Domestic equity market extended gains for the third consecutive session, boosted by strong Q4 results and vaccine optimism. HDFC twins and Bajaj twins supported the indices. The broader market displayed strength across sectors with strong buying interest in banks and auto stocks.
The S&P BSE Sensex, jumped 789.70 points or 1.61% at 49,733.84. The Nifty 50 index gained 211.50 points or 1.44% at 14,864.55.
The Sensex rose 3.88% and the Nifty jumped 3.65% in three consecutive sessions.
In the broader market, the BSE Mid-Cap index rose 0.99% and the BSE Small-Cap index gained 0.71%. Both these indices underperformed the Sensex.
The market breadth was strong. On the BSE, 1,785 shares rose and 1,178 shares fell. A total of 181 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 14,87,32,626 with 31,35,531 deaths.
India reported 29,78,709 active cases of COVID-19 infection and 2,01,187 deaths while 1,48,17,371 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India reported 3,60,960 new cases, 3,293 deaths in last 24 hours.
The existing lockdown-like restrictions in Maharashtra, imposed to stem the COVID-19 spread, will be extended by 15 days beyond 30 April 2021, Health Minister Rajesh Tope said on Wednesday.
Economy:
The Indian economy is projected to grow at 11% in the current financial year amid the strong vaccine drive, the Asian Development Bank (ADB) said on Wednesday, while cautioning that the recent surge in COVID-19 cases may put the country's economic recovery at risk. For FY2022, India's GDP is expected to expand at 7%, it added.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 6.056% as compared with 6.055% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 74.36, compared with its close of 74.66 during the previous trading session.
MCX Gold futures for 4 June 2021 settlement fell 0.90% to Rs 46,875.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.15% to 91.04.
In the commodities market, Brent crude for June 2021 settlement rose 14 cents at $66.56 a barrel. The contract rose 77 cents, or 1.17% to settle at $66.42 a barrel in the previous trading session.
Foreign Markets:
Shares in Europe and Asia advanced on Wednesday ahead of US Fed's policy outcome and US President Joe Biden's session of Congress.
Japan's retail sales rose 5.2% in March as compared with a year ago, according to government data.
In US, the S&P 500 closed little changed near its record level on Tuesday as investors braced for a big batch of tech earnings.
The US Federal Reserve kicked off its two-day policy meeting Tuesday. The central bank is likely to hold and keep its asset-buying program in place at the same levels for the rest of 2021, despite growing concerns about an overheating economy.
US consumer confidence climbed sharply to hit a pandemic high with The Conference Board's index jumping to 121.7, the highest since February 2020.
Meanwhile, US President Joe Biden is scheduled to give his first joint address to Congress Wednesday night, and will lay out his agenda for pandemic recovery and economic development.
In his speech, the president will seek to build public support for two massive packages - the American Jobs Plan and the American Families Plan. The White House says both proposals if passed by Congress would be "fully paid for" by tax hikes on the richest Americans and corporations.
Stocks in Spotlight:
TVS Motor Company soared 14.06% after the company's standalone net profit surged 292% to Rs 289 crore in Q4 FY21 from Rs 74 crore in Q4 FY20. Revenue from operations grew by 53% at Rs 5,322 crore for the quarter under review against Rs 3,481 crore reported in the fourth quarter of 2019-20. Profit before tax in Q4 March 2021 stood at Rs 387 crore, up by 331% from Rs 90 crore in Q4 March 2020.
Info Edge (India) rose 1.52% after the company announced that it will sell its stake worth Rs 750 crore in Zomato via offer for sale (OFS) in the food delivery aggregator's upcoming initial public offering (IPO).
State Bank of India (SBI) rose 2.95% after the executive committee of the bank's central board approved long term fund raising of upto $2 billion, through a public offer/private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2021-22.
Axis Bank rose 1.22%. The private lender reported net profit of Rs 2,677 crore in Q4 FY21 compared with net loss of Rs 1,387.78 crore in Q4 FY20. Total income during the quarter declined marginally by 0.03% to Rs 20,213.46 crore in Q4 FY21 over Q4 FY20. The bank posted a pre-tax profit of Rs 3,569.67 crore in Q4 FY21 compared with pre-tax loss of Rs 1,878.91 crore in Q4 FY20. The bank's operating profit for the quarter grew 17% Y-o-Y and 13% Q-o-Q to Rs 6,865 crore. Net interest income (NII) increased by 11% Y-o-Y to Rs 7,555 crore in Q4 FY21. Net interest margin (NIM) for Q4 FY21 was 3.56%, as against 3.55% for Q4 FY20. Provisions (other than tax) and contingencies stood at Rs 3,294.98 crore in Q4 FY21 compared to Rs 7,730.02 crore in Q4 FY20.
Bajaj Finserv rallied 4.06% after the company's consolidated net profit surged 403% to Rs 979 crore on 15.74% rise in total income to Rs 15,387.25 crore in Q4 FY21 over Q4 FY20. Consolidated profit before tax jumped 197.45% to Rs 2,358 crore in Q4 FY21 from Rs 792.90 crore posted in Q4 FY20. The company posted a 32.68% rise in net profit to Rs 4,470.46 crore on 11.48% rise in total income to Rs 60,591.57 crore for the year ended March 2021 (FY21) over year ended March 2020 (FY20).
Bajaj Finance surged 8.32% after the NBFC's consolidated net profit jumped 42% to Rs 1,347 crore on 5% decline in total income to Rs 6,855 crore in Q4 FY21 over Q4 FY20. New loans booked during Q4 FY21 stood at 5.47 million, down by 9% over 6.03 million in Q4 FY20. Customer franchise as of 31 March 2021 was at 48.57 million compared with 42.60 million as of 31 March 2020. Bajaj Finance acquired 2.26 million new customers in Q4 FY21 compared with 1.85 million in Q4 FY20. Net Interest Income (NII) for Q4 FY21 stood at Rs 4,659 crore as against Rs 4,684 crore in Q4 FY20. Interest income reversal for the quarter was at Rs 298 crore as compared to Rs 122 crore in Q4 FY20. Total operating expenses to net interest income for Q4 FY21 stood at 34.5% over 31% in Q4 FY20.
Britannia Industries skid 1.69% after the company's net profit fell 3.3% to Rs 360.07 crore on 8.2% rise in net sales to Rs 3,038.13 crore in Q4 FY21 over Q4 FY20. The FMCG company reported a consolidated revenue growth of 13% Y-o-Y (year-on-year) for the year to Rs 12,883 crore. Consolidated operating profit jumped 39% to Rs 2,311 crore in FY21 over FY20. Consolidated operating profit margin recorded an increase of 340 bps in FY21 from FY20. The return on capital employed stood at 40% for the year.
United Breweries (UBL) advanced 3.06% after the company's consolidated net profit soared 133.2% to Rs 97.53 crore on an 8.4% rise in net sales to Rs 1,544.64 crore in Q4 FY21 over Q4 FY20. During the quarter, the volumes rose 9% Y-o-Y (year-on-year) while EBITDA stood at Rs 273 crore and EBITDA margin stood at 17.7%. The company's control on costs and working capital resulted in strong free operating cash flows and net positive cash as on 31 March 2021.
VST Industries fell 0.95%. The company's standalone net profit rose 3.1% to Rs 72.83 crore on 4.6% decline in net sales to Rs 277.84 crore in Q4 FY21 over Q4 FY20. Profit before tax (PBT) slipped 3% to Rs 96.73 crore in Q4 FY21 over Q4 FY20.
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