Key equity indices ended with strong gains on Tuesday, recovering from yesterday's steep selloff. The Nifty managed to close near the day's high above the 14,500 mark. Barring IT and pharma, all the sectoral indices on the NSE ended in the green.
The barometer index, the S&P BSE Sensex, rose 660.68 points or 1.38% at 48,544.06. The Nifty 50 index gained 194 points or 1.36% at 14,504.80. Both these indices tumbled over 3.7% in the past two sessions.
ICICI Bank (up 4.10%), Axis Bank (up 4.08%), HDFC (up 3.78%) and HDFC Bank (up 2.47%) boosted the indices.
In the broader market, the BSE Mid-Cap index rose 1.46% and the BSE Small-Cap index added 1.21%.
Buyers outpaced sellers. On the BSE, 1936 shares rose and 928 shares fell. A total of 182 shares were unchanged.
The domestic equity market will remain shut on Wednesday (14 April 2021) on account of Dr. Baba Saheb Ambedkar Jayanti.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 13,66,76,442 with 29,46,124 deaths.
A total of 1,61,736 new Covid-19 cases have been reported on Tuesday, pushing India's tally of cases to 1,36,89,453, according to data updated by the Health Ministry. With 879 fatalities in the last 24 hours, the death toll increased to 1,71,058. The number of active cases continued to increase for the 34th day in a row to touch 12,64,698 and account for 9.24% of the total infections.
Economy:
India's indirect tax collection rose in the fiscal ended March 2021. The provisional figures for indirect tax collections (GST & non-GST) for the financial year 2020-21 show that net revenue collections are at Rs 10.71 lakh crore compared with 9.54 lakh crore for the financial year 2019-20, thereby registering a growth of 12.3%.
Net tax collections on account of GST of centre (CGST+IGST+ Compensation Cess) during financial year 2020-21 is Rs 5.48 lakh crore, lower than Rs 5.99 lakh crore in the previous financial year.
The GST collections were severely affected in the first half of the financial year on account of Covid. However, in the second half, the GST collections registered a good growth and collections exceeded Rs 1 lakh crore in each of the last six months. March saw an all-time high of GST collection at Rs 1.24 lakh crore after very good figures in the month of January and February. Several measures taken by the Central Government helped in improving compliance in GST.
Net tax collections on account of Central Excise and Service Tax (Arrears) during financial year 2020-21 stood at Rs 3.91 lakh crore as compared to Rs 2.45 lakh crore in the previous financial year, thereby registering a growth of more than 59%.
Meanwhile, the Index of Industrial Production (IIP) showed industrial output in India once again shrink in February, going down by 3.6%. IIP had contracted by an updated 0.9% in January after rising by 1.6% in December.
The all-India general CPI inflation rose to 5.52% in March 2021 (new base 2012=100), compared with 5.03% in February 2021. The corresponding provisional inflation rate for rural area was 4.61% and urban area 6.52% in March 2021 as against 4.19% and 5.96% in February 2021.
Monsoon Update:
Private forecaster Skymet Weather has predicted Monsoon rains at 103% of the Long Period Average rains for India, ranging between normal and above normal, with a model error of 5%. This is the third year in succession that India may see above normal rains during the season. The last time it happened was in 1996, 1997, and 1998, Skymet said.
Numbers to Watch:
MCX Gold futures for 4 June 2021 settlement rose 0.17% to Rs 46,498.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.12% to 92.25.
In the commodities market, Brent crude for June 2021 settlement rose 62 cents at $63.90 a barrel. The contract rose 33 cents, or 0.52% to settle at $63.28 a barrel in the previous trading session.
Foreign Markets:
Most European shares traded higher while Asian stocks ended on a mixed note on Tuesday, following a muted finish overnight on the Wall Street.
China's exports in dollar terms rose by 30.6% in March from one year earlier while imports jumped 38.1% compared to the same time last year.
US stocks settled near their record levels on Monday as dull trading resumed before the release of widely-watched inflation data and the start of first-quarter corporate earnings.
Fed Chairman Jerome Powell on Sunday reiterated that the Fed wants to see inflation rise above its 2% for an extended period before officials move to raise interest rates. He added that amid an accelerated COVID-19 vaccine rollout and strong fiscal support, the U.S. economy appears to be at a turning point.
Buzzing Indian Segment:
The Nifty Auto index rose 4.28% to 9,818.30. The index fell 5.46% in the past two sessions.
M&M (up 7.78%), Maruti Suzuki India (up 4.67%), Hero Motocorp (up 2.94%), Eicher Motors (up 2.88%), Ashok Leyland (up 2.54%), TVS Motor (up 1.86%) and Bajaj Auto (up 1.81%) advanced.
Tata Motors rose 5.39% after the company announced that Jaguar Land Rover achieved retail sales of 123,483 vehicles in Q4 March 2021, 12.4% higher than the same quarter last year. While sales of Jaguar declined by 17.1% to 23,463 units, Land Rover sales jumped 22.6% to 100,020 units in Q4 March 2021 over Q4 March 2020. China sales were up 127% compared to a year ago when that market was heavily impacted by COVID-19. Sales in North America were also up year-on-year (up 10.4%), while other regions remain lower than pre-COVID levels, including Overseas markets (down 10%), the UK (down 6.8%) and Europe (down 4.9%).
Stocks in Spotlight:
TCS tanked 4.21%. The IT major reported a 6.3% growth in consolidated net profit to Rs 9,246 crore in Q4 March 2021 over Q3 December 2020. Consolidated revenue grew by 4% to Rs 43,705 crore in Q4 March 2021 over Q3 December 2020. On a year-on-year (YoY) basis, TCS' net profit rose 14.87% and revenues rose 9.41% in Q4 March 2021. In constant currency terms, the company's revenues grew 4.2% on a quarter-on-quarter (QoQ) basis and 5.9% on a YoY basis during the March quarter. The IT major's operating margin expanded 0.2% QoQ and 1.7% YoY to 26.8% in Q4 March 2021. TCS' order book at $9.2 billion in Q4 March 2021, was the highest ever total contract value (TCV) in a quarter, taking the total yearly order book at $31.6 billion, a 17.1% growth compared to previous financial year.
All verticals showed good sequential growth, but a couple continue to lag prior year level - BFSI (+7% QoQ, +13.3% YoY), Retail and CPG (+4% QoQ, -0.9% YoY), Life Sciences and Healthcare (+3.8% QoQ, +19.3% YoY), Manufacturing (+3.9% QoQ, +1.3% YoY), Technology & Services (+2.8% QoQ, +3.9% YoY) and Communications & Media (+1.8% QoQ, -4% YoY). The company's board has proposed a final dividend of Rs 15 per share.
Adani Ports and Special Economic Zone (APSEZ) fell 1.80% after the S&P Dow Jones Indices announced the removal of the stock from the Dow Jones Sustainability Indices. APSEZ will be removed from the Dow Jones Sustainability Indices following a media & stakeholder analysis triggered by recent news events pointing to heightened risks to the company regarding their commercial relationship with Myanmar's military, who are alleged to have committed serious human rights abuses under international law, S&P Dow Jones Indices said.
Dr. Reddy's Laboratories slipped 4.18%. The drug major received the permission from the Drug Controller General of India to import the Sputnik V vaccine into India for restricted use in emergency situations as per the provisions of the New Drug and Clincial Trials rules, 2019. In September 2020, Dr Reddy's Laboratories had partnered with the Russian Direct Investment Fund (RDIF) to conduct the clinical trials of Sputnik V and distribute the vaccine in India. In addition to the trials conducted in Russia by RDIF. Phase II / III clinical trials of the vaccine were carried out by Dr Reddy's Laboratories in India.
Bandhan Bank gained 1.34% after the bank's total deposits jumped 37% to Rs 77,972 crore at the end of 31 March 2021 as against Rs 57,082 crore on 31 March 2020. The bank's loans & advances at the end of the March 2021 stood at Rs 87,054 crore, up by 21% from Rs 71,846 crore in the same period last year. The loan book of the private lender has increased by 8% sequentially compared with Rs 80,255 crore at the end of the 31 December 2020. Retail to Total Deposits ratio was at 79% as on 31 March 2021 as against 81% as on 31 December 2020 and 78% as on 31 March 2020.
Yes Bank rose 1.73%. Market regulator Sebi vide its order dated 12 April 2021 has imposed a penalty of Rs 25 crore against Yes Bank under Section 15 HA of SEBI Act, 1992 for the alleged mis-selling of AT-1 Bonds in the secondary market. The bank shall be preferring an appeal before the Securities Appellate Tribunal, it said.
Satin Creditcare Network fell 3.31%. The company said its asset under management (AUM) stood at Rs 7,274 crore as on 31 March 2021, recording a growth of 5.3% Q-o-Q (quarter-on-quarter). For FY21, Satin Creditcare Network maintained sufficient liquidity of Rs 1,469 crore. During FY21, the company raised Rs 4,312 crore including direct assignment transactions of Rs 743 crore.
Muthoot Finance gained 0.91% after the NBFC's board approved payment of an interim dividend of Rs 20 per equity share. The company has fixed 23 April 2021 as the record date for the purpose of payment of interim dividend.
NBCC (India) advanced 4.36% after the company said it has been engaged as project management consultant for the construction of FCIL office building at Noida (Uttar Pradesh) on 9 April 2021. NBCC (India) is the project management consultant (PMC) for a project worth Rs 65.10 crore charging a PMC fee of 7%.
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