The domestic equity benchmarks hit fresh intraday low in morning trade, extending yesterday's steep losses. At 10:30 IST, the barometer index, the S&P BSE Sensex, was down 280.16 points or 0.90% at 30,842.73. The Nifty 50 index was down 63.85 points or 0.70% at 9,078.90.
In the broader market, the S&P BSE Mid-Cap index was off 0.13% while the S&P BSE Small-Cap index shed 0.19%.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 770 shares rose and 891 shares fell. A total of 101 shares were unchanged. In the Nifty 50 index 19 shares advanced while 31 shares declined.
Buzzing Index:
The Nifty Metal index rose 1.24% to 1,736.35. The index fell 2.59% on Thursday. This week the index has added 3.57% while the benchmark Nifty 50 index has lost 1.77%.
Steel Authority of India (up 6.39%), Hindustan Zinc (up 3.4%), NMDC (up 3.11%), Tata Steel (up 1.53%), Hindalco Industries (up 1.49%), Jindal Steel & Power (up 1.44%), JSW Steel (up 1.08%), National Aluminium Company (up 1.05%), Hindustan Copper (up 0.19%) and Vedanta (up 0.17%) advanced.
Metal shares were in demand after China's industrial output rose 3.9% in April from a year earlier, improving from a 1.1% fall in March, according to data released Friday by the country's National Bureau of Statistics. This marks the first expansion in the metric for this year from China.
China's manufacturing sector has been significantly impacted by the slowing export demand due to the economic impact emerging from the global coronavirus pandemic even as Chinese factories resumed production. Being the world's largest producer and consumer of industrial metals, a recovery in the Chinese demand and production remains the key factor as far as metal stocks are concerned.
Q4 Results Today:
Cipla (up 0.1%), IIFL Securities (up 3.98%), Crompton Greaves Consumer (up 0.86%), L&T Finance Holdings (up 0.77%), L&T Techonology Services (down 1.19%), Nippon Life India (up 0.12%), Mahindra & Mahindra Finance (up 0.83%) and Tasty Bite Eatables (down 1.25%) are some of the companies that will announce their quarterly results today.
Earnings impact:
Mahindra Lifespace Developers declined 2.47% to Rs 177.90 after reporting consolidated net loss of Rs 223.9 crore in Q4 March 2020 compared with net profit of Rs 31.27 posted in Q4 March 2019. Net sales dropped 56.7% to Rs 101.42 crore in Q4 March 2020 from Rs 234.27 crore posted in Q4 March 2019. The realtor reported a pre-tax loss of Rs 229.45 crore in Q4 March 2020 over a pre-tax profit of RS 35.65 crore in Q4 March 2019.
The company reported an exceptional loss of Rs 134 crore. Mahindra Homes (MHPL), a joint venture of the company, is executing residential projects at NCR and Bengaluru. The residential project in NCR is a joint development with the landowner. The project saw a successful launch in 2015 in a buoyant market. The market has thereafter seen muted demand and declining prices. During the year the company also saw significant cancellations of earlier bookings. Consequently, MHPL has valued its balance inventory as per its accounting policies. Similarly, the company has in turn, based on estimated net present value of forecasted cash flows, provided for impairment of its equity value in MHPL. On a consolidated basis, the impact of impairment is Rs 135 crore, in addition to an impact of Rs 64 crore as share of loss from MHPL JV. This has been done as a matter of prudence considering uncertain market conditions.
Biocon fell 3.16% to Rs 324.70 after consolidated net profit declined 42.3% to Rs 123.40 crore on a 3.4% rise in net sales to Rs 1581 crore in Q4 March 2020 over Q4 March 2019. The small molecules business reported a revenue growth of 15% to Rs 541 crore in Q4 March 2020 led by steady API sales and strong growth in Generic Formulations. The Biologics segment reported a decline of 21% to Rs 357 crore in Q4 March 2020 after reporting three consecutive quarters of robust performance.
Biocon's Branded Formulations business continued to face challenges. For Q4 March 2020, business revenue stood at Rs 117 crore posting a decline of 12% over Q4 March 2019.
The company's consolidated EBITDA stood at Rs 382 crore in Q4 March 2020, declining 11% from Rs 431 crore in the same period last year. EBITDA margin slipped to 23% in Q4 March 2020 from 28% reported in Q4 March 2019.Research & development expenses jumped 36% to Rs 125 crore in Q4 March 2020 over Q4 March 2019.
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