Sensex, Nifty register attain record closing highs

The main indices rose for fourth consecutive trading session and registered another record closing high on Thursday. The Nifty closed tad below the 16,300 mark. Metal, IT and FMCG saw buying demand while banking and financial shares came under pressure.

The barometer index, the S&P BSE Sensex, gained 123.07 points or 0.23% at 54,492.84. The Nifty 50 index rose 35.8 points or 0.22% at 16,294.60. The Nifty hit a record high of 16,349.45 while the BSE Sensex hit an all time of 54,717.24 in intraday today. Indices have now logged in record closing highs for third trading session in a row.

Broader markets underperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.1% while the S&P BSE Small-Cap index lost 0.43%.

Sellers outnumbered the buyers. On the BSE, 1,151 shares rose and 2,081 shares fell. A total of 119 shares were unchanged.

Among the sectoral indices on the BSE, the S&P BSE Telecom index (up 3.39%), the S&P BSE Metal index (up 1.37%) and the S&P BSE Teck index (up 0.93%) outperformed the S&P BSE Sensex. Meanwhile, the S&P BSE Realty index (down 1.06%), the S&P BSE Bankex (down 0.52%) and the S&P BSE Consumer Discretionary Goods & Services index (down 0.50%) underperformed the S&P BSE Sensex.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 20,02,42,092 with 42,56,850 deaths. India reported 4,11,076 active cases of COVID-19 infection and 4,26,290 deaths while 3,09,74,748 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India saw a single day rise of 42,982 new coronavirus infections taking the total tally of COVID-19 cases to 3,18,12,114, while the active cases increased to 4,11,076. The death toll climbed to 4,26,290 with 533 fresh fatalities. The active cases comprise 1.29% of the total infections, while the national COVID-19 recovery rate was recorded at 97.37%.

Earnings Impact:

GAIL (India) rose 0.32%. The company's consolidated net profit soared 235.49% to Rs 2,157.15 crore on a 44.36% jump in revenue from operations to Rs 17,588.64 crore in Q1 FY22 over Q1 FY21. Consolidated profit before tax surged 248.58% to Rs 2,540.25 crore in Q1 FY22 as against Rs 728.74 crore in Q1 FY21.

Escorts fell 0.77%. The company's reported standalone net profit of Rs 185.2 crore in quarter ended 30 June 2021, up by 101% from Rs 92.2 crore in corresponding quarter of the previous fiscal. Revenue from operations rose by 57.4% to Rs 1,671.5 crore in Q1 FY22 over Q1 FY21. EBIDTA improved by 95% to Rs 233.2 crore in Q1 FY22 from Rs 119.6 crore in Q1 FY21. With regard to the Escorts Agri Machinery (EAM) division, the company said that the tractor sales volume at 25,935 tractors for the quarter ended June 2021 went up by 42.9% as against 18,150 tractors in the corresponding period last fiscal. Segmental revenues increased by 48% to Rs 1,411.4 crore in quarter ending June 2021 compared with the corresponding period last fiscal.

Hindustan Petroleum Corporation (HPCL) slipped 2.5% after the company's standalone net profit declined by 36.2% to Rs 1,795 crore in Q1 FY22 from Rs 2,813.83 crore in Q1 FY21. Net sales increased by 92.5% YoY to Rs 72,166.39 crore during the quarter. As compared with Q4 FY21, the company's net profit and net sales have fallen by 40.5% and 3.2%, respectively. Total expenses surged 76% to Rs 75,560.66 crore in Q1 FY22 from Rs 42,941.72 crore in Q1 FY21. The company incurred a loss of Rs 71.35 crore during the quarter on account of foreign currency transactions and translations. Profit before tax in Q1 FY22 stood at Rs 2,396.85 crore, down by 35.7% from Rs 3,728.41 crore in Q1 FY21. Average gross refining margin (GRM) during the quarter ended 30 June 2021 was $3.31 per barrel as against $0.04 per barrel during the corresponding quarter of the preceding financial year. Crude throughput declined by 36.8% to 2.51 million metric tonnes (MMT) in Q1 FY21 from 3.97 MMT in Q1 FY21. It is lower by 42.8% as compared with 4.39 MMT in Q4 FY21.

Apollo Tyres fell 1.37%. The company's consolidated net profit stood at Rs 127.79 crore in Q1 FY22 as compared to a net loss of Rs 134.58 crore in Q1 FY21. Consolidated net sales soared 59.1% to Rs 4584.47 crore in Q1 FY22 from Rs 2881.74 crore in Q1 FY21. Pre-tax profit was at Rs 161.36 crore in Q1 FY22 as against a pre-tax loss of Rs 162.20 crore in Q1 FY21

Adani Total Gas fell 0.25%. The company's consolidated net profit soared 266.43% to Rs 142.58 crore on a 152.82% jump in revenue from operations to Rs 522.27 crore in Q1 FY22 Q1 FY21. Consolidated profit before tax surged 196.35% to Rs 185.46 crore in Q1 FY22 as against Rs 62.58 crore in Q1 FY21.

Sumitomo Chemical India fell 0.5%. The company's consolidated net profit increased by 33.4% to Rs 105.75 crore on a 20.7% rise in net sales to Rs 782 crore in Q1 FY22 over Q1 FY21. As compared with Q4 FY21, the company's net profit and net sales are higher by 95.4% and 46.4%, respectively. Profit before tax in Q1 FY22 stood at Rs 142.34 crore, up by 30.7% from Rs 108.91 crore in Q1 FY21.

Caplin Point Laboratories added 6.21% after the company's consolidated net profit increased by 31.1% to Rs 71.53 crore on a 25.6% rise in total revenue to Rs 309.65 crore in Q1 FY21. As compared with Q4 FY21, the company's net profit and total revenue has risen by 5.3% and 7.5%, respectively. EBITDA improved by 30.4% to Rs 101.82 crore in Q1 FY22 from Rs 78.09 crore in Q1 FY21. EBITDA margin was at 32.9% as on 30 June 2021 as against 31.7% as on 30 June 2020. Profit before tax in Q1 FY22 stood at Rs 89.52 crore, up by 30.4% from Rs 68.62 crore in Q1 FY21.

Hikal jumped 11.17% after the company's consolidated net profit increased by 3.3 times to Rs 50.54 crore in Q1 FY22 from Rs 15 crore in Q1 FY21. Total revenue from operations increased by 29.5% YoY to Rs 456.78 crore in the first quarter. On the segmental front, Pharmaceuticals revenue was Rs 274.07 crore (up 28.3% YoY) and Crop protection revenue was Rs 182.71 crore (up 31.3% YoY) in Q1 FY22. Profit before tax in Q1 FY22 stood at Rs 68.39 crore, which is higher by 3x as compared with Rs 22.79 crore in Q1 FY21.

Global Markets:

European markets mostly advanced on Thursday morning as investors digested more corporate earnings and await a key monetary policy decision from the Bank of England.

Asian stocks traded mixed following declines overnight on Wall Street. U.S. stocks closed mostly lower on Wednesday, with the S&P 500 falling from a record high after data signaled a slowdown in jobs growth in July, and General Motors tracked its worst day since early March.

Shares of General Motors dropped sharply, weighing on the broader market, after the automaker missed earnings expectations for the second quarter. The automaker did raise its guidance for a key profit metric for the rest of the year.

Vice Chairman Richard Clarida said the Fed is on track for a liftoff in interest rates in 2023 and an announcement later this year on paring bond purchases. Clarida painted an upbeat picture of the outlook while acknowledging that the rapid spread of the delta virus strain poses a downside risk.

A measure of US services industry activity jumped to a record high in July. The Institute for Supply Management said on Wednesday its non-manufacturing activity index raced to 64.1 last month, the highest reading in the series' history, from 60.1 in June.

The ADP private payroll survey showed a gain of 330,000 jobs for July. The Labor Department's official jobs report, which typically has more impact with investors, will be released on Friday.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 6.207% as compared with 6.199% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 74.17, compared with its close of 74.1950 during the previous trading session.

MCX Gold futures for 5 October 2021 settlement fell 0.14% to Rs 47,825.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.06% to 92.21.

In the commodities market, Brent crude for October 2021 settlement rose 19 cents at $70.57 a barrel. The contract fell $2.03, or 2.80% to settle at $70.38 a barrel in the previous trading session.

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