The benchmark indices closed at all-time high level on Tuesday amid broad based buying. Easing of restrictions and falling active COVID-19 cases boosted market sentiment. The Nifty index hit record high of 16,146.90 and managed to close above the 16,100 mark for the first time. As per the provisional closing data, the barometer index, the S&P BSE Sensex, surged 872.73 points or 1.65% at 53,823.92. The Nifty 50 index jumped 245.6 points or 1.55% to 16,130.90. The S&P BSE Sensex scaled a new all-time high of 53,887.98.
Titan (up 3.99%), HDFC (up 3.78%), IndusInd Bank (up 3.49%) and Axis Bank (up 2.34%) boosted indices higher.
The broader market lagged benchmark indices. The S&P BSE Mid-Cap index rose 0.19% while the S&P BSE Small-Cap index added 0.23%.
The market breadth was positive. On the BSE, 1,732 shares rose and 1,508 shares fell. A total of 136 shares were unchanged.
Coronavirus Update:
Total COVID-19 confirmed cases worldwide stood at 19,89,33,145 with 42,36,469 deaths. India reported 4,04,958 active cases of COVID-19 infection and 4,25,195 deaths while 3,08,96,354 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
The Brihanmumbai Municipal Corporation (BMC) on Monday issued revised guidelines for the city, permitting non-essential shops to operate till 10 PM. Dining in restaurants will remain open till 4 PM. According to new guidelines, all government and private offices can be operational with full capacity. The municipal corporation has also allowed all indoor and outdoor games, except the use of swimming pool. The government has also allowed shopping malls to open and operate as per the new guidelines. Yoga centres, spa, saloon and gyms can operate with 50% capacity and without the use of air conditioning.
Meanwhile, the state government has still not taken any decision on allowing common people to travel by suburban trains in Mumbai.
India reported 30,549 new COVID-19 cases in last 24 hours. The hill states of north India saw the maximum rise in fresh cases during the week ended Sunday (26 July 2021 - 1 August 2021) as compared with the previous seven days. Himachal Pradesh registered a surge of 64%, the highest in the country, with cases rising from 670 in the previous week to 1,100.
In total numbers, Kerala's weekly surge was by far the highest. The state logged nearly 1.4 lakh fresh cases, 20,000 more than the count in the previous week, translating to a 27% spurt in infections. Karnataka's weekly total was 12,442, a 17% rise from 10,610 cases recorded in the previous week.
Economy:
India's merchandise exports grew 47.19% to $35.17 billion in July on account of a healthy growth in the shipment of petroleum, engineering goods and gems and jewellery, according to provisional data of the commerce ministry. Imports during the month also rose 59.38% to $46.40 billion, leaving a trade deficit of $11.23 billion.
Earnings Impact:
Dabur India advanced 2.29% after the company reported 28% rise in consolidated net profit to Rs 437.33 crore on a 31.9% increase in revenue from operations to Rs 2,611.54 crore in Q1 FY22 over Q1 FY21. As compared with Q4 FY21, the company's net profit and revenues have risen by 15.8% and 11.8%, respectively. Profit before tax in Q1 FY22 stood at Rs 567.99 crore, up by 34% from Rs 423.82 crore in Q1 FY21. Current tax outgo rose by 59.3% YoY to Rs 126.34 crore during the period under review. Dabur India said that continued investments behind the power brands and increasing distribution footprint, coupled with a structured and balanced approach to driving cost management, helped the company overcome the challenging context of COVID second wave.
Bank of India rose 0.27%. The PSU bank reported 14.7% fall in standalone net profit to Rs 720 crore on a 2% decline in total income to Rs 11,698.13 crore in Q1 FY22 over Q1 FY21. Net interest income (NII) fell 9.7% to Rs 3,145 crore in Q1 FY22 over Q1 FY21. Global net interest margin (NIM) was at 2.16% as on 30 June 2021 as against 2.48% as on 30 June 2020. Operating profit was at Rs 2,806.21 crore in Q1 FY21, down by 1.3% from Rs 2,844.52 crore in Q1 FY22. Provisions (other than tax) and contingencies increased by 13% YoY to Rs 1,709.12 crore in the first quarter, of which provision for non-performing assets aggregated to Rs 873.27 crore (up 13.9% YoY).
Punjab National Bank fell 1.11%. The PSU bank reported 232.1% increase in standalone net profit to Rs. 1,023 crore in Q1 FY22 from Rs 308 crore in Q1 FY21. Total income stood at Rs 22,515 crore during Q1 FY22, down by 7.3% from Rs 24,293 crore during Q1 FY21. Net interest income (NII) grew by 6.6% YoY to Rs 7,227 crore in Q1 FY22. Provisions other than tax amounted to Rs 4,679 crore in Q1 FY22 as against Rs 4,686 crore in Q1 FY21. Of this, provisions for NPAs aggregated to Rs 3,248 crore in Q1 FY22 as compared with Rs 4,836 crore in Q1 FY21.
Balaji Amines advanced 2.77% after the company's consolidated net profit soared 208.39% to Rs 97.39 crore on a 101.59% increase in total revenue from operations to Rs 451.94 crore in Q1 FY22 over Q1 FY21. Consolidated sales volume soared 27.98% to 25,621 million tonnes (MT) in Q1 FY22 as compared to 20,019 million tonnes (MT) in Q1 FY21. Consolidated profit before tax surged 211.19% to Rs 131.48 crore in Q1 FY22 as against Rs 42.25 crore in Q1 FY21. EBITDA for Q1 FY22 was at Rs 144.29 crore, recording a growth of 164.77% as compared to Rs 54.51 crore in Q1 FY21. EBITDA margin for Q1 FY22 was at 31.93% as against 24.31% in Q1 FY21.
RBL Bank declined 3.83% after the bank's standalone net loss stood at Rs 459.47 crore in Q1 June 2021 (Q1 FY22) as compared to a net profit of Rs 141.22 crore in Q1 June 2020 (Q1 FY21). Standalone total income rose 4.92% to Rs 2,720.50 crore in Q1 FY22 from Rs 2,592.73 crore in Q1 FY21. Pre-tax loss was at Rs 618.22 crore in Q1 FY22 as against a pre-tax profit of Rs 189.56 crore in Q1 FY21. Provision and Contingencies expanded 185.04% to Rs 1,425.67 crore in Q1 FY22 over Rs 500.16 crore in Q1 FY21. Provision coverage ratio (PCR) stood at 76.3% at 30 June 2021 over 70.5% as on 30 June 2020.
Castrol India rose 1.23% after the company's standalone net profit jumped 114.06% to Rs 140 crore on an 81.32% surge in revenue from operations to Rs 889.60 crore in Q2 2021 over Q2 2020. Standalone profit before tax soared 114.91% to Rs 190.20 crore in Q2 2021 as against Rs 88.50 crore in Q2 2020.
Shree Renuka Sugars hit a lower circuit of 5% at Rs 31.95 after the company reported a consolidated net loss of Rs 240.4 crore in Q1 FY22 as against a net loss of Rs 34.9 crore in Q1 FY21. Revenue from operations declined by 36.7% Y-o-Y to Rs 829.5 crore during the quarter. During the period under revenue, Distillery revenue rose to Rs 190.9 (up 44.4% Y-o-Y), revenue from Co-generation improved to Rs 32.5 crore (up 4.8% Y-o-Y) and Engineering revenue increased to Rs 13.3 crore (up 44.6% Y-o-Y).
CG Power & Industrial Solutions was locked in 5% upper-circuit at Rs 83.40 after consolidated net profit (from continuing operations) stood at Rs 48.29 crore in Q1 June 2021 (Q1 FY22) over a net loss of Rs 262.86 crore in Q1 June 2020 (Q1 FY21). Consolidated revenue from operations surged 189.48% to Rs 1,050.04 crore in Q1 FY22 from Rs 362.73 crore in Q1 FY21. Pre-tax profit was at Rs 71.35 crore in Q1 FY22 as against a pre-tax loss of Rs 237.37 crore in Q1 FY21. EBITDA for Q1 FY22 stood at Rs 120 crore as compared to an EBITDA loss of Rs (41) crore in Q1 FY21.
Global Markets:
European markets rallied across the board on Tuesday despite rising COVID-19 cases, Chinese tech regulation and U.S. growth worries.
Asian stocks mostly edged lower as the Delta coronavirus variant spread in key markets in the region and put Chinese authorities on high alert, rattling investor confidence.
U.S. stocks gave up early gains and turned negative for the session on Monday as concerns about COVID variants and peaking economic growth weighed against strong earnings results.
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