Sensex, Nifty turn range bound; breadth positive

The benchmark indices were trading in a narrow range with modest losses in afternoon trade. The Nifty was trading below 14,550 mark. Mounting COVID-19 cases continued in the country and a negative trend in Asian equities spoiled sentiment.

At 13:20 IST, the barometer index, the S&P BSE Sensex, tumbled 330.44 points or 0.68% at 48,451.92. The Nifty 50 index lost 81.80 points or 0.56% at 14,549.30.

Reliance Industries (RIL) (down 1.89%), HDFC Bank (down 1.38%) and ICICI Bank (down 1.67%) were major drags.

In the broader market, the S&P BSE Mid-Cap index skid 0.48%. The S&P BSE Small-Cap index added 1.17%.

 

Buyers outpaced sellers. On the BSE, 1,621 shares rose and 1,277 shares fell. A total of 179 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,465.07 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,419.31 crore in the Indian equity market on 30 April 2021, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 15,28,75,042 with 32,02,699 deaths. India reported 34,13,642 active cases of COVID-19 infection and 2,18,959 deaths while 1,62,93,003 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India recorded more than 26 lakh new cases and nearly 23,800 deaths in the past seven days, although daily infection numbers registered a slight drop after hitting a peak of over 4 lakh on Friday, 30 April 2021. Meanwhile, Uttar Pradesh has extended the 'corona curfew' till 6 May 2021.

Economy:

The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) was reported at 55.5 in April 2021, little changed from March's reading of 55.4, indicating a solid improvement in the health of the sector. Consumer goods was the strongest-performing category, followed by capital goods and then intermediate goods.

GST Collection for April 2021:

The gross Goods and Services Tax (GST) revenue collected in the month of April is at a record high of Rs 1,41,384 crore. Of which CGST is 27,837 crore, SGST is 35,621 crore, IGST is 68,481 crore and Cess is Rs 9,445 crore.

The revenues for the month of April this year are 14% higher than the GST revenues in the month of March 2021. The GST revenues during April 2021 are the highest since the introduction of GST. GST revenues have not only crossed the one lakh crore rupees mark successively for the last seven months but have also shown a steady increase. These are clear indicators of sustained economic recovery during this period.

Further, the government has announced various relief measures for taxpayers under GST law including reduction in interest rate and waiving of late fee. The Finance Ministry has said that a lower rate of interest of 9% for the first 15 days from the due date of payment of tax and 18% thereafter, for the tax payable for tax period of March and April 2021 has been notified for registered persons having aggregate turnover of over Rs 5 crore.

In case of aggregate turnover upto Rs 5 crore, nil rate of interest for the first 15 days from the due date of payment of tax, 9% for the next 15 days, and 18% thereafter, for both normal taxpayers and those under Quarterly Return, Monthly Payment of Taxes (QRMP) Scheme for March and April, 2021 has been notified.

For registered persons having aggregate turnover above Rs 5 crore, the late fee has been waived for 15 days with regard to returns in FORM GSTR-3B furnished beyond the due date for tax periods of these two months. In case of turnover upto Rs 5 crore, the late fee has been waived for 30 days for GSTR-3B returns furnished beyond the due date.

Besides, the Finance Ministry has extended the due date of filing FORM GSTR-1 and Invoice Furnishing Facility- IFF for the month of April due in May has been extended by 15 days. The due date of filing FORM GSTR-4 for Financial Year 2020-21 has also been extended from 30th April to 31st May, 2021. The due date of furnishing FORM ITC-04 for January to March, 2021 quarter has also been extended from 25th April, to 31st of this month.

Politics:

Election results 2021 for West Bengal, Assam, Tamil Nadu, Kerala and Puducherry assemblies were declared on Sunday (May 2). The TMC managed a landslide victory in West Bengal, the same as DMK in Tamil Nadu and Left-led LDF in Kerala. The BJP managed to retain power in Assam and cruised to victory in Puducherry.

Gainers & Losers:

SBI life Insurance Company (up 2.26%), Adani Ports & Special Economic Zone (APSEZ) (up 2.24%), Hindustan Unilever (HUL) (up 2.18%), Maruti Suzuki India (up 2.05%) and Bharti Airtel (up 1.56%) were major gainers in Nifty 50 index.

Titan Company (down 4.44%), Axis Bank (down 2.91%) and State Bank of India (SBI) (down 2.26%) were major losers in Nifty 50 index.

Earnings Impact:

Reliance Industries (RIL) slipped 1.89%. On a consolidated basis, RIL reported 108.36% surge in net profit to Rs 13,227 crore on 9.59% increase in net sales to Rs 1,49,575 crore in Q4 March 2021 (Q4 FY21) over Q4 March 2020 (Q4 FY20). The increase in revenue was primarily due to higher volumes in transportation fuels and better price realizations across O2C segment. The robust performance by retail segment across all formats also added to growth in revenue. EBITDA rose 1.9% quarter-on-quarter (Q-o-Q) and it advanced 2.77% year-on-year (Y-o-Y) to Rs 26,602 crore in Q4 FY21 over Q4 FY20. The sequential improvement was primarily due to improvement in O2C and retail businesses.

IndusInd Bank declined 2.91%. The bank reported 190.2% jump in net profit to Rs 875.95 crore in Q4 FY21 from Rs 301.84 crore in Q4 FY20. Total income during the quarter increased by 0.4% year-on-year (Y-o-Y) to Rs 9,199.48 crore. Operating profit before provisions and contingencies in the fourth quarter was at Rs 3,061.53 crore, up by 7.9% from Rs 2,836.17 crore reported in the same period last year. Provisions and contingencies declined by 23.5% to Rs 1,865.69 crore in Q4 FY21 over Q4 FY20. On the asset quality side, gross non-performing assets (NPAs) stood at Rs 5,794.99 crore as on 31 March 2021 as against Rs 3,650.66 crore as on 31 December 2020 and Rs 5,146.74 crore as on 31 March 2021. The gross NPA ratio surged to 2.67% as on 31 March 2021 from 1.74% as on 31 December 2020 and 2.45% as on 31 March 2020. The net NPA ratio increased to 0.69% as on 31 March 2021 from 0.22% as on 31 December 2020 and 0.91% as on 31 March 2020.

Stocks in Spotlight:

Eicher Motors fell 0.67%. The total VE Commercial Vehicle (VECV) sales surged to 2,145 units in April 2021 as against 85 units in April 2020. On a month-on-month (M-o-M) basis, total VECV sales tumbled 69.51% in April 2021 from 7,037 units in March 2021. Total domestic sales soared to 1,555 units in April 2021 over 38 units sold in April 2021. Total exports jumped to 541 units in April 2021 as compared to 41 units in April 2020. Total Volvo Trucks & Bus sales grew to 49 units in April 2021 over 6 units sold in April 2020.

Total sales of Eicher Motors-owned Royal Enfield stood at 53,298 units in April 2021 over 91 units in April 2020. On a sequential basis, the motorcycle sales have dropped 19.31% in April 2021 as against 66,058 units in March 2021. The sales from "Models with engine capacity upto 350cc" stood at 46,561 units in April 2021. The "Models with engine capacity exceeding 350cc" sales was at 6,737 units in April 2021 over 91 units in April 2020.

Tata Motors lost 1.39% after its sales in the domestic and international market for April 2021 stood at 41,858 units. Sequentially, total domestic tanked 41% to 39,530 units in April 2021 as compared to 66,609 units in March 2021. Total Domestic commercial vehicle (CV) sales slumped 59% to 16,644 units in April 2021 as against 40,609 in March 2021. Domestic passenger vehicle (PV) sales skid 15% to 25,095 units in April 2021 over 29,654 units in March 2021.

Global Markets:

European shares were trading higher while Asian stocks declined on Monday, 3 May 2021. Major markets in China and Japan were closed for holidays.

Wall Street ended lower on Friday, with Amazon, Apple, Alphabet, and other tech-related companies weighing on the S&P 500 and Nasdaq despite recent strong quarterly earnings reports.

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