Key benchmark indices are trading firm in early trade on buying demand in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 296.28 points or 0.59% at 50,836.76. The Nifty 50 index was up 66.20 points or 0.44% at 15,241.50. The moderation in daily new Covid cases in India improved risk sentiments. Asian stocks are trading mixed.
The S&P BSE Mid-Cap index was up 0.64%. The S&P BSE Small-Cap index was up 0.85%.
The market breadth, indicating the overall health of the market, is strong. On the BSE, 1624 shares rose and 651 shares fell. A total of 116 shares were unchanged.
On the coronavirus front, lockdown was extended on Sunday in Delhi, Haryana, Rajasthan and Puducherry, with many states already imposing covid-induced restrictions till May-end to rein in the spread of infection.
Delhi chief minister Arvind Kejriwal announced that the ongoing lockdown in the national capital will continue for another week and said the process of "unlock" will start from May 31 in a phased manner if the number of COVID-19 cases continues to decline.
Meanwhile, BioNTech's chief executive reportedly said that the COVID-19 vaccine it developed with U.S. pharmaceutical group Pfizer is likely to be effective against the Indian variant of coronavirus.
Stocks in news:
Hero MotoCorp rose 1.68%. Hero MotoCorp announced that it is gearing up towards a gradual resumption of operations by starting production at all its manufacturing plants in India from 24 May 2021. The company had already commenced single shift production at three of its plants in Gurugram and Dharuhera located in Haryana and at Haridwar in the state of Uttarakhand from 17 May.
Tata Steel fell 1.77%. ONGC rose 0.09%. Tata Steel will replace ONGC in S&P BSE Sensex from June 21.
Shree Cement lost 1.98%. Shree Cement reported 49% jump in consolidated net profit to Rs 798.43 crore on 23.1% rise in net sales to Rs 4204.88 crore in Q4 FY21 over Q4 FY20. The company's board has recommended final dividend of Rs 60 per equity share for the year ended 31 March 2021.
JSW Steel dropped 2.67%. On a consolidated basis, JSW Steel reported a net profit of Rs 4,191 crore in Q4 FY21, steeply higher than net profit of Rs 188 crore in Q4 FY20. Revenue from operations increased 50.6% year-on-year (YoY) to Rs 26,934 crore during the quarter. Operating EBITDA surged to Rs 8,440 crore in Q4 FY21 from Rs 2,975 crore in Q4 FY20. Profit before tax in Q4 FY21 stood at Rs 6,272 crore, steeply higher than Rs 119 crore in Q4 FY20.
Akzo Nobel India rose 1.73%. On a consolidated basis, Akzo Nobel India reported 37% rise in net profit to Rs 74.25 crore on 34% increase in revenue from operations to Rs 781.35 crore in Q4 FY21 over Q4 FY20.
Godrej Industries lost 3.94%. Godrej Industries reported a consolidated net loss of Rs 92.22 crore in Q4 FY21 as against a net profit of Rs 103.39 crore in Q4 FY20.Net sales during the quarter increased by 16.3% year-on-year (YoY) to Rs 2610.69 crore. Total expenditure declined by 10% to Rs 2626.66 crore in Q4 FY21 over Q4 FY20.
United Spirits rose 1.52%. United Spirits reported a standalone net profit of Rs 167.30 crore in Q4 FY21, steeply higher than net profit of Rs 23.90 crore in Q4 FY20. Net sales during the quarter increased 11.6% YoY to Rs 2224.40 crore, driven by continued off-trade momentum and weaker comparatives, offset by contraction of owned business in Andhra Pradesh (AP) and softer footfalls in on-trade channel.
Birlasoft jumped 15.36%. On a consolidated basis, Birlasoft's net profit rose 43.3% to Rs 98.98 crore on 0.5% fall in net sales to Rs 902.86 crore in Q4 March 2021 over Q4 March 2020.
UCO Bank rose 1.36%. UCO Bank informed that the meeting of the board of directors of the bank is scheduled on 27 May 2021 to consider and approve equity capital raising plan for the financial year 2021-22.
Global Markets:
Overseas, Asian stocks are trading mixed on Monday, as investors anxiously awaited a key read on U.S. inflation this week for guidance on monetary policy.
In US, the Dow Jones Industrial Average closed higher Friday, while other major benchmarks slipped on concerns about Federal Reserve policy in the face of rising inflation pressures.
Helping sentiment Friday was a gauge for U.S. manufacturing activity that surged to a record high this month. The IHS Markit Flash U.S. Manufacturing Purchasing Managers' Index jumped to an all-time high of 61.5 in May from 60.5 in April.
However, housing data was soft. Existing-home sales fell 2.7% in April to a seasonally adjusted annual rate of 5.85 million annual rate, according to the National Association of Realtors.
Back home, the domestic equity barometers ended with robust gains on Friday, boosted by banks and financial stocks. The moderation in daily new Covid cases in India improved risk sentiments. The barometer index, the S&P BSE Sensex, surged 975.62 points or 1.97% to 50,540.48. The Nifty 50 index jumped 269.25 points or 1.81% to 15,175.30.
Foreign portfolio investors (FPIs) bought shares worth Rs 510.16 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 649.10 crore in the Indian equity market on 21 May, provisional data showed.
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