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Nifty hovers below 10,300 mark; breadth weak
29-Jun-20   13:22 Hrs IST

Indices traded with modest losses in afternoon trade. Weak global cues coupled with Indo-China border tensions weighed on the investors sentiment. At 13:20 IST, the barometer index, the S&P BSE Sensex dropped 324.89 points or 0.92% at 34,846.38. The Nifty 50 index lost 104.60 points or 1.01% at 10,278.40.

In the broader market, the S&P BSE Mid-Cap index fell 1.50% while the S&P BSE Small-Cap index declined 1.30%. The decline in both these indices was steeper than the Sensex.

Sellers outnumbered buyers. On the BSE, 1,032 shares rose and 1,623 shares fell. A total of 123 shares were unchanged. In Nifty 50 index, 10 stocks advanced while 40 stocks declined.

Foreign portfolio investors (FPIs) sold shares worth Rs 753.18 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,304.18 crore in the Indian equity market on 26 June, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 1,01,46,971 far with 5,01,940 deaths. India reported 2,10,120 active cases of COVID-19 infection and 16,475 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Gainers & Losers:

Britannia Industries (up 1.97%), Cipla (up 1.47%), HUL (up 1.38%), M&M (up 0.84%) and Bharti Airtel (up 0.41%) were top gainers in Nifty 50 index.

Axis Bank (down 4.40%), Hindalco Industries (down 4.34%), ZEEL (down 3.49%), BPCL (down 3.18%) and Bajaj Finance (down 3.05%) were major losers in Nifty 50 index.

Earnings Impact:

ITC advanced 2.15% after consolidated net profit rose 9.1% to Rs 3,856.52 crore on 4.8% decline in net sales to Rs 12,456.45 crore in Q4 March 2020 over Q4 March 2019. Cigarettes segment revenue declined 3.3% YoY to Rs 5,750.44 crore while the revenue from other FMCG products segment fell 3.9% YoY to Rs 3,190.34 crore during the quarter. Hotel business revenue stood at Rs 494.76 crore (down 13.8% YoY), agri-business revenue was at Rs 1,899.01 crore (down 15.9% YoY), paperboards, paper & packaging revenues were at Rs 1,458.87 crore (down 6.2% YoY) and revenue from other businesses (viz. IT services, branded residences etc.) came in at Rs 575.68 crore (up 2.1% YoY) in the fourth quarter. ITC board recommended a dividend of Rs 10.15 per share for the financial year ended 31 March 2020. It will be paid on Tuesday, 8 September, 2020.

NTPC shed 1.65% after the state-owned power supplier reported a 70.5% drop in consolidated net profit to Rs 1,523.77 crore on a 27% jump in net sales to Rs 30,201.08 crore in Q4 March 2020 over Q4 March 2019. Profitability was significantly dented on the back of higher tax provisions. NTPC's total tax expenses in Q4 March 2020 stood at Rs 4,948.12 crore as against a tax rebate of Rs 7,465.19 crore received in Q4 March 2019. NTPC group's total installed capacity increased to 62,110 MW as on 31 March 2020 as against 55,126 MW as on 31 March 2019. The group's commercial capacity increased by 8,260 MW to 61,126 as on 31 March 2020 compared with 52,866 MW as on 31 March 2019.

Glenmark Pharmaceuticals gained 1.29% after the pharmaceutical major's consolidated net profit surged 36.3% to Rs 220.31 crore on 7.3% rise in net sales to Rs 2,711.27 crore in Q4 March 2020 over Q4 March 2019. Consolidated EBITDA soared 27.89% to Rs 465.68 crore in the quarter ended 31 March 2020 as against Rs 364.13 crore in the corresponding quarter last year. India business grew 14.52% Y-o-Y (year-on-year) to Rs 764.75 crore in Q4 FY20. Europe business jumped 29.26% Y-o-Y to Rs 411.56 crore. Latin America business surged 46.9% Y-o-Y to Rs 176.87 crore. North America business recorded 1% Y-o-Y fall to Rs 761.90 crore.

Coal India dropped 4.26% after the public-owned coal mining major reported a 23% decline in consolidated net profit to Rs 4,637.95 crore on 3.6% fall in revenue from operations to Rs 27,568.23 crore in Q4 FY20 over Q4 FY19. Total expense in the fourth quarter rose 2.6% to Rs 22,033.90 crore from Rs 21,471.78 crore in the same period last year. Profit before tax (PBT) in Q4 March 2020 stood at Rs 7,447.40 crore, down by 16.2% from Rs 8,892.35 crore in Q4 March 2019. During the March quarter, raw coal production increased by 9.9% YoY to 213.71 million tonne while the raw coal offtake remained almost flat at 163.87 million tonne.

Oil India rose 1.43%. The oil exploratory firm's consolidated net profit stood at Rs 1,597.40 crore in Q4 March 2020 compared with net loss of Rs 70.59 crore in Q4 March 2019. Net sales slipped 15.8% to Rs 2,607.38 crore in Q4 FY20 from Rs 3,097.26 crore in Q4 FY19. Crude oil price realization decreased 13.23% to Rs 3,776.79 per barrel in Q4 FY20 compared with Rs 4,352.84 per barrel in Q4 FY19. The adverse impact was on account of fall in international crude oil prices because of COVID-19 and collapse in understanding between OPEC and Russia on continued production cuts. Meanwhile, on 27 May 2020, one of the gas producing well in Baghjan field in Assam suddenly became very active while work over operation was on. The effort to control the blowout is going on. Teams of OIL, ONGC and international expert are working to control the well at the earliest. Due to blow out, there is production loss of about 80,000 SCMD of natural gas which is only about 1% of OIL's daily natural gas production. The National Green Tribunal (NGT) has issued an order constituting a ten-member committee for investigation. NGT has also ordered OIL to deposit Rs 25 crore as an interim money with DC, Tinsukia.

National Aluminum Company (NALCO) dropped 4.63% after aluminum producer's consolidated net profit tanked 57.2% to Rs 100.51 crore on 30% drop in net sales to Rs 1,935.86 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax (PBT) skid 56.3% to Rs 176.66 crore in Q4 March 2020 as against Rs 404.55 crore in Q4 March 2019. Tax expense slumped 55.1% to Rs 76.15 crore in Q4 March 2020 as against Rs 169.73 crore in Q4 March 2019. On a standalone basis, NALCO posted a net profit of Rs 138.23 crore for FY20. During the year, the company has achieved net turnover of Rs 8,426 crore, which has been adversely impacted by about Rs 2,900 crore due to fall in global metal prices. The export turnover of the company for the fiscal was Rs 3,511 crore.

Avanti Feeds jumped 13.04% after consolidated net profit jumped 30% to Rs 98.71 crore on 20.65% increase in net sales to Rs 1,034.81 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax stood at Rs 126 crore, up by 23% from Rs 102.54 crore in the same period last year. Total tax expense rose 3.5% to Rs 27.28 crore in Q4 FY20 over Q4 FY19. During the quarter, revenue from shrimp feed segment rose 15.48% to Rs 764.59 crore while revenue from shrimp processing segment rose 38.45% to Rs 270.65 crore compared with the corresponding period last year.

Global Markets:

European markets opened lower while Asian shares continued to trade lower on Monday as rising number of global coronavirus cases spooked investors. Investors across the globe have been banking on businesses continuing to reopen, helping to drive a recovery from the worst global downturn since the 1930s Great Depression.

The US stock market finished session steeply lower on Friday, 26 June 2020, as risk off selling triggered on rising coronavirus cases and the Federal Reserve's order to cap bank dividend payments and share buybacks.

Investors were disappointed to see that the number of confirmed new coronavirus cases per day in the US hit an all-time high of 40,000, surpassing the peak set during one of the deadliest stretches in late April 2020.

The governors from Texas and Florida on Thursday both signaled that they would pause the reopening of their economies as the two giant states of the US sunbelt contend with spikes in coronavirus cases. Renewed concerns over the novel coronavirus pandemic has threatened to derail a strong rally for Wall Street.

Bank shares plummeted after the Federal Reserve limited dividend payments and barred share repurchases until at least the fourth quarter following its annual stress test.

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