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Market extends losses; auto stocks decline

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Key barometers further extended losses and hit fresh intraday low in mid-afternoon trade. At 14:22 IST, the barometer index, the S&P BSE Sensex, was down 172.98 points or 0.46% at 37,757.35. The Nifty 50 index declined 53.30 points or 0.48% at 11,108.95.

Traders booked profits after the Sensex and the Nifty jumped about 5.25% in the past five sessions.

The broader market was mixed with the S&P BSE Mid-Cap index was trading flat while the S&P BSE Small-Cap index losing 0.35%.

The market breadth was weak. On the BSE, 1053 shares rose and 1505 shares fell. A total of 146 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,265.88 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 727.39 crore in the Indian equity market on 21 July, provisional data showed.

Buzzing Index:

The Nifty Auto index fell 1.36% to 7,196.35 on profit taking. The index added 5.49% in five sessions.

Among the index constituent, Hero MotoCorp (down 3%), TVS Motor Company (down 2.22%), Maruti Suzuki (down 2.21%) and Tata Motors (down 2.16%) declined.

Meanwhile, Mahindra & Mahindra (up 0.92%) and Bharat Forge (up 0.20%) advanced.

Bajaj Auto fell 1.73% to Rs 2952.25 after the two wheeler major's net profit dropped 53% to Rs 528.04 crore on 60% decline in revenue from operations to Rs 3079.24 crore in Q1 June 2020 over Q1 June 2019. EBITDA margin declined to 14.3% in Q1FY21 from 16.1% in Q1FY20. Total vehicles sales slumped 64.47% to 443103 units in Q1FY21 from 1247174 units in Q1FY20.

Stocks in Spotlight:

Crisil was up 1.26% to Rs 1729.50. The ratings agency's consolidated net profit was flat at Rs 66.3 crore on a 13.5% rise in income from operations to Rs 471.8 crore for the quarter ended 30 June 2020 compared to the corresponding period last year.

Ashu Suyash, managing director & CEO, CRISIL, said: "Our businesses demonstrated strong resilience during the COVID-19 pandemic and the attendant lockdowns. Ratings continued its growth trajectory and we saw good demand for our global risk & analytics offerings. The acquisition of Greenwich enabled acquisition of new clients and strengthened our presence in the global benchmarking analytics space."

Alembic Pharmaceuticals gained 2.04% to Rs 1015 after the company reported a 144% jump in consolidated net profit to Rs 301.46 crore on a 41.3% rise in revenue from operations to Rs 1341.32 crore in Q1 June 2020 over Q1 June 2019.

The drug maker's international formulations grew 70% year on year (YoY) to Rs 771 crores in Q1 June 2020. The US Generics grew 73% YoY to Rs 596 crores in Q1 June 2020. The company's India formulations business for the quarter ending 30 June 2020 de-grew by 6% to Rs 306 crore.

EBITDA margin improved to 31% in Q1 June 2020 from 21% in Q1 June 2019. R&D spends in Q1 June 2020 stood at Rs 141 crore, up 2% from Q1 June 2019. The company received 6 ANDA approvals in Q1 June 2020 while it filed 8 ANDAs in same quarter.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 5.817% compared with previous closing of 5.829% in the previous trading session.

In the foreign exchange market, the partially convertible rupee edged lower to 74.7550 compared with its previous closing 74.7475.

In the commodities market, Brent crude for September 2020 settlement slipped 49 cents to $43.83 a barrel. The contract gained 2.40% or $1.04 to end at $44.32 in the previous trading session.

MCX Gold futures for 5 August 2020 settlement gained 0.61% to Rs 49,830.

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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. 14:23 IST