The key equity indices ended with significant losses on Monday. Shares fell across the board with banks and financials correcting the most. The Nifty closed above the 14,350 level.
The barometer index, the S&P BSE Sensex, dropped 882.61 points or 1.81% to 47,949.42. The Nifty 50 index tumbled 258.40 points or 1.77% to 14,359.45.
A spike in domestic coronavirus cases and localized lockdown being announced by various state governments dented investors sentiment.
In the broader market, the BSE Mid-Cap index fell 1.93% and the BSE Small-Cap index lost 1.64%.
Sellers outnumbered buyers. On the BSE, 773 shares rose and 2199 shares fell. A total of 200 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 14,14,14,180 with 30,19,660 deaths. India reported 19,29,329 active cases of COVID-19 infection and 1,78,769 deaths while 1,29,53,821 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Several states like Maharashtra, Rajasthan, Uttar Pradesh, Kerala, Karnataka etc. continued to witness a record surge on Sunday. In view of the unprecedented surge, governments have imposed weekend lockdowns, night curfews etc. in their respective states. The state of Rajasthan, for example, began a self-discipline fortnight on Monday which will be in effect till 5 AM on 3 May 2021.
Chief Minister Arvind Kejriwal announced a six-day lockdown in Delhi from 10 pm tonight to 5 am next Monday, amid rising COVID-19 cases.
Economy:
According to the Reserve Bank of India's (RBI) weekly statistical supplement, India's foreign exchange reserves rose $4.344 billion to stand at $581.213 billion during the week ended 9 April 2021 from $576.869 billion reported for the week ended 2 April 2021.
Similarly, the value of the country's gold reserves rose $1.297 billion to $35.320 billion. The SDR value climbed $6 million to $1.492 billion. The country's reserve position with the IMF inched higher by $24 million to $4.946 billion during the same tenure.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 6.082% as compared with 6.088% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 74.87, compared with its close of 74.35 during the previous trading session.
MCX Gold futures for 4 June 2021 settlement rose 0.94% to Rs 47,796.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.49% to 91.11.
In the commodities market, Brent crude for June 2021 settlement fell 4 cents at $66.73 a barrel. The contract fell 17 cents, or 0.25% to settle at $66.77 a barrel in the previous trading session.
Foreign Markets:
Shares in Europe and Asia advanced on Monday as the global economic recovery and corporate earnings prospects bolstered sentiment despite rising COVID-19 infections. Chinese stocks outperformed amid easing concerns about the health of state enterprise China Huarong Asset Management Co., a bad-debt manager.
China's financial regulator on Friday reportedly said Huarong had ample liquidity, the first official comments since the company missed a deadline to report earnings. That was enough to cement a rally in Huarong bonds and ease contagion fears.
Japan's exports posted their strongest growth in more than three years in March. Ministry of Finance data showed on Monday exports surged 16.1% in March from a year earlier, marking the steepest rise since November 2017. That was followed by a 4.5% contraction in February.
U.S. stocks rose again on Friday as the market's rally to records carried on amid strong earnings from blue-chip companies as well as solid data signaling a snapback in the economy. Federal Reserve Governor Christopher Waller said Friday the U.S. economy is set to take off, but there's still no reason to start tightening policy.
The University of Michigan said Friday its preliminary consumer sentiment index rose to a one-year high of 86.5 in the first half of this month from 84.9 in March.
New Listing:
Shares of Macrotech Developers closed at 463.15 on the BSE, at a discount of 4.70% over the initial public offer (IPO) price of Rs 486.
The stock was listed at Rs 439, a discount of 9.67% to the IPO price. The stock hit a high of Rs 477.90 and low of Rs 421.15. On the BSE, 3.33 lakh shares were traded on the counter.
The IPO of Macrotech Developers was subscribed 1.36 times. The issue opened for bidding on 7 April 2021 and closed on 9 April 2021. The price band for the IPO
Buzzing Segment:
The Nifty Bank index fell 2.40% to 31,208.40. The index has lost 2.82% in two sessions.
RBL Bank (down 6.63%), Federal Bank (down 5.89%), AU Small Finance Bank (down 5.85%), Bandhan Bank (down 5.47%), IDFC First Bank (down 5.22%), PNB (down 5.03%), Indusind Bank (down 3.63%), Kotak Mahindra Bank (down 3.52%), Axis Bank (down 3.17%), SBI (down 2.78%) and ICICI Bank (down 1.16%) declined.
HDFC Bank skid 1.12%. The private lender reported 18.2% rise in net profit to Rs 8,186.51 crore in Q4 FY21 compared with Rs 6,927.69 crore in Q4 FY20. Total income of the bank rose 5.8% year-on-year (Y-o-Y) to Rs 38,017.50 crore during the quarter. Net interest income for the quarter ended 31 March 2021 grew by 12.6% to Rs 17,120.20 crore from Rs 15,204.10 crore for the quarter ended 31 March 2020, driven by advances growth of 14%, and a core net interest margin of 4.2%. Other income stood at Rs 7,593.90 crore in Q4 FY21, up by 25.9% from Rs 6,032.60 crore in Q4 FY20.
The bank continues to hold provisions as on 31 March 2021 against the potential impact of COVID-19 based on the information available at this point in time and the same are in excess of the RBI prescribed norms. The bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 5,861 crore as on 31 March 2021. Total provisions (comprising specific, floating, contingent and general provisions) were 153% of the gross non-performing loans as on 31 March 2021.
Given that the current second wave has significantly increased the number of COVID-19 cases in India and uncertainty remains, the board of directors of the bank, at its meeting held on 17 April 2021, has considered it prudent to currently not propose dividend for the financial year ended 31 March 2021, the private lender said in a statement.
Stocks in Spotlight:
ACC fell 0.26% to Rs 1876.85 after consolidated net profit surged 74.2% to Rs 563 crore on 22.7% increase in net sales to Rs 4213 crore in Q1 FY21 over Q1 FY20. Consolidated EBITDA jumped 46.8% to Rs 860 crore in Q1 FY21 as against Rs 586 crore in Q1 FY20. EBITDA margin improved to 20.4% in Q1 FY21 compared with 17.1% in Q1 FY20. Operating EBIT soared 67.13% to Rs 717 crore in Q1 FY21 from Rs 429 crore in Q1 FY20.
ACC's cement sales volume jumped 21.49% to 7.97 million tonnes in Q1 FY21 over Q1 FY20. Sale of ready mix concrete dropped 10.75% to 0.83 million cubic metres in Q1 FY21 over Q1 FY20.
Bharti Airtel lost 2.61%. The government of Ghana, Bharti Airtel and Millicom International Cellular S.A. on Friday announced execution of the definitive agreement for transfer of 'AirtelTigo' to Government of Ghana, on a going concern basis.
ICICI Lombard General Insurance Company declined 3.74%. Its net profit jumped 22.6% to Rs 345.68 crore on a 22.2% surge in net sales to Rs 3,628.23 crore in Q4 FY21 over Q4 FY20. Gross Direct Premium Income (GDPI) of the company stood at Rs 3,478 crore in Q4 FY2021 compared to Rs 3,181 crore in Q4 FY2020, registering a growth of 9.4% Y-o-Y (year-on-year). The industry growth for Q4 FY2021 was at 14%.
Jubilant Pharmova surged 6.44%. The company's subsidiary, Jubilant Pharma announced the development of a novel oral formulation of Remdesivir with successful completion of safety and pharmacokinetic/absorption studies in animals and healthy human volunteers. Jubilant has sought authorization for additional studies for this novel oral formulation from the Drug Controller General of India (DCGI).
Caplin Point Laboratories jumped 5.44%. Caplin Steriles, a subsidiary company of Caplin Point Labs, has been granted final approval from the United States Food and Drug Administration (US FDA) for its abbreviated new drug application (ANDA) Milrinone Lactate Injection. It is indicated for the short-term intravenous treatment of patients with acute decompensated heart failure.
Kolte-Patil Developers dropped 7.41%. The company's volume jumped 27.1% to 0.85 million square feet (sq. ft.) in Q4 FY21 over 0.67 million sq. ft. in Q4 FY20. Strong sales momentum sustained in Q4 FY21 across regions, projects and product categories.
Sale value surged 42.7% to Rs 510.90 crore in Q4 FY21 as against Rs 358.10 crore in Q4 FY20. Sales realization soared 12.3% to Rs 5,988 per sq. ft. in Q4 FY21 from Rs 5,333 per sq. ft. in Q4 FY20. Collections spurted 16.8% to Rs 441.50 crore in Q4 FY21 as compared to Rs 378.10 crore in Q4 FY20.
There has been a further reduction in net debt during Q4 FY21. Hence, strong collections and low debt have resulted in healthy OCF in FY21, despite being a year impacted by COVID-related disruptions. The company signed three new projects with a combined saleable area of 2.2 msf in Pune under capital light models.
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