The domestic equity benchmarks ended with minor losses on Wednesday. The Nifty closed below the 15,750 mark. Pharma shares witnessed some bit of profit taking after a three-day wining streak.
As per provisional closing data, the barometer index, the S&P BSE Sensex, shed 66.95 points or 0.13% to 52,482.71. The Nifty 50 index lost 26.95 points or 0.17% to 15,721.50.
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In the broader market, the S&P BSE Mid-Cap index declined 0.03% while the S&P BSE Small-Cap index rose 56%.
Buyers outpaced sellers. On the BSE, 1716 shares rose and 1515 shares fell. A total of 128 shares were unchanged.
Rising number of delta variant COVID-19 cases in Asia and a border escalation situation on the India-Chinese border weighed on investor sentiment.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 18,18,17,890 with 39,37,978 deaths. India reported 5,37,064 active cases of COVID-19 infection and 3,98,454 deaths while 2,94,27,330 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Addressing media in New Delhi last evening, Joint Secretary in the Health Ministry Lav Agarwal the overall COVID-19 recovery rate has reached the mark of 96.9%. He said, there are currently 565 districts in the country where the case positivity rate is less than 5%.
Agarwal said, by last evening, India has crossed the 33-crore mark in vaccination coverage. He also informed that in rural areas, the vaccination coverage from 1st of May to 24th of June is 9.72 crore doses which comprises 56% of the total vaccination while in urban areas the coverage stands at 7.68 crore doses which is 44%.
Buzzing Index:
The Nifty Pharma index shed 0.14% to 14,310.75, amid some bit of profit taking. The index had gained 2.6% in the past three sessions.
Biocon (down 0.83%) and Aurobindo Pharma (down 0.20%) declined while Divi's Labs (up 1.21%), Cadila Healthcare (up 0.75%) and Alkem Laboratories (up 0.16%) advanced.
Cipla (down 0.72%), Dr Reddy's Laboratories (down 0.24%), Emcure Pharmaceuticals, Sun Pharmaceutical Industries (up 0.32%) & Torrent Pharmaceuticals (down 0.80%) will collaborate for the clinical trial of investigational oral anti-viral drug Molnupiravir for the treatment of mild COVID-19 in India. The five pharma companies have entered into a collaboration agreement, wherein the parties will jointly sponsor, supervise and monitor the clinical trial in India.
Lupin fell 1.03% to Rs 1,149.20. The drug major bagged tentative approval from the USFDA under the US President's Emergency Plan for AIDS Relief for its New Drug Application for Dolutegravir, Lamivudine & Tenofovir Disoproxil Fumarate tablets and antiretroviral Fixed Dose Combination (FDC).
Earnings Impact:
Manali Petrochemical rose 1.03% to Rs 83 after the company's consolidated net profit surged to Rs 91.38 crore in Q4 FY21 from Rs 14.14 crore in Q4 FY20. Revenues during the quarter increased 55.03% YoY to Rs 369.69 crore.
Finolex Cables added 1.25% to Rs 525.80 after the company's consolidated net profit jumped 159.86% to Rs 167.59 crore on 41.43% rise in revenue from operations to Rs 921.35 crore in Q4 March 2021 over Q4 March 2020.
Revenues from Electrical Cables segment grew 42.89% to Rs 746.70 crore and Communication Cables segment revenue increased by 24.01% to Rs 127.39 crore while that from Copper Rods segment dropped 34.09% to Rs 158.65 crore in Q4 FY21 over Q4 FY20.
Uflex soared 15.81% to Rs 552.95 after the company's consolidated net profit soared 163% to Rs 264.95 crore on 43.3% increase in net sales to Rs 2,495.14 crore in Q4 FY21 over Q4 FY20. The company said it witnessed a rise in demand for packaging materials and ancillary businesses while also adding newer clients.
The packaging company's total production volume grew by 33.7% year on year in Q4 FY21 and stood at 126,822 metric tonnes (MT) whereas total sales volume for the quarter clocked in at 136,429 MT, an increase of 43.5% YoY.
Meanwhile, the company announced that it will increase packaging capacity to 7 billion packs per annum by March 2022 and will invest Rs 120 crore for the proposed expansion.
Following stellar numbers from Uflex, shares of other packaging firm namely TCPL Packaging (up 12.44%), Cosmo Films (up 10.10%), Jindal Poly Films (up 5.99%) and Polyplex Corporation (up 4.60%) rallied
EID-Parry (India) lost 4.33% to Rs 426.45 after the company's consolidated net profit tanked 75.4% to Rs 61.61 crore on 7.9% fall in net sales to Rs 3,907.96 crore in Q4 March 2021 over Q4 March 2020.
Triveni Engineering & Industries fell 4.63% to Rs 193.80 after the company's consolidated net profit declined 38% to Rs 85.02 crore on 20% fall in revenue from operations to Rs 1188.07 crore in Q4 FY21 over Q4 FY20.
Meanwhile, the company's board has approved expansion of distillation capacity of the existing and upcoming distilleries located at Muzaffarnagar (UP), Milak Narayanpur sugar unit at Distt Rampur UP and Sabitgarh Distt Bulandshahar (UP), subject to receipt of necessary statutory clearances.
The capex plan will raise total distillation capacity from 520 to 660 KLPD at an aggregate cost of Rs 100 crore (approx.) through low capital cost incidental expansion / debottlenecking through internal accruals. Such expansion will be completed before the commencement of the Sugar season 2022-23.
Dredging Corporation of India declined 3.60% to Rs 398.95 after the company posted a net loss of Rs 110.81 crore in Q4 FY21, higher than net loss of Rs 4.38 crore registered in Q4 FY20. Net sales declined 6.9% to Rs 211.88 crore in Q4 FY21 from Rs 227.62 crore in Q4 FY20.
KRBL fell 3.03% to Rs 240.40 after the company's consolidated net profit declined by 7.7% to Rs 138.08 crore on 8.3% fall in revenue from operations to Rs 973.97 crore in Q4 FY21 over Q4 FY20. Revenue from Agri business stood at Rs 956.14 crore (down 8% YoY) while revenue from Energy business segment was at Rs 41.82 crore (down 1.1% YoY) in the fourth quarter.
Vindhya Telelinks jumped 6.90% to Rs 1316.75 after the company's consolidated net profit surged to Rs 116.03 crore in Q4 FY21 as against Rs 38.26 crore in Q4 FY20. Revenue from operations increased by 21.2% YoY to Rs 556.56 crore during the quarter. The revenue from Cable business segment stood at Rs 256.49 crore (up 177.1% YoY) while revenue from engineering, procurement, and construction (EPC) segment was at Rs 365.06 crore (down 6% YoY) in the fourth quarter.
Stocks in Spotlight:
Reliance Industries (RIL) added 1.19% to Rs 2112. RIL announced the signing of an agreement with Abu Dhabi National Oil Company (ADNOC) for chemical projects at TA'ZIZ in Ruwais, Abu Dhabi. The strategic partnership is for chlor-alkali, ethylene dichloride and polyvinyl chloride (PVC) production facility.
Under the terms of the agreement, TA'ZIZ and Reliance will construct an integrated plant, with capacity to produce 940 thousand tons of chlor-alkali, 1.1 million tons of ethylene dichloride and 360 thousand tons of PVC annually.
Isgec Heavy Engineering jumped 9.89% to Rs 773.65. The company has received order for wet limestone flue gas desulphurisation system and flue gas conditioning system package (FGD-FGC Package) from Odisha Power Generation Corporation. The order is for their 2x660 MW TPPIB Thermal Power Station at Banharpalli, Jharsuguda, Odisha. The scope of work includes design, engineering, procurement, fabrication, construction, installation, commissioning, startup, and testing of FGD- FGC Package.
Global Markets:
European shares fell across the board while most Asian stocks ended higher on Wednesday, 30 June 2021.
China's official manufacturing Purchasing Manager's Index (PMI) grew at a slower clip in June. The reading eased to 50.9 in June from 51 in May.
Japan's industrial output posted the biggest monthly drop in a year in May. Factory output slumped 5.9% in May from the previous month, official data showed on Wednesday, hit by declines in the manufacturing of cars and production machinery to post its largest monthly drop since May last year.
The US stock market drifted further into record heights in a listless day on Tuesday, 29 June 2021, pushing the S&P 500 and the Nasdaq Composite to new records, as an upbeat consumer confidence report of June 2021 bolstered expectations for strong economic growth in the second quarter.
A report released Tuesday morning showed a measure of confidence among U.S. consumers jumped to its highest level in nearly 1-1/2 years in June as growing labor market optimism amid a reopening economy offset concerns about higher inflation. The Conference Board's consumer confidence index raced to a reading of 127.3 this month, the highest level since February 2020, from 120.0 in May.
A separate report showed that home prices across the country rose again in April, continuing their blistering pace. The S&P Case-Shiller national home price index, which covers all nine US census divisions, rose 14.6 per cent year on year in April, data on Tuesday showed. That followed a 13.3% annual jump in March.
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