The benchmark indices bounced back in positive terrain in afternoon trade, tracking firm global cues. At 13:20 IST, the barometer index, the S&P BSE Sensex, rose 74.95 points or 0.14% at 52,012.39. The Nifty 50 index gained 13.35 points or 0.09% at 15,596.15.
Housing Development Finance Corporation (HDFC) (up 1.18%), Bajaj Finance (up 1.78%) and State Bank of India (SBI) (up 1.74%) boosted the indices.
The broader market traded lower. The S&P BSE Mid-Cap index lost 0.11%. The S&P BSE Small-Cap index fell 0.28%.
Sellers outnumbered buyers. On the BSE, 1,211 shares rose and 1,812 shares fell. A total of 133 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 2,412.39 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 179.78 crore in the Indian equity market on 31 May 2021, provisional data showed.
Gainers & Losers:
Oil & Natural Gas Corporation (ONGC) (up 3.12%), Adani Ports and Special Economic Zone (APSEZ) (up 1.18%) and Housing Development Finance Corporation (HDFC) (up 1.18%) were major gainers in Nifty 50 index.
Tata Steel (down 2.79%), JSW Steel (down 2.11%), Grasim Industries (down 1.68%), ICICI Bank (down 1.46%) and Ultratech Cement Co. (down 1.44%) were major losers in Nifty 50 index.
Nifty Result Today:
ITC was down 0.14% ahead of its quarterly result today.
Earnings Impact:
Honeywell Automation India skid 3.38% after the company's net profit declined 6.4% to Rs 104.02 crore in Q4 FY21 compared with Rs 111.14 crore in Q4 FY20. Revenue from operations fell 4.48% to Rs 672.70 crore in Q4 FY21 as against Rs 704.26 crore in Q4 FY20. Profit before tax tumbled 7.17% to Rs 138.26 crore in Q4 FY21 as against Rs 148.94 crore in Q4 FY20. The company said its operations and financial results for the quarter have not been materially impacted by the lockdown. The company said it continues to monitor the economic effects of the pandemic while taking steps to improve its execution efficiencies and financial outcome.
Magma Fincorp hit a 5% upper-circuit at Rs 143.05. On a consolidated basis, Magma Fincorp reported net loss of Rs 647.72 crore in Q4 FY21, higher than net loss of Rs 35.51 crore in Q4 FY20. Total income slipped 4.9% to Rs 587.14 crore in Q4 FY21 from Rs 617.62 crore in Q4 FY20. Pre-tax loss stood at Rs 863.58 crore in Q4 FY21, higher than pre-tax loss of Rs 4.11 crore in Q4 FY20.
Magma Fincorp had announced a series of leadership changes following the Poonawala-controlled Rising Sun Holdings acquiring controlling stake through an equity infusion of Rs 3,456 crore in May 2021. The board, on Monday, appointed Adar Poonawalla as the chairman and Abhay Bhutada as the managing director (MD) of the company. Vijay Deshwal, a seasoned banker with a track record of over two decades, will take charge as chief executive officer (CEO) at Magma Fincorp from the first week of July. He will also be the group CEO of Poonawalla Group's financial services business.
Rupa & Company surged 18.03% after the company posted a consolidated net profit of Rs 65.90 crore in Q4 FY21 compared with net loss of Rs 4.28 crore in Q4 FY20. Net sales surged 153% to Rs 453.06 crore in Q4 FY21 over Q4 FY20. Profit before tax stood at Rs 88.33 crore in Q4 FY21 compared with Rs 1.37 crore in Q4 FY20. EBITDA came at Rs 90.6 crore in Q4 FY21 from Rs 7.9 crore in Q4 FY20. EBITDA margin improved to 20% in Q4 FY21, higher than 4.4% in Q4 FY20. The company posted a 183.1% jump in net profit to Rs 175.26 crore on 35% rise in net sales to Rs 1,309.42 crore in the year ended March 2021 (FY21) over the year ended March 2020 (FY20).
Stocks in Spotlight:
Tata Motors gained 0.28%. The auto major's total sales in the domestic and the international market in May 2021 stood at 26,661 vehicles, down by 36% from 41,858 vehicles sold in April 2021. The company's domestic sales declined 38% to 24,552 vehicles in May 2021 from 39,530 vehicles in April 2021. The company had sold 4,418 vehicles in May last year. While the company's domestic commercial vehicle sales were down by 35% to 9,371 units, domestic passenger vehicle sales dropped by 40% to 15,181 units in May 2021 over April 2021. The auto maker had sold 1,266 commercial vehicles and 3,152 passenger vehicles in May 2020. Commercial vehicle exports fell 8% to 2,030 units from 2,209 units exported in April 2021. The company had exported 222 commercial vehicles in May 2020.
Coal India slipped 0.24%. On a provisional basis, the company's coal production rose 1.7% to 42.10 million tonnes in May 2021 as against 41.40 million tonnes in May 2020. The coal major's offtake surged 37.6% to 55.10 million tonnes in May 2021 as against 40 million tonnes in May 2020. Sequentially, the company's production rose 0.48% and offtake grew 1.85% in May 2021 over April 2021.
Eicher Motors rose 0.01%. VE Commercial Vehicles (VECV), the unlisted subsidiary of Eicher Motors, sold 1,223 units in May 2021, down by 43% as compared with 2,145 units sold in April 2021. VECV's total sales have increased by 78% from 686 vehicles sold in May 2020. While total domestic sales declined by 57.8% to 656 units, total exports fell by 4.1% to 519 units in May 2021 over April 2021. In May 2020, VECV's domestic sales and exports were at 430 units and 231 units, respectively. Total sales of Volvo Trucks & Buses have declined by 2% to 48 units in May 2021 over April 2021, but has increased 92% from 25 units sold in May 2020.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 17,07,24,858 with 35,50,179 deaths. India reported 18,95,520 active cases of COVID-19 infection and 3,31,895 deaths while 2,59,47,629 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India recorded 1,27,510 new COVID-19 cases and 2,795 deaths in the last 24 hours, according to data from the Union Health Ministry. The ministry said cases have been declining for the past few days, with daily new cases being the lowest in 54 days. The recovery rate continues to increase and stands at 92.09% on Tuesday.
Economy:
India's Gross Domestic Product (GDP) contracted by 7.3% in 2020-21, as per provisional National Income estimates released by the National Statistical Office on Monday. GDP growth in 2019-20, prior to the COVID-19 pandemic, was 4%. Meanwhile, the fourth quarter (Q4) of 2020-21 reported expected growth of 1.6% in GDP.
India recorded a Fiscal Deficit of 9.3% of GDP in 2020-21, 0.2% lower than the revised estimate of 9.5% of GDP, according to the Controller General of Accounts (CGA). Total revenue receipts turned out to be about Rs 88,000 crore higher than estimated, driven largely by higher excise and customs collections, while total expenditure was Rs 61,000 crore more than the revised estimate.
Unveiling the revenue-expenditure data of the Union government for 2020-21, the Controller General of Accounts (CGA) on Monday said that the revenue deficit at the end of the fiscal was 7.42%.
The reading of the Index of Eight Core Industries for last month showed an expansion of over 56% from a (-) 37.9% dip in output during the same month of last year. In March this year, the eight sectors had recorded a growth rate of 11.4%.
Manufacturing PMI:
The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) stood at 50.8 in May, down from 55.5 in April. The latest figure pointed to a marginal improvement in business conditions that was the weakest in the current ten-month sequence of expansion.
Commenting on the latest survey results, Pollyanna De Lima, Economics Associate Director at IHS Markit, said: The Indian manufacturing sector is showing increasing signs of strain as the COVID-19 crisis intensifies. Key gauges of current sales, production and input buying weakened noticeably in May and pointed to the slowest rates of increase in ten months. In fact, all indices were down from April." Amid a lack of new work, goods producers reduced headcounts again, with the rate of job shedding quickening in May.
"That said, the detrimental impacts of the pandemic and associated restrictions seen in the manufacturing sector are considerably less severe than during the first lockdown when unprecedented contractions had been recorded.
"Growth projections were revised lower, as firms became more worried about the escalation of the pandemic and local restrictions. The overall degree of optimism towards the year-ahead outlook for output was at a ten-month low, a factor which could hamper business investment and cause further job losses."
Global Markets:
The US Dow Jones index futures were up 166 points, indicating a positive opening in the US market today.
Shares in Europe and Asia advanced on Tuesday, 1 June 2021. China's factory activity expanded at the fastest pace this year in May. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) rose to 52.0 last month, the highest level since December and inching up from April's 51.9.
Markets in the U.S. were closed on Monday on account of Memorial Day.
Meanwhile, the global economic outlook is improving as vaccine rollouts allow businesses to resume operations and as the United States pumps trillions of dollars into the world's largest economy, the Organisation for Economic Cooperation and Development (OECD) said on Monday, nudging its forecasts higher.
The global economy is set to grow 5.8% this year and 4.4% next year, OECD said, raising its estimates from 5.6% and 4% respectively in its last forecasts released in March.
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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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