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Sensex drops 138 pts, Nifty below 15,700

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Capital Market

The key barometers declined further and hit fresh intraday low in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, dropped 137.95 points or 0.26% at 52,094.48. The Nifty 50 index lost 27.10 points or 0.17% at 15,663.25.

HDFC Bank (down 1.03%), ICICI Bank (down 1.25%) and Reliance Industries (RIL) (down 0.48%) dragged the market.

The broader indices outperformed the benchmarks. The S&P BSE Mid-Cap index rose 0.44%. The S&P BSE Small-Cap index added 0.72%.

Buyers outpaced sellers. On the BSE, 1,820 shares rose and 1,246 shares fell. A total of 148 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,079.20 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 278.97 crore in the Indian equity market on 3 June 2021, provisional data showed.

 

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 17,21,65,628 with 37,01,957 deaths. India reported 16,35,993 active cases of COVID-19 infection and 3,40,702 deaths while 2,65,97,655 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

A total of 1,32,364 new infections were registered in a day, while the death count increased to 3,40,702 with 2,713 daily new fatalities, according to the data updated at 8 AM today. The recovery rate stood at 93.08%.

RBI Policy Outcome:

The Reserve Bank of India (RBI) kept the policy repo rate unchanged at 4% while maintaining its accommodative stance after the conclusion of the Monetary Policy Committee (MPC) meeting today, 4 June 2021.

RBI's MPC began its bi-monthly monetary policy deliberations on Wednesday, 2 June 2021. On the basis of an assessment of the current and evolving macroeconomic situation, the MPC at its meeting today (4 June 2021) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4%. Consequently, the reverse repo rate under the LAF remains unchanged at 3.35% and the marginal standing facility (MSF) rate and the Bank Rate at 4.25%.

The MPC also decided to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward.

These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.

CPI inflation is projected at 5.1% during 2021-22: 5.2% in Q1; 5.4% in Q2; 4.7% in Q3; and 5.3% in Q4:2021-22; with risks broadly balanced. Real GDP growth is projected at 9.5% in 2021-22, consisting of 18.5% in Q1; 7.9% in Q2; 7.2% in Q3; and 6.6% in Q4:2021-22.

Economy:

India's unemployment rate in May shot up sharply to its highest level in the last one year at 11.9% compared to 7.97% in April, shows the data from the Centre for Monitoring Indian Economy. The unemployment rate had come down to 10.18% in June 2020 after touching the peak of 23% in April and May 2020 during the nationwide lockdown.

Gainers & Losers:

ONGC (up 2.86%), Grasim Industries (up 2.76%), Coal India (up 2.31%), Larsen & Toubro (L&T) (up 1.86%) and Indian Oil Corporation (IOCL) (up 1.82%) were major gainers in Nifty 50 index.

Hindalco Industries (down 1.33%), Nestle India (down 1.20%), Hindustan Unilever (HUL) (down 0.99%), Tata Steel (down 0.90%) and Titan Company (down 0.90%) were major losers in Nifty 50 index.

Earning Impact:

Quess Corp slipped 1.93%. The company posted a consolidated net loss of Rs 58 crore in Q4 FY21, lower than net loss of Rs 630 crore in Q4 FY20. Net sales rose 0.3% to Rs 3,004 crore in Q4 FY21 as against Rs 2,994.59 crore in Q4 FY20. The company reported a pre-tax loss of Rs 31.38 crore in Q4 FY21 as against a pre-tax loss of Rs 594.36 crore in Q4 FY20. EBITDA tumbled 77.5% to Rs 38 crore in Q4 FY21 from Rs 169 crore in Q4 FY20. EBITDA margin slipped to 1.26% in Q4 FY21 from 5.63% in Q4 FY20. Lockdown related losses in Q4 FY21 from training and skill development and food businesses amounted to Rs 20 crore versus Q4 FY20.

Stocks in Spotlight:

BEML advanced 3.28% after the state-run firm said that it has started manufacturing 960 liters per minute (LPM) medical oxygen plants at its KGF complex (Karnataka) under a ToT agreement with DEBEL, Bengaluru under DRDO. BEML has received orders for 100 units from Defence Bio-Engineering & Electro Medical Laboratory (DEBEL) in May 21, under 'PM Cares' fund and the same is expected to be supplied by end July 2021. In co-ordination with district level medical authorities, BEML is also establishing a 960 LPM capacity medical oxygen plant in one of the designated hospitals in Karnataka, under CSR.

Angel Broking rallied 3.73% after the stock brokerage reported strong business in May 2021. The company's client base jumped 140.4% year on year to 4.84 million clients in May 2021 over May 2020. On a sequential basis, client base grew by 9.5% last month from 4.42 million clients in April 2021. Gross Client Acquisition stood at 0.43 million in May 2021, up 298.2% over 0.11 million in May 2020. On a sequential basis, Gross Client Acquisition grew 36.1% in May 2021 over April 2021.

Number of trades in May 2021 stood at 86.49 million, up 117.9% over 39.70 million trades in May 2020. The figure was up 18.4% over April 2021. The company's average daily turnover (ADTO) overall soared 778% year on year to Rs 4,75,200 crore in May 2021. ADTO rose 7.5% in May 2021 over April 2021.

Power Mech Projects soared 11.41% after HDFC Mutual Fund (MF) added 0.88% stake in the company via bulk deal on the NSE yesterday, 3 June 2021.

Global Markets:

Most shares in Europe and Asia declined on Friday, 4 June 2021, after U.S. equities sagged amid robust economic data that stoked concerns about a pullback in central bank stimulus.

US stocks ended lower on Thursday, though they came off lows on signs President Joe Biden may be willing to compromise on corporate taxes.

Strong U.S. jobs data and record service-sector growth underscored the recovery from the pandemic. The Institute for Supply Management said its services survey rose to a record 64% in May from 62.7% in April. Also Thursday, IHS Markit said its final U.S. services purchasing managers index reading came in at 70.4 in May, its highest level since data began in 2009. A figure above 50 indicates growth in activity.

Meanwhile, private-sector employment in the US jumped by 978,000 in May, according to the ADP National Economic Report.

Further, weekly data on applications for unemployment benefits also painted a positive picture for the labor market in the US. First-time claims for benefits fell to 385,000 last week, the first reading below 400,000 since the pandemic began.

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First Published: Jun 04 2021 | 1:30 PM IST

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