Benchmark indices rallied for the second day on Tuesday, as investors cheered the Union Budget announcements. Positive global cues also lifted the sentiment. The Nifty managed to close near 14,650 level.
As per the provisional closing data, the barometer index, the S&P BSE Sensex, soared 1,197.11 points or 2.46% at 49,797.17. The Nifty 50 index surged 367.8 points or 2.58% at 14,649.80.
The broader market lagged the benchmark indices. The S&P BSE Mid-Cap index gained 2.26% while the S&P BSE Small-Cap index gained 1.59%.
Buyers outnumbered sellers. On the BSE, 1,768 shares rose and 1,173 shares fell. A total of 173 shares were unchanged.
The Union Budget 2021 unveiled on 1 February 2021 supported all the essential aspects of growth by an increase in government spending without an increase in indirect taxes. The Budget offered huge stimulus to infrastructure, capex, healthcare and boosted the credit flow by taking out the toxic assets of the banking system. Increased FDI limit in insurance improved the overall outlook of the sector.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,494.23 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 90.46 crore in the Indian equity market on 1 February 2021, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 10,34,18,646 with 22,38,286 deaths. India reported 1,63,353 active cases of COVID-19 infection and 1,54,486 deaths while 1,04,48,406 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
New Listing:
Shares of Indigo Paints hit an upper circuit of 20% at Rs 3129 at 15:25 IST on the BSE, at a premium of 110% over the initial public offer price of Rs 1490. The stock was listed at Rs 2607.50, at a premium of 75% or 1117.5 points to the initial public offer (IPO) price. So far the stock hit a high of Rs 2756.30 and low of Rs 2475.20. On the BSE, 10.35 lakh shares were traded on the counter so far. The initial public offer (IPO) of Indigo Paints was subscribed 117.02 times. The issue received bids for 64.57 crore shares as against 55.18 lakh shares on offer, according to the stock exchange data. The issue opened for subscription on 20 January 2021 and closed on 22 January 2021. The price band for the IPO was set at Rs 1488-1490 per share.
January Auto Sales:
Hero MotoCorp fell 1.49%. The two wheeler maker sold 485,889 units of motorcycles and scooters in January 2021, lower than 501,622 units sold in January 2020. Domestic sales were at 4,67,776 units in January 2021 as against 4,88,069 units in January last year. Exports rose to 18,113 units as compared to 13,553 units.
Eicher Motors gained 1.86%. The company's total Royal Enfield sales jumped 8% to 68,887 units in January 2021 from 63,520 units in January 2020. The sales of models with engine capacity up to 350cc jumped 9% to 64,248 units, the sales of models with engine capacity exceeding 350cc rose 7% to 4,639 units in January 2021 over January 2020. Royal Enfield's exports soared 103% to 4,515 units in January 2021 as against 2,228 units in January 2020.
Bajaj Auto rose 2.09% after the two-wheeler maker's total sales rose 8% to 4,25,199 units in January 2021 from 3,94,473 units in January 2020. While total domestic sales declined 11% to 1,70,757 units, total exports improved 26% to 2,54,442 units in January 2021 over January 2020. During the month, the company's total two-wheeler sales jumped 16% year-on-year (YoY) to 3,84,936 units. Total commercial vehicles sales declined 35% year-on-year to 40,263 units in December 2020.
VST Tillers & Tractors rose 0.84% after the company's total sales jumped 16.80% to 2,905 units in January 2021 from 2,487 units in January 2020. While the company's power tiller sales jumped 14.56% to 2,258 units, tractor sales increased by 25.38% to 647 units in January 2021 over January 2020.
Earnings Impact:
HDFC rose 2.88%.
The housing finance major's standalone net profit tanked 65.05% to Rs 2,925.83 crore in Q3 December 2020 from Rs 8,372.49 crore in Q3 December 2019. Total income stood at Rs 11,716.34 crore in Q3 December 2020, dropping 42.25% from Rs 20,291.45 crore in Q3 December 2019. Profit before tax tumbled 58.95% to Rs 3,752.54 crore during the period under review. Total tax expense rose 7.29% to Rs 826.71 crore in Q3 FY21 over Q3 FY20.
Central Depository Services (India) gained 2.46% after the company reported 66.3% rise in consolidated net profit to Rs 48.75 crore on 69.4% increase in net sales to Rs 89.20 crore in Q3 FY21 over Q3 FY20. Consolidated profit before tax rose 66.7% to Rs 63.71 crore in Q3 FY21 from Rs 38.22 crore in Q3 FY20. Tax expense were steeply higher at Rs 16.52 crore in Q3 FY21 from Rs 5.81 crore in Q3 FY20.
Mangalore Refinery & Petrochemicals (MRPL) declined 3.81% after the company reported a consolidated net loss of Rs 213.65 crore in Q3 FY21 as against net loss of Rs 150.79 crore in Q3 FY20. Net sales declined 44% year-on-year (Y-o-Y) to Rs 7,893.37 crore during the quarter. Pre-tax loss in Q3 December 2020 stood at Rs 326.95 crore as against Rs 303.15 crore in Q3 December 2019. MRPL's gross refining margin (GRM) was at $3.26 per barrel in Q3 December 2020, up by 2.2% from $3.19 per barrel in Q3 December 2019.
Escorts surged 5.44% after the company's consolidated net profit jumped by 85.1% to Rs 286.71 crore on a 23.8% rise in revenue from operations to Rs 2,042.23 crore in Q3 FY21 over Q3 FY20. Profit before tax in Q3 December 2020 stood at Rs 382.49 crore, up by 81.2% from Rs 211.12 crore in Q3 December 2019. Tractor volumes were up by 25.7% at 31,562 units in quarter ended December 2020 as against 25,109 units in the corresponding period last fiscal. Construction equipment sales volume for the quarter ended December 2020 were up by 20.1% at 1,254 machines as against 1,044 machines in corresponding period last fiscal.
Finolex Industries jumped 5.79% after consolidated net profit soared 163.30% to Rs 259.40 crore on 52.5% increase in net sales to Rs 1,066.88 crore in Q3 December 2020 over Q3 December 2019. Consolidated profit before tax (PBT) surged 163% to Rs 348.96 crore in Q3 December 2020 as against Rs 132.67 crore in Q3 December 2019. Current tax expense for the quarter jumped 122% to Rs 88.81 crore as against Rs 40.01 crore in Q3 December 2019.
Coromandel International lost 0.45%. On a consolidated basis, the company reported 26.2% jump in net profit to Rs 333.80 crore on a 7.8% increase in net sales to Rs 3533.01 crore in Q3 FY21 over Q3 FY20. While the company's total expenditure rose 6.6% to Rs 3033.75 crore, interest payments declined by 55.3% to Rs 20.54 crore in Q3 December 2020 over Q3 December 2019. Profit before tax in the third quarter was at Rs 446.87 crore, up by 26.1% from Rs 354.42 crore reported in the same period last year. EBITDA for the quarter ended Dec 2020 has grown by 16% to Rs. 501 crore as compared to Rs 432 crore during corresponding quarter of last year.
Castrol India was up 0.47%. The company reported 30.8% drop in net profit to Rs 187.70 crore on a 7.6% fall in net sales to Rs 935.20 crore in Q4 December 2020 over Q4 December 2019. Profit before tax in Q4 December 2020 stood at Rs 249.80 crore, down by 26.3% from Rs 338.80 crore in Q4 December 2019.
Dhanuka Agritech fell 0.07%. On a consolidated basis, the company reported 44.7% jump in net profit to Rs 40.04 crore on a 8.9% rise in revenue from operations to Rs 295.66 crore in Q3 FY21 over Q3 FY20. Sequentially, the company's net profit declined by 42.9% and revenue from operations contracted 33.2% over Q2 FY21. Profit before tax in Q3 December 2020 stood at Rs 54.45 crore, up by 44.7% from Rs 37.62 crore in Q3 December 2019.
Global Markets:
Shares in Europe and Asia advanced on Tuesday. Globally, investors are keeping an eye out on further signs that economic recovery following the coronavirus pandemic is not too far away, as vaccination rollouts continue and new infections and fatalities start to slowly decline amid lockdowns.
In Asia, the Japanese government is set to extend the state of emergency covering Tokyo and other regions till March 7 in order to contain the coronavirus, as per media reports.
US stocks jumped on Monday, the first session of February, as Wall Street appeared to shake off concerns about a speculative retail trading mania that largely drove the market's worst weekly sell-off since October.
Meanwhile, a group of 10 Republican senators sent President Joe Biden a letter on Sunday, urging him to consider a smaller, scaled-down COVID-19 relief proposal. His current plan calls for $1.9 trillion in additional fiscal stimulus.
The alternative proposal comes after House Speaker Nancy Pelosi said the chamber will move to pass a budget resolution, the first step toward approving legislation through reconciliation. The process would enable Senate Democrats to approve an aid measure without GOP votes.
In economic data, US manufacturing activity slowed slightly in January. The Institute for Supply Management (ISM) said on Monday its index of national factory activity fell to a reading of 58.7 last month from 60.5 in December.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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