Indices hit day's low; auto stocks decline

The domestic equity barometers extended losses and hit fresh intraday low in mid-afternoon trade. At 14:24 IST, the barometer index, the S&P BSE Sensex, was down 232.51 points or 0.46% to 49,960.82. The Nifty 50 index lost 62.60 points or 0.41% at 15,045.50.

In the broader market, the S&P BSE Mid-Cap index rose 0.34% while the S&P BSE Small-Cap index gained 0.38%.

Buyers outpaced sellers. On the BSE, 1716 shares rose and 1273 shares fell. A total of 175 shares were unchanged.

The undertone of the market was upbeat amid hopes of reopening of economic activity soon as fresh daily COVID-19 cases declined. Encouraging quarterly results also boosted sentiment.

Buzzing Index:

The Nifty Auto index shed 0.55% to 10,267.50. The index rose 5.23% in the past two sessions.

Mahindra & Mahindra (down 1.79%), Maruti Suzuki (down 0.44%) and TVS Motor Company (down 0.38%) declined.

Meanwhile, Ashok Leyland (up 1.63%), Eicher Motors (up 1.17%), Hero MotoCorp (up 0.29%), Bajaj Auto (up 0.22%) and Bharat Forge (up 0.32%) bucked the trend.

Tata Motors tumbled 4.78% to Rs 316.45. On a consolidated basis, the auto major reported net loss of Rs 7,605.40 crore in Q4 FY21 lower than net loss of Rs 9,894.25 crore in Q4 FY20. Total revenue from operations during the quarter increased 41.8% year-on-year (YoY) to Rs 88,627.90 crore in Q4 FY21.

During the period ended March 2020, an exceptional charge of Rs 14,994.30 crore was recognized under the Jaguar Land Rover (JLR)'s reimagine strategy. It comprised of asset write downs of Rs 9,606.11 crore in relation to models cancelled and restructuring costs of Rs 5,388.19 crore.

JLR reported pre-tax profits of 534 million pounds in Q4 FY21. Fourth quarter revenue increased 20.5% YoY to 6.5 billion pounds, led by China and the new Defender.

JLR said that coronavirus cases are still high in many markets while supply chain issues, in particular for semi-conductors, have become more difficult to mitigate and are now impacting production plans for Q1. The company is working closely with affected suppliers to resolve the issues and minimise the effect on customers.

Tata Motors standalone (including joint operations) revenue for the quarter increased 104% to Rs 20,046 crore. The company recorded a pre-tax profit before exceptional Rs 145 crore as against pre-tax loss of Rs 2,215 crore in Q4 FY20. The company's India operations continued its strong sequential recovery in the quarter with CV revenues recovering to pre-pandemic levels and PV revenues reaching multi-year highs.

With respect to outlook, the company said that while demand remains strong, the supply situation over the next few months is likely to be adversely impacted by disruptions from COVID-19 lockdowns in India and semi-conductor shortages worldwide. The company expects Q1 FY22 to be relatively weak due to this as well as rising commodity inflation and expect to improve gradually from the second quarter.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee fell to 73.15 compared with its previous closing of 73.05.

MCX Gold futures for 4 June 2021 settlement shed 0.14% to Rs 48,237.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.16% to 89.89.

The yield on 10-year benchmark federal paper rose to 5.975% as compared to its previous close of 5.976%.

In the commodities market, Brent crude for July 2021 settlement fell $1.16 to $67.55 a barrel. The contract added 75 cents or 1.10% to settle at $68.71 in the previous trading session.

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