Indices trade sideways with massive losses in afternoon trade. The Nifty slipped below 8900 level and traded lower. Selling pressure was broad based with banking stocks losing the most. At 13:29 IST, the barometer index, the S&P BSE Sensex, was down 939.52 points or 3.02% at 30,158.21. The Nifty 50 index lost 267.4 points or 2.93% at 8,869.40.
Investors were unimpressed by the government's economic relief measures. A steady rise in coronavirus cases in India also spooked investors. Extension of the nationwide lockdown further hurt sentiment.
In the broader market, the S&P BSE Mid-Cap index was down 3.45% while the S&P BSE Small-Cap index fell 2.64%.
Sellers outpaced buyers. On the BSE, 507 shares rose and 1651 shares fell. A total of 133 shares were unchanged. In the Nifty 50 index, 7 shares advanced while 43 stocks declined.
India's merchandise exports dipped 60.3% to US$ 10.36 billion in April 2020 over a year ago. Meanwhile, merchandise imports also declined 58.6% to US$ 17.12 billion. The trade deficit fell 55.9% to US$ 6.76 billion in April 2020 from $15.33 billion in April 2019.
Merchandise exports in rupees plunged 56.4% to Rs 78951 crore, while imports declined 54.6% to Rs 130525 crore in April 2020 over April 2019. The trade deficit eased to Rs 51574 crore in April 2020 compared with Rs 106412 crore in April 2019.
As per the data released by the Reserve Bank of India, India's services exports increased 1.2% to US$ 18.16 billion in March 2020 over March 2019. Meanwhile, India's services imports declined 2.2% to $11.11 billion in March 2020.
Gainers & Losers:
Infosys (up 2.08%), TCS (up 1.67%) and Vedanta (up 1.51%) were top gainers in Nifty 50 index.
IndusInd Bank (down 8.81%), Zee Entertainment (down 8%), ICICI Bank (down 6.88%) and Maruti Suzuki (down 6.46%) were top losers in Nifty 50 index.
Q4 Results Today:
Bharti Airtel (down 0.38%), Glaxosmithkline Pharmaceuticals (down 2.09%), Torrent Power (down 1.33%), Dr. Lal PathLabs (down 0.87%), Astrazeneca Pharma India (up 1.82%), Delta Corp (down 4.69%) and Maharashtra Scooters (down 4.62%) are some of the companies that will announce their quarterly results today.
Cipla gained 3.27%. On a consolidated basis, Cipla's net profit declined 33% to Rs 245.95 crore on a 0.7% rise in net sales to Rs 4301.60 crore in Q4 March 2020 over Q4 March 2019. The company said its India Rx business grew by 12% on a year on year basis recording a third consecutive quarter of market beating growth. South Africa business continued the strong growth momentum to deliver growth of 10% on a year on year basis in local currency. Cipla reported its Research & Development investment stood at Rs 311 crore in Q4 March 2020, which is 7.1% of sales. Consolidated EBITDA declined 33% to Rs 652 crore in Q4 March 2020 from Rs 972 crore posted in Q4 March 2019. EBITDA margin declined to 15% in Q4 March 2020 from 22% reported in Q4 March 2019.
Crompton Greaves Consumer Electricals fell 1.23% after it reported 29.5% fall in standalone net profit to Rs 99.81 crore on a 15.6% decline in net sales to Rs 1018.05 crore in Q4 March 2020 over Q4 March 2020 over Q4 March 2019.
Growth remained strong across all products till the lockdown (Jan and Feb growth 14% Y-o-Y). Market share increased in Fans and Consumer Lighting. Appliances business continued to deliver strong double digit growth based on excellent consumer offerings behind Coolers and Geysers. Profit before tax stood at Rs 133.90 crore in Q4 March 2020, down by 20.4% from Rs 168.13 crore in Q4 March 2019. PBT margin increased sequentially with strengthened cost reduction programmes neutralizing the adverse volume impact due to Covid- 19, the company said.
Tata Chemicals fell 4.2% after consolidated net profit slumped 48.47% to Rs 197.56 crore on 7.16% decline in revenue from operations to Rs 2,378.09 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax (PBT) dropped 45.28% to Rs 216.88 crore in Q4 March 2020 as against Rs 396.38 crore in Q4 March 2019. Total tax expenses jumped 49.07% to Rs 19.32 crore in Q4 March 2020 as against Rs 12.96 paid in Q4 March 2019. EBITDA dropped 11% to Rs 400 crore in Q4 March 2020 from Rs 447 crore in Q4 March 2019. EBITDA margin stood unchanged at 17% in Q4 March 2020 compared with the same period last year.
Mahindra & Mahindra Finance tumbled 17% after consolidated net profit dropped 65.8% to Rs 234.82 crore on 8.05% rise in total income to Rs 3,148.47 crore in Q4 March 2020 over Q4 March 2019. The company said in order to cover the contingencies that may arise due to COVID-19 Pandemic, it has incorporated the management overlays in the impairment loss allowance and the total provision recognized in the statement of Profit and Loss during the quarter stood at Rs 681.16 crore.
L&T Technology Services (LTTS) jumped 4% after consolidated net profit gained 0.34% to Rs 204.80 crore on 1.66% increase in net sales to Rs 1,446.60 crore in Q4 March 2020 over Q3 December 2019. Consolidated profit before tax fell 0.98% to Rs 271.80 crore in Q4 March 2020 as against Rs 274.50 crore in Q3 December 2019. Tax expenses slipped 4.65% at Rs 65.50 crore in Q4 March 2020 as compared to Rs 68.70 crore paid in Q3 December 2019.
European shares bounced on Monday as investors eyed a gradual economic recovery with many countries easing lockdown. Asian markets edged higher despite U. S. Federal Reserve Chairman Jerome Powell saying that the economy stateside may need a coronavirus vaccine to fully recover.
On the economic data front, Japan's economy shrank at an annualized rate of 3.4% in January-March, government data showed. That marked the country's second straight quarter of contraction, meeting the technical definition of a recession.
In US, stocks recovered from steep losses early Friday to close higher, despite data showing U. S. April retail sales plunged more than forecasts and news the Trump administration will block shipments of semiconductors to China's Huawei Technologies, stoking fears of renewed trade tensions.
However, sentiment was improved by news the House of Representatives was set to vote on another $3 trillion coronavirus package that could be the opening bid in another round of fiscal stimulus.
In economic data, U. S. retail sales fell 16.4% in April, the Commerce Department reported, as businesses remained all but shut down. Excluding autos, sales still dropped 16.2%.
Industrial production collapsed in April, the Federal Reserve said Friday. Industrial output fell a record 11.2%, pulled down by a record drop in manufacturing. Capacity utilization slumped to a record low 64.9% from 72.7% in March.
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