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Indices bounce back; PSU banks correct

Capital Market 

Key market barometers bounced back in positive terrain in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was up 7.59 points or 0.02% at 37,937.92. The Nifty 50 index added 5.65 points or 0.05% at 11,167.90.

Gains were capped as traders booked profits after the Sensex and the Nifty jumped about 5.25% in the past five sessions.

In the broader market, the S&P BSE Mid-Cap index rose 0.70% while the S&P BSE Small-Cap index added 0.22%.

The market breadth was positive. On the BSE, 1148 shares rose and 1086 shares fell. A total of 152 shares were unchanged.

Buzzing Index:

The Nifty PSU Bank index slipped 0.75% to 1,461 on profit taking. The index rose 5.17% in the past four sessions.

UCO Bank (down 2.76%), CBI (down 2.72%), Bank of Maharashtra (down 1.67%), Bank of India (down 1.49%) and Jammu and Kashmir Bank (down 1.18%) were the top index losers.

Stocks in Spotlight:

IndiaMART InterMESH rose 4.38% to Rs 2248 after the company's consolidated net profit jumped 128.7% to Rs 74.1 crore in Q1 June 2020 from Rs 32.4 crore posted in Q1 June 2019.

Net sales rose 3.94% year on year (y-o-y) to Rs 153.10 crore in Q1 June 2020. Revenue was primarily driven by marginal improvement in realization of existing customers. Number of paying subscription suppliers were same as last year due to the challenging economic and market conditions amidst the Covid-19 pandemic. Consolidated deferred revenue grew by 3% to Rs 628 crore in Q1FY21 from Rs 610 crore in Q1FY20.

EBITDA margins increased to 48% in Q1FY21 from 25% in Q1FY20 primarily driven by various cost optimization measures leading to sustained and temporary rationalization of expenses. On the operational front, traffic grew to 191 million in Q1FY21 from 184 million in Q1FY20, an increase of 4% YoY and total business enquiries delivered increased to 131 million from 113 million, a growth of 16%.

Syngene International fell 1.09% to Rs 418.65 after consolidated net profit dropped 19.4% to Rs 58 crore on 0.2% increase in net sales to Rs 421.60 crore in Q1 June 2020 over Q1 June 2019. EBITDA margin remained flat at 32% in Q1 FY21 as well as in Q1 FY20.

Syngene's first quarter performance was driven by robust performances in discovery services and the dedicated centres. The national lockdown resulted in a temporary suspension of operations in all divisions. Since restarting, the expansion of shift working and other protection measures for employees allowed the divisions to return to near normal levels of operation and get client projects largely back on schedule.

Global Markets:

Asian markets were trading mixed on Wednesday as rising global coronavirus cases weighed on investor sentiment.

Adding to unease was a report by the U.S. Centers for Disease Control that the number of coronavirus cases in some states is much higher than has been reported. Experts have said all along that the toll from the COVID-19 pandemic is much higher than the confirmed cases would indicate, due to issues with testing and data collection.

The US stock market finished session marginal higher on Tuesday, 21 July 2020, thanks to a relatively better than expected second-quarter earnings reports and guidance from companies including IBM and Coca-Cola. Market cut gains in the final hour of trading after hopes faded for a fresh round of fiscal stimulus in the coming week to prop up an economy reeling from the COVID-19 pandemic.

Market hopes for a fresh round of fiscal stimulus in the coming week faded after Senator Majority Leader Mitch McConnell told reporters that Congress would most likely not pass a new fiscal stimulus bill this week, before the $600 jobless benefit boost runs out for millions of Americans.

Investors were awaiting for talks in Washington, DC, for signs of further coronavirus relief. Democrats and Republicans are facing pressure to pass more legislation to aid the economic recovery but remain split on key issues.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, July 22 2020. 11:26 IST