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Market tumbles in early trade; breadth positive

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Key benchmark indices are trading weak in early trade on selling pressure in index pivotals. Market reacted to election results of the five states which were declared on May 2 and the record high GST revenue for April released on May 1. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 497.24 points or 1.02% at 48,285.12. The Nifty 50 index was down 147.20 points or 1.01% at 14,483.90. The Nifty dropped below the psychological 14,500 mark in opening trade. Shares of auto companies were in focus as investors reacted to the auto sales figures for the month of April.

The S&P BSE Mid-Cap index was down 0.81%. The S&P BSE Small-Cap index was up 0.28%.

The market breadth, indicating the overall health of the market, is positive. On the BSE, 1077 shares rose and 994 shares fell. A total of 95 shares were unchanged.

On the coronavirus front, investors continue monitoring the Covid situation in India as the country continues to battle a deadly second wave of infections. Authorities reported 392,488 new cases in the previous 24 hours to push total cases to 19.56 million. So far, the virus has killed 215,542 people.

On the political front, election results 2021 for West Bengal, Assam, Tamil Nadu, Kerala and Puducherry assemblies were declared on Sunday (May 2). The TMC managed a landslide victory in West Bengal, the same as DMK in Tamil Nadu and Left-led LDF in Kerala. The BJP managed to retain power in Assam and cruised to victory in Puducherry.

On the macro front, the gross Goods and Services Tax (GST) revenue collection for April, 2021 hit yet another peak of Rs 1,41,384 crore, of which CGST was Rs 27,837 crore, SGST Rs 35,621,and IGST Rs 68,481 crore. Collections in April 2021 have surpassed even those of March.

Stocks in news:

Reliance Industries (RIL) fell 1.86%. On a consolidated basis, RIL reported 108.36% surge in net profit to Rs 13,227 crore on 9.59% increase in net sales to Rs 149,575 crore in Q4 March 2021 (Q4FY21) over Q4 March 2020 (Q4FY20).

EBITDA rose 1.9% quarter-on-quarter (QoQ) and it advanced 2.77% year-on-year (YoY) to Rs 26,602 crore in Q4FY21 over Q4FY20. The sequential improvement was primarily due to improvement in O2C and retail businesses.

The company's board also declared a final dividend of Rs 7 per share for the financial year ended March 2021.

IndusInd Bank rose 1.24%. IndusInd Bank reported 190.2% surge in standalone net profit to Rs 875.95 crore on 0.45% increase in total income to Rs 9,199.48 crore in Q4 March 2021 (Q4FY21) over Q4 March 2020 (Q4FY20).

Yes Bank dropped 7.29%. Yes Bank reported standalone net loss to Rs 3,787.75 crore in Q4 March 2021 (Q4FY21) as compared with net profit of Rs 2,628.61 crore in Q4 March 2020 (Q4FY20). Total income dropped 60.34% to Rs 4,805.30 crore.

TCS slipped 0.28%. The board of TCS at its meeting held on 12 April 2021, had appointed Samir Seksaria as chief financial officer. Prior to being appointed as CFO, he was heading the financial analytics, planning and business finance functions. Seksaria replaces V Ramakrishnan ('Ramki') who retired from the services of the company effective 30 April 2021.

State Bank of India (SBI) lost 2.38%. SBI has reportedly reduced home loan interest rate to 6.70%. It said home loan interest rates are now starting from 6.70% for loans up to Rs 30 lakh and 6.95% for loans above Rs 30 lakh to Rs 75 lakh. The interest rate on home loans above Rs 75 lakh is 7.05%.

Shares of auto companies were in focus as investors reacted to the auto sales figures for the month of April.

Maruti Suzuki India rose 0.23%. Maruti Suzuki India posted total sales of 159,691 units in April 2021. Total sales in the month include domestic sales of 137,151 units, sales to other OEMs 5,303 units and exports of 17,237 units. Since April 2020 had lockdown due to COVID19 and almost zero sales, a comparison with April 2020 doesn't have any meaning, Maruti Suzuki India said.

Tata Motors dropped 1.82%. Tata Motors' sales in domestic and international market stood at 41,858 units in April 2021. Due to zero sales during April 2020 because of the lockdown there is no comparable figures available. Total sales were 66,609 units in March 2021.

Mahindra & Mahindra (M&M ) rose 0.22%. M&M announced that its overall auto sales (passenger vehicles+ commercial vehicles+ exports) for the month of April 2021 stood at 36,437 vehicles. The units sold in April this year is not comparable with April 2020, since no vehicles were sold last year in the domestic market due to COVID related lockdown, M&M said.

Natco Pharma advanced 2.23%. Natco Pharma has received emergency use approval for Baricitinib tablets, 1mg, 2mg and 4mg strengths from Central Drugs Standard Control Organization (CDSCO) in India. Baricitinib in combination with Remdesivir, is used for treatment of COVID-19 positive patients.

Global Markets:

Asian stocks are trading mixed on Monday, with thinner trading volumes expected as major markets in China and Japan are closed for holidays.

Wall Street ended lower on Friday, with Amazon, Apple, Alphabet, and other tech-related companies weighing on the S&P 500 and Nasdaq despite recent strong quarterly earnings reports, said a Reuters report.

Back home, equity indices snapped four day rising streak and ended with deep losses on Friday. Mixed global cues, soaring new Covid-19 cases in the country and uncertainties surrounding vaccination weighed on the sentiment. The barometer index, the S&P BSE Sensex, slumped 983.58 points or 1.98% at 48,782.36. The Nifty 50 index slipped 263.80 points or 1.77% at 14,631.10.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,465.07 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,419.31 crore in the Indian equity market on 30 April, provisional data showed.

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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: Mon, May 03 2021. 09:30 IST