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Sensex, Nifty end near day's high

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Benchmark indices ended with strong gains on Tuesday, tracking positive global cues. The Nifty managed to close above the crucial 11,500 mark. Banks, IT and pharma shares advanced while auto and FMCG shares declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex added 287.72 points or 0.74% at 39,044.55. The Nifty 50 index gained 91.7 points or 0.8% at 11,531.75.

The broader market advanced for second trading session after the Sebi on 11 September issued a circular mandating multi cap funds to allocate least 25% of their portfolios in large-, mid- and small-caps each by February 2021. The S&P BSE Mid-Cap index gained 0.88% while the S&P BSE Small-Cap index rose 1.45%.

Buyers outpaced sellers. On the BSE, 1586 shares rose and 1162 shares fell. A total of 164 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 298.22 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 120.35 crore in the Indian equity market on 14 September, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 29,190,588 with 9,27,245 deaths. India reported 9,90,061 active cases of COVID-19 infection and 80,776 deaths while 38,59,399 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

India's retail inflation which is measured by the Consumer Price Index (CPI) eased to 6.69% in the month of August, the data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed. The CPI for the month of July was revised to 6.73% from 6.93%.

The Scheduled commercial banks (SCBs) credit growth was steady on sequential basis to 5.5% YoY to Rs 1,02,11,730 crore as on 28 August 2020, compared with 5.5% growth a fortnight ago. The credit growth has decelerated from 10.2% at end July 2019. Aggregate deposits growth of the scheduled banks increased 10.9% YoY at Rs 1,41,76,765 crore as on 28 August 2020, compared with 11.0% growth a fortnight ago and 9.7% rise a year ago.

RBI Mandates Automated Recognition of NPAs:

The Reserve Bank of India (RBI) on Monday mandated the automation of bad-loan recognition by banks by 30 June 2021. The processes of provisioning calculation and income recognition will also have to be automated and banks will be required to upgrade their systems accordingly. In its circular, the central bank said banks had earlier been advised to have appropriate information technology (IT) systems in place for identification of non-performing assets (NPA) and generation of related data/returns, both for regulatory reporting and banks' own management information system (MIS) requirements. The system-based asset classification shall be an ongoing exercise for both downgradation and upgradation of accounts.

Earnings Impact:

PVR fell 3.26% after the multiplex chain reported a consolidated net loss of Rs 225.62 crore in Q1 June 2020 compared with net profit of Rs 17.57 crore in Q1 June 2019. Net sales during the quarter slumped 98.6% year-on-year (YoY) to Rs 12.70 crore. Pre-tax loss stood at Rs 341.92 crore in Q1 FY21 as against a pre-tax profit of Rs 27.96 crore in Q1 FY20. Results for quarter ended 30th June, 2020 are not comparable with results for quarter ended 30th June, 2019 as the current quarter is impacted by temporary closures of cinemas and suspension of operations, the company said in a statement.

Apollo Hospitals Enterprise was up 3.28%. The healthcare company posted a consolidated net loss of Rs 226.24 crore in Q1 June 2020 compared with net profit of Rs 49.15 crore in Q1 June 2019. Consolidated net sales fell 15.6% to Rs 2,171.50 crore in Q1 June 2020 over Q1 June 2019. Pre-tax loss stood at Rs 267 crore in Q1 June 2020 compared with pre-tax profit of Rs 94.40 crore in Q1 June 2019. Current tax expense for the quarter slumped 86.4% year-on-year to Rs 8.28 crore. The Q1 earnings was announced post trading hours yesterday, 14 September 2020.

Steel Authority of India (SAIL) fell 0.63% after the state-run steel major posted a consolidated net loss of Rs 1226.47 crore in Q1 June 2020 compared with net profit of Rs 102.68 crore in Q1 June 2019.

Consolidated net sales for Q1 June 2020 stood at Rs 9,067.52 crore, nearly 39% lower than net sales of Rs 14,820.89 crore in Q1 June 2019. SAIL posted a pre tax loss of Rs 1930.23 crore quarter ending June 2020 as against a pre-tax profit of Rs 150.46 crore in quarter ending June 2019. The result was announced after market hours yesterday, 14 September 2020.

Future Retail gained 3.17%. The company registered a consolidated net loss of Rs 561.95 crore in Q1 June 2020 compared with net profit of Rs 159.24 crore in Q1 June 2019. Consolidated net sales slumped 73.9% to Rs 1,358.11 crore in Q1 June 2020 over Q1 June 2019. The COVID-19 pandemic and consequent lockdown imposed throughout the country, has had a significant adverse impact on the business operations and the financial results of the company for the quarter ended 30 June 2020.

Raymond lost 0.13% after the company reported a consolidated net loss of Rs 242.15 crore in the June quarter as compared to a net loss of Rs 14.85 crore recorded in the same period last year. Net sales slumped 88.6% year-on-year (YoY) to Rs 163.16 crore during the quarter. The company has undertaken cost rationalization & various cost control measures relating to sales & marketing, manpower, rentals and others. This has resulted in operating cost at Rs 275 crore, lower by 50% on a sequential basis from Rs 551 crore in Q4FY20 and lower by 44% on a YoY basis from Rs 494 crore in Q1FY20.

JB Chemicals & Pharmaceuticals soared 8% after the company's consolidated net profit surged 92.4% to Rs 119.51 crore on 17.1% increase in net sales to Rs 522.29 crore in Q1 June 2020 over Q1 June 2019. The business performance during the quarter improved due to a 18% growth in revenue coupled with an increase in other income (primarily from current investments) and a better product mix with savings in some heads of expenditure on account of the current situation due to the COVID-19 pandemic.

Global Markets:

The US Jones 30 Futures were up 162.5 points, indicating a positive start to equities on Wall Street today.

Shares in Europe and Asia advanced on Tuesday as investors focused on upcoming central bank meetings by the U. S. Federal Reserve, Bank of Japan and Bank of England.

Retail sales in China rose 0.5% in August from a year ago, the first positive report for the year so far, China's National Bureau of Statistics said Tuesday. Still, retail sales for the first eight months of the year were down 8.6% from a year ago, the bureau said.

China's industrial production grew 5.6% in August from a year ago while fixed-asset investment declined 0.3% for the first eight months of the year.

US stocks ended sharply higher on Monday as signs of progress in developing a COVID-19 vaccine and a spurt of multibillion-dollar deals lifted investor optimism. Tech sentiment was lifted by news of Nvidia buying chipmaker Arm Holdings from SoftBank for $40 billion.

Meanwhile, ByteDance rejected Microsoft's bid to buy TikTok's U. S. operations. Instead, ByteDance has chosen Oracle to be TikTok's U. S. technology partner, and Oracle will take a significant stake in the business.

Sentiment was also boosted by signs of progress toward a coronavirus vaccine. AstraZeneca resumed phase three trials for its coronavirus vaccine in the U. K. following a halt due to safety concerns. However, its trials in the U. S. remains on hold as American regulators investigate the side effects flagged in the U. K. study, reports showed.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, September 15 2020. 15:31 IST
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