Indices near day's high; breadth strong

Key equity indices traded near the day's high with decent gains in morning trade. The market rebounded after yesterday's rout. The Nifty scaled 14,400 mark. IT and pharma shares saw selling pressure while banks and financial stocks were in demand.

At 10:25 IST, the barometer index, the S&P BSE Sensex, was up 350.54 points or 0.73% at 48,233.77. The Nifty 50 index added 105.1 points or 0.73% at 14,415.30.

In broader market, the S&P BSE Mid-Cap index was up 1.24% while the S&P BSE Small-Cap index was added 1.5%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1811 shares rose and 577 shares fell. A total of 126 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 136,500,459 with 29,44,714 deaths.

India reported 12,64,698 active cases of COVID-19 infection and 171,058 deaths while 122,53,697patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India on Monday reported 1,61,736 new COVID-19 cases and 879 deaths in last 24 hours, according to data from the Union Health Ministry.

Economy:

The Index of Industrial Production (IIP) showed industrial output in India once again shrink in February, going down by 3.6%. IIP had contracted by an updated 0.9% in January after rising by 1.6% in December.

The all-India general CPI inflation rose to 5.52% in March 2021 (new base 2012=100), compared with 5.03% in February 2021. The corresponding provisional inflation rate for rural area was 4.61% and urban area 6.52% in March 2021 as against 4.19% and 5.96% in February 2021.

Buzzing Index:

The Nifty PSU Bank index jumped 2.63% to 2,040.50, after tumbling 9.26% in yesterday's trading session.

Bank of Maharashtra (up 10.28%), Indian Overseas Bank (up 6.21%), Bank of India (up 4.05%), Central Bank of India (up 3.85%), Indian Bank (up 2.91%), Bank of Baroda (up 2.8%) and Punjab National Bank (up 2.36%) were top gainers in PSU bank space.

Earning Impact:

TCS down 2.89%. The IT major reported a 6.3% growth in consolidated net profit to Rs 9,246 crore in Q4 March 2021 over Q3 December 2020. Consolidated revenue grew by 4% to Rs 43,705 crore in Q4 March 2021 over Q3 December 2020. On a year-on-year (YoY) basis, TCS' net profit rose 14.87% and revenues rose 9.41% in Q4 March 2021. In constant currency terms, the company's revenues grew 4.2% on a quarter-on-quarter (QoQ) basis and 5.9% on a YoY basis during the March quarter. The IT major's operating margin expanded 0.2% QoQ and 1.7% YoY to 26.8% in Q4 March 2021. TCS' order book at $9.2 billion in Q4 March 2021, was the highest ever total contract value (TCV) in a quarter, taking the total yearly order book at $31.6 billion, a 17.1% growth compared to previous financial year.

All verticals showed good sequential growth, but a couple continue to lag prior year level - BFSI (+7% QoQ, +13.3% YoY), Retail and CPG (+4% QoQ, -0.9% YoY), Life Sciences and Healthcare (+3.8% QoQ, +19.3% YoY), Manufacturing (+3.9% QoQ, +1.3% YoY), Technology & Services (+2.8% QoQ, +3.9% YoY) and Communications & Media (+1.8% QoQ, -4% YoY). The company's board has proposed a final dividend of Rs 15 per share.

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