Benchmarks hover near day's high; ITC jumps 3.2%

Key equity barometers traded in a narrow range near the day's high in morning trade. While FMCG and metal shares were in demand, pharma and PSU banks saw correction.

At 10:23 IST, the barometer index, the S&P BSE Sensex, was up 308.24 points or 0.81% at 38,490.32. The Nifty 50 index added 83.20 points or 0.74% at 11,353.35.

In the broader market, the S&P BSE Mid-Cap index gained 0.43% while the S&P BSE Small-Cap index rose 0.59%.

The market breadth was strong. On the BSE, 1485 shares rose and 731 shares fell. A total of 129 shares were unchanged.

Buzzing Index :

The Nifty FMCG index rose 1.16% to 31,987.70. The index has added 3.6% in four sessions while the benchmark Nifty 50 index rose 2.2% during the same period.

Among the index constituents, Emami (up 5.41%), Dabur India (up 2.52%), Colgate-Palmolive India (up 1.85%), Varun Beverages (up 1.78%) and Godrej Consumer (up 1.74%) were the top index gainers.

Britannia Industries (down 0.26%), Procter & Gamble Hygiene (down 0.18%) and United Spirits (down 0.03%) were the top index laggards.

Cigarette major ITC was up 3.22% to Rs 205.30. It hit a high of Rs 206.20 and a low of Rs 199.95 so far.

Earnings Today:

Adani Ports and Special Economic Zone was up 0.65% ahead of Q1 earnings today.

Among the other stocks, Bajaj Electricals (up 2.27%), Bosch (down 0.41%), KRBL (up 3.21%), Metropolis Healthcare (down 0.37%), Minda Industries (up 0.02%), Motherson Sumi (up 0.09%), Prataap Snacks (up 2.75%), RITES (up 0.18%), Rashtriya Chemicals & Fertilizers (up 0.77%) and Symphony (down 0.54%) will announce their quarterly earnings today.

Earnings Impact:

Bank of Baroda (BoB) declined 2..27% to Rs 47.45 after the bank posted net loss of Rs 864.26 crore in Q1 June 2020 as against net profit of Rs 709.87 crore in Q1 June 2019. Total income declined 2.6% YoY to Rs 20,312.44 crore during the quarter.

The bank's global net interest margin (NIM) during Q1 June 2020 stood at 2.55% while domestic NIM in Q1 June 2020 stood at 2.63% compared with 2.62% and 2.73% respectively during the same period last year.

The bank's provisions and contingencies surged 71.3% to Rs 5627.70 crore in Q1 June 2020 from Rs 3284.88 crore in Q1 June 2019. The bank said it made provisions on standard accounts of Rs 1,811 crore. With respect to COVID-19 provisioning, the bank made fresh provision of Rs 996.11 crore in Q1 June 2020. The bank's provision coverage ratio in Q1 June 2020 stood at 83.30% higher than 77.34% reported in the same quarter last year.

On the asset quality front, the ratio of gross NPAs to gross advances stood at 9.39% as on 30 June 2020 as against 9.4% as on 31 March 2020 and 10.28% as on 30 June 2019. The ratio of net NPAs to net advances stood at 2.83% in Q1 FY21 as against 3.13% in Q4 FY20 and 3.95% in Q1 FY20.

BoB said that the total moratorium on term loans availed is 21.4% of total loan book. Of which 15.7% is by borrowers with outstanding above Rs 10 lakhs who were given an option. The bank's capital adequacy ratio improved to 12.84% in Q1 June 2020 from 11.5% in Q1 June 2019.

KEC International reported 20% decline in consolidated net profit to Rs 71 crore on 9% fall in revenues to Rs 2,207 crore in Q1 June 2020 over Q1 June 2019. EBITDA margin was at 8.8% as on 30 June 2020 as against 10.4% as on 30 June 2019.

Vimal Kejriwal, MD & CEO, KEC International, commented, "With operations nearing pre-COVID levels and an order book plus L1 pipeline of over Rs. 24,500 crore, we are confident of delivering a good performance in FY21." The scrip jumped 6.44% to trade at Rs 291.60.

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