Indices near day's high; metals rally

Key domestic benchmarks were trading near the day's high in morning trade. Shares across Asia rallied as the US Federal Reserve's plans to purchase corporate bonds boosted investors' risk appetite. At 10:28 IST, the barometer index, the S&P BSE Sensex, was up 568.29 points or 1.71% at 33,797.09. The Nifty 50 index added 163.30 points or 1.66% at 9,977.

In the broader market, the S&P BSE Mid-Cap index rose 1.23% while the S&P BSE Small-Cap index gained 1.22%. Both these indices lagged the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1519 shares rose and 496 shares fell. A total of 91 shares were unchanged.

The US Federal Reserve said it will start purchasing corporate bonds on Tuesday through the secondary market corporate credit facility, one of several emergency facilities recently launched by the U.S. central bank to improve market functioning in the wake of the COVID-19 pandemic.

Covid-19 Update:

India reported 1,53,178 active cases of COVID-19 infection and 9,900 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 80,18,742 far with 4,36,406 deaths, according to data from Johns Hopkins University.

Buzzing Index:

The Nifty Metal index was up 3.23% to 1,990.90. The index fell 1.91% on Monday.

Jindal Steel & Power (up 5.92%), JSW Steel (up 4.57%), Steel Authority of India (up 4.27%), Hindustan Copper (up 4.25%), Tata Steel (up 4.23%), Hindustan Zinc (up 2.58%), National Aluminium Company (up 1.99%), Hindalco Industries (up 1.65%), Vedanta (up 0.98%) and NMDC (up 0.06%) advanced.

Q4 Results Today:

Hindustan Petroleum Corporation (up 1.07%), NMDC (down 0.23%), Bank of Maharashtra (up 2.75%), IPCA Laboratories (up 1.35%), Globus Spirits (down 0.32%), Navin Fluorine International (up 0.99%), Schneider Electric Infrastructure (up 1.03%), Ratnamani Metals & Tubes (up 0.54% and Bliss GVS Pharma (up 1.65%) are some of the companies that will announce their quarterly earnings today.

Earnings impact:

CSB Bank jumped 5.54% to end at Rs 149.45 after the private lender reported a net loss of Rs 59.68 crore in Q4 FY20, which is significantly lower as compared to the net loss of Rs 150.64 crore reported in Q4 FY19. Total income rose 18.9% to Rs 475.49 crore after net interest income jumped 31% to Rs 157.54 crore in Q4 March 2020 over Q4 March 2019.

On the asset quality front, the ratio of gross NPAs to gross advances stood at 3.54% as on 31 March 2020 as against 3.22% as on 31 December 2019 and 4.87% as on 31 March 2019. The ratio of net NPAs to net advances stood at 1.91% as on 31 March 2020 as against 1.98% as on 31 December 2019 and 2.27% as on 31 March 2019.

The bank's deposit increased 4.4% to Rs 15,791 crore as on 31 March 2020 from Rs 15,124 crore as on 31 March 2019. Net advances rose 7.1% to Rs 11,366 crore in FY20 from Rs 10,615 crore in FY19.

Tata Motors fell 3.93% to Rs 96.50 after the automaker posted a consolidated net loss of Rs 9,894.25 crore in the Q4 March 2020 as compared to a consolidated net profit of Rs 1,117.48 crore in Q4 March 2019. Net sales during the quarter fell 27.7% year-on-year (YoY) to Rs 61,949.39 crore.

Jaguar Land Rover's (JLR) retail sales declined 12% YoY to 508.7 thousand units in FY20. Tata Motors' (TML) commercial vehicle sales contracted by 22% to 360.8 thousand units while the passenger vehicle sales fell 25% to 148.8 thousand units in FY20 over FY19.

With respect to future outlook, the company said that Q1 FY21 is expected to be significantly weaker in both JLR and TML with the full impact of lockdowns being reflected in the results. Actions are underway to significantly deleverage the Tata Motors Group with JLR to become sustainably cash positive from FY22.

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