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Market rallies for 3rd session

Capital Market 

Benchmark indices rallied for the third trading session and ended near the day's high on Wednesday. Banks, financials and auto stocks rallied while metal and pharma shares corrected. The Nifty closed above the 14,850 mark.

As per the provisional closing data, the S&P BSE Sensex, jumped 771.3 points or 1.58% at 49,715.87. The Nifty 50 index gained 197.1 points or 1.35% at 14,850.75.

The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.84% while the S&P BSE Small-Cap index added 1.18%.

Buyers outpaced sellers. On the BSE, 1,782 shares rose and 1185 shares fell. A total of 177 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,454.75 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,463.44 crore in the Indian equity market on 27 April 2021, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 14,87,32,626 with 31,35,531 deaths.

India reported 29,78,709 active cases of COVID-19 infection and 2,01,187 deaths while 1,48,17,371 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India reported 3,60,960 new cases, 3,293 deaths in last 24 hours.

Economy:

The Indian economy is projected to grow at 11% in the current financial year amid the strong vaccine drive, the Asian Development Bank (ADB) said on Wednesday, while cautioning that the recent surge in COVID-19 cases may put the country's economic recovery at risk. "India's economy is expected to grow 11 per cent in fiscal year (FY) 2021, which ends on March 31, 2022, amid a strong vaccine drive," ADB said in its flagship Asian Development Outlook (ADO) 2021 released on Wednesday.

However, ADB cautioned that the surge in COVID-19 cases may put the country's economic recovery at risk. For FY2022, India's GDP is expected to expand at 7%, it added. Further, it said the gross domestic product (GDP) of South Asia is expected to rebound to 9.5% this year, following a contraction of 6% in 2020, before moderating to 6.6% next year (2022), it said.

Earnings Impact:

Bajaj Finserv rallied 3.85% after the company's consolidated net profit surged 403% to Rs 979 crore on 15.74% rise in total income to Rs 15,387.25 crore in Q4 FY21 over Q4 FY20. Consolidated profit before tax jumped 197.45% to Rs 2,358 crore in Q4 FY21 from Rs 792.90 crore posted in Q4 FY20. The company posted a 32.68% rise in net profit to Rs 4,470.46 crore on 11.48% rise in total income to Rs 60,591.57 crore for the year ended March 2021 (FY21) over year ended March 2020 (FY20). Bajaj Finserv participates in the financing business through its 52.74% holding in Bajaj Finance and in the protection business through its 74% holding in two unlisted subsidiaries, Bajaj Allianz General Insurance Company Limited (BAGIC) and Bajaj Allianz life Insurance Company Limited (BALIC). Bajaj Housing Finance Limited (BHFL), which does mortgage business, is also a wholly-owned subsidiary of Bajaj Finance.

Axis Bank rose 1%. The private lender reported net profit of Rs 2,677 crore in Q4 FY21 compared with net loss of Rs 1,387.78 crore in Q4 FY20. Total income during the quarter declined marginally by 0.03% to Rs 20,213.46 crore in Q4 FY21 over Q4 FY20. The bank posted a pre-tax profit of Rs 3,569.67 crore in Q4 FY21 compared with pre-tax loss of Rs 1,878.91 crore in Q4 FY20. The bank's operating profit for the quarter grew 17% Y-o-Y and 13% Q-o-Q to Rs 6,865 crore. Net interest income (NII) increased by 11% Y-o-Y to Rs 7,555 crore in Q4 FY21. Net interest margin (NIM) for Q4 FY21 was 3.56%, as against 3.55% for Q4 FY20. Provisions (other than tax) and contingencies stood at Rs 3,294.98 crore in Q4 FY21 compared to Rs 7,730.02 crore in Q4 FY20.

Bajaj Finance surged 8.39% after the NBFC's consolidated net profit jumped 42% to Rs 1,347 crore on 5% decline in total income to Rs 6,855 crore in Q4 FY21 over Q4 FY20. New loans booked during Q4 FY21 stood at 5.47 million, down by 9% over 6.03 million in Q4 FY20. Customer franchise as of 31 March 2021 was at 48.57 million compared with 42.60 million as of 31 March 2020.

Bajaj Finance acquired 2.26 million new customers in Q4 FY21 compared with 1.85 million in Q4 FY20. Net Interest Income (NII) for Q4 FY21 stood at Rs 4,659 crore as against Rs 4,684 crore in Q4 FY20. Interest income reversal for the quarter was at Rs 298 crore as compared to Rs 122 crore in Q4 FY20. Total operating expenses to net interest income for Q4 FY21 stood at 34.5% over 31% in Q4 FY20.

Britannia Industries skid 1.86% after the company's net profit fell 3.3% to Rs 360.07 crore on 8.2% rise in net sales to Rs 3,038.13 crore in Q4 FY21 over Q4 FY20. The FMCG company reported a consolidated revenue growth of 13% Y-o-Y (year-on-year) for the year to Rs 12,883 crore. Consolidated operating profit jumped 39% to Rs 2,311 crore in FY21 over FY20. Consolidated operating profit margin recorded an increase of 340 bps in FY21 from FY20. The return on capital employed stood at 40% for the year.

Nippon Life India Asset Management (NAM India) rose 0.16%. NAM India reported a consolidated net profit of Rs 167 crore in Q4 FY21 compared with net profit of Rs 4 crore in Q4 FY20. Total income during the quarter increased by 142% year-on-year (Y-o-Y) to Rs 362 crore. Nippon Life India Asset Management is an asset manager of Nippon India Mutual Fund (NIMF). For the quarter ended 31 March 2021, NIMF's average assets under management was Rs 2,28,586 crore, an increase of 12% year-on-year.

United Breweries (UBL) advanced 3.49% after the company's consolidated net profit soared 133.2% to Rs 97.53 crore on an 8.4% rise in net sales to Rs 1,544.64 crore in Q4 FY21 over Q4 FY20. During the quarter, the volumes rose 9% Y-o-Y (year-on-year) while EBITDA stood at Rs 273 crore and EBITDA margin stood at 17.7%. The company's control on costs and working capital resulted in strong free operating cash flows and net positive cash as on 31 March 2021.

TVS Motor Company soared 13.98% after the company's standalone net profit surged 292% to Rs 289 crore in Q4 FY21 from Rs 74 crore in Q4 FY20. Revenue from operations grew by 53% at Rs 5,322 crore for the quarter under review against Rs 3,481 crore reported in the fourth quarter of 2019-20. Profit before tax in Q4 March 2021 stood at Rs 387 crore, up by 331% from Rs 90 crore in Q4 March 2020. The overall two-wheeler and three-wheeler sales including exports registered a growth of 47% at 9.28 lakh units in the quarter ended March 2021 as against 6.33 lakh units registered in the quarter ended March 2020.

VST Industries fell 1.65%. The company's standalone net profit rose 3.1% to Rs 72.83 crore on 4.6% decline in net sales to Rs 277.84 crore in Q4 FY21 over Q4 FY20. Profit before tax (PBT) slipped 3% to Rs 96.73 crore in Q4 FY21 over Q4 FY20.

Global Markets:

Shares in Europe and Asia advanced on Wednesday ahead of the US Federal Reserve's policy decision. Japan's retail sales rose 5.2% in March as compared with a year ago, according to government data.

In US, the S&P 500 closed little changed near its record level on Tuesday as investors braced for a big batch of tech earnings. The Federal Reserve kicked off its two-day policy meeting Tuesday. The central bank is likely to hold and keep its asset-buying program in place at the same levels for the rest of 2021, despite growing concerns about an overheating economy.

Consumer confidence climbed sharply to hit a pandemic high with The Conference Board's index jumping to 121.7, the highest since February 2020.

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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, April 28 2021. 15:32 IST
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