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Sensex, Nifty trade almost flat; breadth negative

Capital Market 

Benchmark indices were trading with minor gains in morning trade. The Nifty regained 11,100 mark after briefly slipping below that level in early trade. Global cues were subdued following a record contraction in US gross domestic in the second quarter.

At 10:26 IST, the barometer index, the S&P BSE Sensex, was up 49.48 points or 0.13% at 37,785.63. The Nifty 50 index was up 17.75 points or 0.16% at 11,119.90.

In broader market, the S&P BSE Mid-Cap index was up 0.27% while the S&P BSE Small-Cap index was up 0.46%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 965 shares rose and 1090 shares fell. A total of 102 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 207.30 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 387.24 crore in the Indian equity market on 30 July, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 17,241,298 with 672,062 deaths. India reported 5,45,318 active cases of COVID-19 infection and 35,747 deaths while 10,57,805 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

US Economy:

A first reading on US gross domestic product data for the second quarter confirmed the pandemic pummeled the economy. US GDP collapsed at a 32.9% annualized rate during the second quarter, following a 5% slump in the first quarter. The US economy shrank by its sharpest contraction since the second world war. More depressing signs emerged of the coronavirus pandemic's heavy toll on the country's economy.

The record-setting quarterly fall in economic growth came as another 1.43 million Americans filed for unemployment benefits last week.

Earnings Today:

Indian Oil Corporation (down 0.06%), SBI (up 2.2%), UPL (up 0.42%), Tata Motors (down 0.19%) and Sun Pharmaceutical (up 1.5%) are five Nifty companies that will announce their quarterly earnings today.

Blue Dart (down 1.1%), Deepak Fertilisers (down 0.65%), Dr Lal Pathlabs (up 2.91%), Godrej Agrovet (up 1.29%), Jagran Prakashan (up 0.52%), JSW Energy (up 0.54%), Just Dial (up 0.37%), Motilal Oswal (down 0.75%), NELCO (up 0.19%), NIIT (up 0.9%), Tata Chemicals (down 1.48%), Tata Metalik (up 0.85%), Thyrocare Technologies (down 0.04), UCO Bank (up 0.63%), VA TECH WABAG (up 0.21%) and Teamlease (up 1.14%) are some of the companies that will announce their quarterly results today.

Earnings Impact:

Reliance Industries (RIL) was down 1.75%. The company reported a 31% jump in consolidated net profit to Rs 13,248 crore in Q1 June 2020 compared with Rs 10,141 crore in the corresponding period of last year. Consolidated total income for the quarter stood at Rs 95,626 crore, down 42.11% compared with Rs 165,199 crore year-on-year. The decline in revenue was primarily due to fall in O2C revenues, led by sharp decline of 57.6% in average Brent crude price.

Retail business also witnessed 17% decline in revenues due to lockdown and restrictions in store operations. Overall decline in revenue was partially offset by increase in revenue of Digital services business with strong subscriber addition and significant improvement in ARPU.

EBITDA declined 11.8% to Rs 21,585 crore in Q1 FY21 over Q1 FY20. The decrease in EBITDA was primarily due to lower contribution from O2C business, which was impacted by significant demand destruction and margin pressure across transportation fuels and polyester chain. Lower realizations in export market also impacted the profitability despite higher regional benchmark margins. The margin pressure was partially offset by high asset utilization, integration benefits and cost optimization measures across sites. Closure of stores and restrictions on operations across the country due to COVID-19contributed to decrease in EBITDA of Retail business. This was partially offset by increase in EBITDA of Digital services business due to improved margins and continued subscriber momentum.

Reliance Jio Infocomm's net profit surged 182.8% to Rs 2,520 crore on 33.7% increase in operating revenue to Rs 16,557 crore in Q1 FY21 over Q1 FY20. EBITDA jumped 55.4% to 7,281 crore during the period under review. EBITDA margin expanded 613 bps to 44% during the period under review. ARPU during the quarter of Rs 140.3 per subscriber per month. Total wireless data traffic during the quarter of Rs 1,420 crore GB (30.2% YoY growth) with strong customer engagement and best-in-class network performance.

Torrent Pharmaceuticals jumped 5.46% to Rs 2,569.80 after the company reported a 48.6% jump in consolidated net profit to Rs 321 crore on 0.88% rise in total income to Rs 2,060 crore in Q1 June 2020 over Q1 June 2019. Consolidated EBITDA was up 19% year on year to Rs 664 crore in Q1 June 2020 over Q1 June 2019. Torrent Pharma's R&D spends in Q1 June 2020 were at Rs 108 crore (5% of revenue from operations), declining 21% from Rs 136 crore (7% of revenue from operations) in Q1 June 2019.

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

First Published: Fri, July 31 2020. 10:24 IST