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. PSU banks corrected while metals stocks extended rally on improved sectoral outlook.
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 14,823.15.
The Sensex has risen 1.97% and the Nifty has climbed 2.25% in three consecutive sessions.
Global stock market advanced as investors welcomed an encouraging private 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, 1,698 shares rose and 1,312 shares fell. A total of 169 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.
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.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee rose to 73.5175 compared with its previous closing of 73.78.
The yield on 10-year benchmark federal paper rose to 6.015% as compared to its previous close of 5.974%.
MCX Gold futures for 4 June 2021 settlement rose 0.05% to Rs 47,618.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.18% to 90.79.
In the commodities market, Brent crude for July 2021 settlement lost 3 cents to $68.06 a barrel. The contract increased by 0.12% to settle at $68.96 in the previous trading session.
Global Markets:
Shares in Europe and Asia advanced 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.
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.
Meanwhile, US private firms added 742,000 jobs in April, payrolls firm ADP said Wednesday, marking a fourth straight monthly gain. The ADP report is compiled with Moody's Analytics and serves as a precursor to the more closely watched monthly nonfarm payrolls count from the Labor Department's Bureau of Labor Statistics.
Buzzing Indian Segment:
The Nifty Metal index climbed 4.73% to 5,335.85. The index has risen 8.42% in three consecutive sessions.
NALCO (up 9.85%), NMDC (up 8.07%), SAIL (up 8.04%), Tata Steel (up 7.51%), MOIL (up 7.25%), Vedanta (up 4.63%), Hindustan Zinc (up 4.27%), JSPL (up 3.94%), Hindalco Industries (up 3.89%), JSW Steel (up 3.38%) and Welspun Corp (up 0.42%) spurted.
Stocks in Spotlight:
Housing Development Finance Corporation (HDFC) rose 2.70% 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 1.97%. 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 3.73%. The 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 2.91% 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 6.40% 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 Transmission (ATL) spurted 4.01% 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.
Angel Broking surged 9.55% at Rs 556.85 after the company's board approved setting up an asset management company (AMC). The proposal is subject to the necessary statutory approvals required from various regulators including Securities and Exchange Board of India (Sebi). The company said it expects to capitalize on the growing investible wealth in India. The amount to be invested in the AMC business will be decided and approved by the board.
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