The key equity indices ended with modest losses on Thursday. The Nifty closed below the 15,700 mark. Auto shares witnessed value buying following monthly sales data. Trading was volatile due to expiry of weekly index options on the NSE.
The barometer index, the S&P BSE Sensex, fell 164.11 points or 0.31% to 52,318.60. The Nifty 50 index lost 41.50 points or 0.26% to 15,680. Both these indices have corrected about 1.15% in four sessions.
Infosys (down 1.32%), HDFC Bank (down 0.77%), Reliance Industries (down 0.62%) and HDFC (down 0.57%) were major drags.
In the broader market, the BSE Mid-Cap index slipped 0.19% and the BSE Small-Cap index added 0.32%.
The market breadth was positive. On the BSE, 1639 shares rose and 1570 shares fell. A total of 129 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 18,22,07,431 with 39,47,099 deaths. India reported 5,23,257 active cases of COVID-19 infection and 3,99,459 deaths while 2,94,88,918 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India added 48,786 new cases of COVID-19 while the national recovery rate improved to 96.97%, according to the Union Health Ministry data updated on Thursday.
Cadila Healthcare said it has applied for Emergency Use Authorization (EUA) to the office of Drug Controller General of India (DCGI) for ZyCoV-D - its Plasmid DNA vaccine against COVID-19. The company conducted the largest clinical trial for its COVID-19 vaccine in India so far in over 50 centers.
ZyCoV-D is a plasmid DNA vaccine which when injected produces the spike protein of the SARS-CoV-2 virus and elicits an immune response mediated by the cellular and humoral arms of the human immune system, which play a vital role in protection from disease as well as viral clearance. Shares of Cadila Healthcare lost 0.97% to Rs 638.80.
Economy:
The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) fell to 48.1 in June from 50.8 in May, slipped below the critical no-change mark of 50.0 for the first time since July 2020. The latest reading pointed to a renewed deterioration in the health of the sector that was, however, moderate.
India's eight infrastructure sectors grew 16.8% in May because of the low base of last year, while statewide lockdowns because of the second wave of the coronavirus pandemic meant the output actually contracted 3.7% from April. Coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity count among the core sectors, which constitute 40% of the Index of Industrial Production.
India's fiscal deficit at the end of May came in at 8.2% of the budgeted estimate for FY22 as against 59% in the same period last year, on the back of better revenues and lower subsidy pay out, according to official data released Wednesday. Fiscal deficit in April-May stood at Rs 1.23 lakh crore, data showed. The budget target set for fiscal deficit in FY2021-22 is Rs 11.40 lakh crore.
India's current account deficit (CAD) for the quarter ended March 2021 widened to 1% of GDP, or $8.1 billion, from 0.3% ($2.2 billion) in the preceding quarter on the back of a higher trade deficit. For the quarter ended March 2020, the current account was in a surplus of $600 million due to lower trade volumes.
The Reserve Bank of India (RBI) said that the CAD in Q4FY21 was primarily because of a higher trade deficit and lower net invisible receipts than in the corresponding period of the previous year.
For the full year FY21, the current account balance recorded a surplus of 0.9% of GDP as against a deficit of 0.9% in FY20 on the back of a sharp contraction in the trade deficit to $102.2 billion from $157.5 billion in FY20. This is the first time that the country has recorded an annual current account surplus in 17 years.
India's external debt surged by $11.5 billion year-on-year to $570 billion as of March-end 2021, according to the Reserve Bank of India data released on Wednesday. The external debt to GDP ratio rose to 21.1% as of March-end 2021 from 20.6% a year ago, the data on India's External Debt showed.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 6.046% as compared with 6.051% 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 74.55, compared with its close of 74.3250 during the previous trading session.
MCX Gold futures for 5 August 2021 settlement rose 0.52% to Rs 47,083.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.06% to 92.49.
In the commodities market, Brent crude for September 2021 settlement rose 86 cents at $74.62 a barrel. The contract rose 37 cents, or 0.49% to settle at $75.13 a barrel in the previous trading session.
Foreign Markets:
Most European shares advanced while most Asian stocks ended lower on Thursday.
China's factory activity expanded at a softer pace in June. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) fell to 51.3 last month from May's 52, marking the 14th month of expansion.
Japanese big manufacturers' business confidence improved in the second quarter to hit a two-and-half-year high, a central bank survey showed. Service-sector sentiment also turned positive for the first time in five quarters, the Bank of Japan's (BOJ) "Tankan" survey showed.
In the US, the S&P 500 nabbed its fifth straight record closing high on Wednesday as investors shrugged off positive economic data and looking toward Friday's highly anticipated employment report.
U.S. private payrolls increased more than expected in June. Private payrolls increased by 692,000 jobs in June. Data for May was revised lower to show 886,000 jobs added instead of the initially reported 978,000.
June 2021 Auto Sales:
The Nifty Auto index advanced 0.82% to 10,687.70. The index fell 1.02% in the past two sessions.
Bajaj Auto rose 1.84%. The two-wheeler maker's total sales surged 24% to 346,136 units in June 2021 as against 278,097 units sold in June 2020. Sequentially, Bajaj's total sales soared 27.32% in June 2021 compared with 271,862 units sold in May 2021.
TVS Motor Company added 0.64%. The company registered a growth of 27% in June 2021 with sales of 251,886 units as against sales of 198,387 units in the month of June 2020. Th firm has reduced dealer stocks to support its dealers and channel partners and will produce to maintain adequate inventories for customer demand.
While the company's total two-wheeler sales registered a growth of 25% with sales of 238,092 units, total three-wheeler sales recorded a rise of 89% with sales of 13,794 units in June 2021 over June 2020. The Company's total exports registered sales of 106,246 units in the month of June 2021 as against sales of 53,123 units in June 2020.
Ashok Leyland shed 0.08%. The commercial vehicle maker posted a 169% jump in total sales (domestic + exports) to 6,448 units in June 2021 from 2,394 units sold in June 2020. On a sequential basis, Ashok Leyland's total sales rose 101.5% to in June 2021 from 3,199 units sold in May 2021.
Maruti Suzuki India added 1.01%. The car major recorded total sales of 1,47,368 vehicles in June 2021 as against sales of 57,428 vehicles registered in June 2020. The company had sold 46,555 vehicles in May 2021.
Mahindra & Mahindra (M&M) rose 0.12%. M&M announced that its overall auto sales (passenger vehicles + commercial vehicles + exports) in June 2021 stood at 32,964 vehicles. Sequentially, the company's total auto sales jumped 88.9% in June 2021 from 17,447 units sold in May 2021.
Meanwhile, M&M's tractor division sold a total of 48,222 tractor sales in June 2021, up 32% over 36,544 tractors sold in June 2020.
Tata Motors gained 1.37%. The company said its total sales in the domestic & international market for Q1 FY22 stood at 1,14,784 vehicles compared with 24,978 units sold during Q1 FY21. The company's total domestic sales jumped 125% to 43,704 units in June 2021 from 19,387 units in June 2020. While commercial vehicles (CV) sales jumped 150% to 22,100 units, total passenger vehicle sales increased by 111% to 24,110 units in June 2021 over June 2020.
Eicher Motors gained 0.15%. The company said that VE Commercial Vehicles (VECV) sold 2,438 vehicles in June 2021, registering a growth of 79.5% compared with 1,358 vehicles sold in June 2020. VECV's total sales have increased almost twofold from 1,223 units sold in May 2021.
Escorts fell 1.63%. The company's tractor sales rose 15.5% to 12,533 units in June 2021 from 10,851 units in June 2020. Sequentially, Escorts' total tractor sales zoomed 95.1% in June 2021 compared with 6,423 tractors sold May 2021.
VST Tillers Tractors advanced 2.49%. The company's total sales jumped 13.13% to 3,937 units in June 2021 from 3,480 units sold in June 2020. While power tillers sales rose by 12.5% to 3,010 units, total tractor sales were up 15.16% to 927 units in June 2021 over June 2020.
Stocks in Spotlight:
Spicejet slipped 1.23%. On a consolidated basis, the airline net loss declined to Rs 256.98 crore in Q4 FY21 compared with net loss of Rs 816.25 crore in Q4 FY20. Net sales dropped 34.15% to Rs 1,829.77 crore in Q4 FY21 over Q4 FY20 as business continues to be severely impacted by the second wave of COVID-19 pandemic which has adversely hit operations and travel demand.
Meanwhile, the board has authorised to seek enabling approval of shareholders of the company (which will be valid for 365 days) for raising fresh capital of upto Rs 25,00,00,00,000 through issue of eligible securities to qualified institutional buyers, in accordance with the relevant provisions of applicable law and subject to receipt of applicable regulatory approvals, as may be required.
Vodafone Idea tumbled 8.84% to Rs 9.07. The company recorded a consolidated net loss of Rs 7,022.80 crore in Q4 FY21 as against a net loss of Rs 11,643.5 crore in Q4 FY20. Revenue declined 18.3% to Rs 9,607.6 crore in Q4 FY21 from Rs 11,754.2 crore in Q4 FY20.
The company has registered a decline of 11.8% in revenue on a quarter-on-quarter (Q-o-Q) basis, out of which 9.6% was on account of abolishment of domestic IUC effective from 1 January 2021 and 2.2% was on account of lower number of days in the quarter. Average daily revenue, adjusted for IUC impact was flat Q-o-Q.
Vodafone Idea's subscriber base stood at 267.8 million in Q4FY21, a QoQ decline of 2.0 million. The gross additions continued to improve this quarter as well. Subscriber churn was 3.0% in Q4FY21 as against 2.3% in Q3FY21.
ARPU for Q4 FY21 declined to Rs 107 from Rs 121 in Q3FY21, on account of removal of IUC, adjusting for which ARPU was broadly flat this quarter.
Gross debt (excluding lease liabilities) as of 31 March 2021 was Rs 180310 crore, comprising of deferred spectrum payment obligations of Rs 96270 crore and AGR liability of Rs 60960 crore that are due to the Government and debt from banks and financial institutions of Rs 23080 crore.
The AGR liability is currently taken without considering any impact of corrections which may arise out of the Modification Application filed by the company. Cash & cash equivalents were Rs 350 crore and net debt stood at Rs 179960 crore.
SeQuent Scientific slumped 9.42%. On a consolidated basis, the company's net profit jumped 29.08% to Rs 23.52 crore on 20.37% rise in revenue from operations to Rs 361.82 crore in Q4 March 2021 over Q4 March 2020.
Unichem Laboratories gained 3.27%. The company said it received tentative approval for ANDA of aripiprazole tablets from the US drug regulator. The drug is indicated for Schizophrenia, Irritability Associated with Autistic Disorder and treatment of Tourette's disorder.
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