Indices extend gains; VIX slips below 20 mark

Key equity indices extended gains and hit fresh intraday high in mid-afternoon trade. The Nifty marched towards the 14,900 mark. IT shares witnessed some bit of bargain buying.

At 14:24 IST, the barometer index, the S&P BSE Sensex, was up 671.74 points or 1.38% to 49,404.29. The Nifty 50 index added 199.80 points or 1.36% to 14,877.60.

Meanwhile, the NSE's India VIX, a gauge of market's expectation of volatility over the near term, dropped 4.79% to 19.2975.

In the broader market, the S&P BSE Mid-Cap index rose 1.47%. The S&P BSE Small-Cap index gained 1.49%.

Buyers outpaced sellers. On the BSE, 2033 shares rose and 1052 shares fell. A total of 199 shares were unchanged.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee rose to 73.20 compared with its previous closing of 73.29.

MCX Gold futures for 4 June 2021 settlement rose 0.74% to Rs 48,030.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.03% to 90.30.

The yield on 10-year benchmark federal paper rose to 5.977% as compared to its previous close of 5.986%.

In the commodities market, Brent crude for July 2021 settlement rose 10 cents to $68.81 a barrel. The contract added $1.66 or 2.48% to settle at $68.71 in the previous trading session.

Buzzing Index:

The Nifty IT index rose 0.34% to 25,674.05 on value buying. The index declined 2.61% in the past three sessions.

HCL Tech (up 1.25%), Infosys (up 1.03%), Coforge (up 0.96%), Tech Mahindra (up 0.38%) and Wipro (up 0.24%) advanced.

MindTree (down 1.48%), Info Edge India (down 0.97%), Mphasis (down 0.83%) and Larsen & Toubro Infotech (down 0.58%) declined.

Earnings Impact:

Oberoi Realty slipped 0.32% to Rs 531.20. The real estate developer reported 14.6% rise in consolidated net profit to Rs 287.47 crore on a 27.9% increase in revenue to Rs 800.87 crore in Q4 FY21 over Q4 FY20.

EBITDA improved by 0.9% to Rs 384.29 crore for Q4 FY21 from Rs 380.75 crore for Q4 FY20. Total area booked for Q4 FY21 was 10.63 lakh sq. ft. as against 1.27 lakh sq. ft. booked in Q4 FY20 and the total value was Rs 1,957.26 crore for Q4 FY21 as against Rs. 230.28 crore for Q4 FY20.

The company's board passed enabling resolutions for issue of non-convertible debentures up to an aggregate amount of Rs 1500 crore by way of private placement, in one or more tranches.

It also approved issue of equity shares and/ or any other securities convertible into equity for an aggregate amount not exceeding Rs 2000 crore, including premium, by way of one or more qualified institutions placement to qualified institutional buyers.

Federal Bank shed 0.06% to Rs 79.65. The private sector bank's net profit increased by 59% to Rs 478 crore on a 7% fall in total income to Rs 3832 crore in Q4 FY21 over Q4 FY20.

Net Interest Income (NII) improved by 17% to Rs 1,420 crore in Q4 FY21 from Rs 1,216 crore in Q4 FY20. Net Interest Margin (NIM) rose to 3.23% in Q4 FY21 from 3.04% in Q4 FY20.

On the asset quality side, the bank's slippages were at Rs 1,685 crore & write-offs Rs Rs 379 crore in Q4 FY21.

The gross non-performing assets (NPAs) stood at Rs 4602.39 crore as on 31 March 2021 as against Rs 3470.18 crore as on 31 December 2020 and Rs 3530.83 crore as on 31 March 2020.

The gross NPA ratio stood at 3.41% as on 31 March 2021, compared to 2.71% on 31 December 2020 and 2.84% as of 31 March 2020. The net NPA ratio rose to 1.19% as on 31 March 2021 from 0.6% as on 31 December 2020.

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