Key benchmark indices pared losses in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, declined 324.37 points or 0.66% at 48,710.30. The Nifty 50 index lost 119.50 points or 0.83% at 14,314.20.
Reliance Industries (up 1.83%), HDFC Bank (up 1.72%) and ITC (up 1.47%) supported the indices.
The broader market traded lower. The S&P BSE Mid-Cap index fell 1.93%. The S&P BSE Small-Cap index dropped 1.70%.
Sellers outpaced buyers. On the BSE, 2,073 shares rose and 839 shares fell. A total of 137 shares were unchanged. In Nifty 50 index, 10 stocks advanced while 39 stocks declined. 1 stock remained unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 971.06 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 942.07 crore in the Indian equity market on 15 January 2021, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 9,50,45,802 with 20,30,842 deaths. India reported 2,08,012 active cases of COVID-19 infection and 1,52,419 deaths while 1,02,11,342 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
Excise duty mop-up jumped 48% in the current fiscal on the back of a record increase in taxes on petrol and diesel, that more than made up for the below normal fuel sales. Excise duty collection during April-November 2020, was at Rs 1,96,342 crore, up from Rs 1,32,899 crore mop-up during the same period in 2019, according to data from the Controller General of Accounts (CGA).
Meanwhile, bank credit grew 3.2% to Rs 107.05 lakh crore in the first nine months of the current financial year, against a growth of 2.7% posted in the corresponding period of 2019-20. In the fortnight ended March 27, 2020, bank advances stood at Rs 103.72 lakh crore. Bank deposits rose 8.5 per cent to Rs 147.27 lakh crore in the April-December 2020 period as against an increase of 5.1 per cent a year ago, according to the recent data released by the Reserve Bank of India.
Gainers & Losers:
UPL (up 4.83%) and Britannia Industries (up 1.36%) were other major gainers in Nifty 50 index.
Tata Motors (down 5.17%), ONGC (down 4.39%), Tata Steel (down 4.29%), Hindalco Industries (down 4.05%) and IndusInd Bank (down 3.87%) were major losers in Nifty 50 index.
Earning Impact:
HDFC Bank was trading firm after the private lender reported 18.1% rise in net profit to Rs 8,758.29 crore on 4.1% increase in total income to Rs 37,522.92 crore in Q3 FY21 over Q3 FY20. Net interest income for the quarter ended 31 December 2020 grew by 15.1% to 16,317.6 crore from 14,172.9 crore for the quarter ended 31 December 2019, driven by advances growth of 15.6%, and a core net interest margin for the quarter of 4.2%. The bank's focus on deposits helped in maintaining a healthy liquidity coverage ratio at 146%, well above the regulatory requirement.
On the asset quality side, gross non-performing assets (NPAs) stood at Rs 8,825.56 crore as on 31 December 2020 as against Rs 11,304.60 crore as on 30 September 2020 and Rs 13,427.25 crore as on 31 December 2019. The bank's provisions and contingencies rose by 12.2% to Rs 3,414.13 crore in Q3 FY21 over Q3 FY20. The bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 8,656 crore as on 31 December 2020.
Pre-provision Operating Profit (PPOP) improved by 17.3% Rs 15,186.02 crore in the third quarter as compared to the corresponding quarter of the previous year. The total credit cost ratio was at 1.25% in the quarter ending 31 December 2020 as compared to 1.41% in the quarter ending 30 September 2020 and 1.29% in the quarter ending 31 December 2019.
L&T Finance Holdings skid 6.14% after the company's consolidated net profit fell 51.4% to Rs 287.75 crore on 3% decline in total income to Rs 3,622 crore in Q3 December 2020 over Q3 December 2019. As a prudent measure, the company continues to carry an additional provision of Rs 1,739 crore in Q3 December 2020. This is on account of macro prudential provisions, COVID-19 and accelerated Expected Credit Losses (ECL) provisions on Stage 1 & 2 assets, which are over and above the ECL model on GS3 and Stage 1 & 2 assets. The NBFC's Average Assets under Management (AAUM) of the investment management business stood at Rs 68,976 crore in Q3 December 2020. The AUM for equity and fixed income asset classes as on 31 December 2020 stood at Rs 38,906 crore and Rs 22,483 crore, with a growth of 9% and 20%, respectively, Q-o-Q basis.
Stocks in Spotlight:
Mastek slumped 7.96% after the company said John Owen will relinquish his role as Group CEO on 18 January 2021. Ashank Desai, vice chairman & managing director, will assume the responsibilities of the group chief executive officer until a new group chief executive officer is appointed.
Caplin Point Laboratories fell 0.69%. Caplin Point Laboratories announced that its subsidiary, Caplin Steriles, has entered into a strategic partnership with JAMP Pharma Group for six injectable products to be filed shortly in Canada.
Global Markets:
European stocks were trading lower on Monday. The COVID-19 pandemic and rollout of vaccinations continues to dominate headlines. The Netherlands saw several thousand people protest against lockdown measures on Sunday before they were dispersed by riot police.
Meanwhile, the U.K. continues to lead the pace when it comes to the rollout of vaccinations; on Monday, it is broadening out its program to offer a first dose of the vaccine to anyone aged 70 and over, and those who are considered clinically extremely vulnerable.
Asian stocks traded mixed on Monday as investors in the region reacted to Chinese economic data releases, including the country's GDP print for the fourth quarter.
China reported GDP rose 2.3% last year as the world struggled to contain the coronavirus pandemic. Gross domestic product grew by 6.5% in the fourth quarter from a year ago, official data from National Bureau of Statistics showed. However, Chinese consumers remained reluctant to spend, as retail sales contracted 3.9% for the year. Retail sales for the fourth quarter rose 4.6% from a year ago.
Markets in the U.S. are closed on Monday for a holiday. US stocks fell on Friday as traders weighed President-elect Joe Biden's $1.9 trillion stimulus plan along with the latest earnings from some of the biggest U.S. banks. The Dow Jones Industrial Average closed 177.26 points, or 0.6% lower, at 30,814.26. The S&P 500 dipped 0.7% to 3,768.25, and the Nasdaq Composite slid 0.9% to end the day at 12,998.50.
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