 25.3% rise in revenue from operations to Rs 2,336.8 crore in Q4 FY21 over Q4 FY20. EBITDA was at Rs 527.4 crore in Q4 FY21, up by 23.2% from Rs 428.1 crore in Q4 FY20. EBITDA margin was at 22.6% as on 31 March 2021 as compared to 22.9% as on 31 March 2020.

Hero MotoCorp fell 1.95%. The two-wheeler major reported 39.4% jump in net profit to Rs 864.97 crore in Q4 FY21 as against Rs 620.71 crore in Q4 FY20. Net sales during the quarter increased 39.2% year-on-year (YoY) to Rs 8685.97 crore. EBITDA was at Rs 1,211 crore in Q4 FY21, up 83.5% from Rs 660 crore in Q4 FY20. EBITDA margin stood at 13.9% as on 31 March 2021 compared with 10.6% as on 31 March 2020. The company sold 15.68 lakh units of motorcycles & scooters in Q4 FY21 as against 13.23 lakh units sold in Q4 FY20, registering a growth of 18.5% on a YoY basis.

Tata Consumer Products declined 3.88%. The FMCG company's consolidated net profit stood at Rs 133.34 crore in Q4 FY21 compared with net loss of Rs 50.21 crore in Q4 FY20. The company reported an exceptional loss of Rs 63.93 crore during the quarter. It mainly represents the costs relating to the business restructure and re-organisation of Rs 18 crore and loss on disposal of an overseas subsidiary/joint venture of Rs 46 crore. Net sales soared 26.28% (24% in constant currency) to Rs 3,037.22 crore in Q4 FY21 from Rs 2,405.03 crore in Q4 FY20, mainly driven by strong volume and value growth in the India Food & Beverage business. Profit before exceptional items and tax at Rs 262 crore in Q4 FY21 is higher by 6%, as compared to corresponding quarter of the previous year, mainly on account of tea cost inflation in India and higher investment behind brands which partly offset the revenue growth and strong control on overheads.

Raymond rose 3.11% after the company's consolidated net profit stood at Rs 56 crore in Q4 FY21 compared with net loss of Rs 68 crore in Q4 FY20. Net sales gained 6.8% to Rs 1,365.66 crore in Q4 FY21 over Q4 FY20. EBITDA stood at Rs 197 crore in Q4 FY21 from Rs 5 crore in Q4 FY20. EBITDA margin improved to 14% in Q4 March 2021 as against 0.4% n Q4 March 2020.

Procter & Gamble Health (P&G health) dropped 6% after the FMCG company's standalone net profit slumped 66.1% to Rs 15.77 crore on a 3.9% decline in net sales to Rs 219.15 crore in Q3 March 2021 over Q3 March 2020. The revenue was impacted by stock challenges and higher last year base on account of exports sales phasing during the same quarter last year. The net profit was impacted by lower sales for the quarter and lower expense base last year supported by provision true ups and reversals.

Adani Power (APL) rose 0.26%. The company reported consolidated net profit of Rs 13.13 crore in Q4 FY21 compared with net loss of Rs 1,312.86 crore in Q4 FY20. The EBITDA for Q4 FY21 grew 496% to Rs 2,143 crore as compared to Rs 360 crore in Q4 FY20. The EBITDA growth was aided by prior period income recognition, lower cost of domestic alternate coal, favourable currency movement, lower provisioning of one-time expenses, and lower revenue reversal, as compared to Q4 FY20.

Adani Transmission (ATL) spurted 4.48% after the company's consolidated net profit surged 335.1% to Rs 256.55 crore on 14.4% increase in net sales to Rs 2,726.61 crore in Q4 FY21 over Q4 FY20. Consolidated operational EBITDA climbed 18% to Rs 1,034 crore in Q4 FY21 over Q4 FY20. Transmission operational EBITDA at Rs 656 crore, up 6% year-on-year (Y-o-Y). Distribution operational EBITDA was at Rs 377 crore, up 47% Y-o-Y.

Blue Star advanced 1.75% after the company's consolidated net profit surged to Rs 67.97 crore in Q4 FY21 from Rs 8.90 crore in Q4 FY20. Net sales during the quarter increased 24% year-on-year (Y-o-Y) to Rs 1,611.56 crore. Revenue growth and improvement in profitability across segments enabled Operating Profit (PBIDTA) excluding other income and finance income) to increase to Rs 101.81 crore (6.3% of revenue) for Q4 FY21 from Rs 37.33 crore (2.9% of revenue) in Q4 FY20. The company reported 29.9% drop in consolidated net profit to Rs 100.35 crore on 20.5% fall in net sales to Rs 4,263.59 crore in the year ended 31 March 2021 over the year ended 31 March 2021.

Global Markets:

Most shares in Europe traded higher while most Asian stocks closed on a positive note on Friday ahead of the U.S. jobs report due later in the day that might provide some indication on what the Fed could do next. Investors will be looking ahead to the U.S. nonfarm payroll count for April due Friday.

In Europe, the Bank of England said on Thursday it would slow the pace of its bond-buying as it sharply increased its forecast for Britain's economic growth this year after its coronavirus slump. The BoE kept its benchmark interest rate at an all-time low of 0.1% and the size of its bond-buying programme unchanged at 895 billion pounds ($1.24 trillion).

China's services sector expanded at the sharpest pace in four months in April. The Caixin/Markit services Purchasing Managers' Index (PMI) rose to 56.3, the highest since December when the same reading was registered and up from 54.3 in March. The 50-mark separates growth from contraction on a monthly basis.

Japan's services sector activity contracted in April. The final au Jibun Bank Japan Services Purchasing Managers' Index (PMI) rose to a seasonally adjusted 49.5 from the prior month's 48.3, the slowest pace of activity decline in the current 15-month run of contractionary PMIs.

The International Monetary Fund said on Thursday the recent jump in COVID-19 cases in India posed downside risks to the Fund's April forecast for 12.5% growth in India's economic output in fiscal years 2021 and 2022. The IMF will revisit that forecast when it issues a fresh World Economic Outlook in July, as per reports.

In US, the Dow Jones Industrial Average closed at a record high on Thursday, bolstered by an upbeat weekly jobless claims report, while vaccine makers dipped after U.S. President Joe Biden backed plans to waive patents on COVID-19 shots.

A Labor Department report showed initial claims for state unemployment benefits totaled a seasonally adjusted 498,000 for the week ended 1 May 2021, compared with 590,000 in the prior week. US private firms added 742,000 jobs in April, payrolls firm ADP said Wednesday, marking a fourth straight monthly gain.



Source: Capitalmarket.com