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Volatile session ends with decent gains

Business Finance

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Key benchmark indices ended with decent gains on Tuesday, tracking positive Asian shares amid optimism about a potential vaccine for the coronavirus. Domestic shares also witnessed bargain hunting after the Sensex and the Nifty lost about 6% in the past three session. However, gains were capped due to rising coronavirus cases in India.

As per provisional closing, the barometer S&P BSE Sensex rose 167.19 points or 0.56% at 30,196.17. The Nifty 50 index gained 64.45 points or 0.73% at 8,887.70.

The Nifty opened higher at 8,961.70 and hit fresh intraday high of 9,030.35 in morning trade. Selling emerged at higher level which dragged the index to the day's low of 8,855.30 in mid-afternoon trade.

The broader market was mixed. The S&P BSE Mid-Cap index was up 0.52% while the S&P BSE Small-Cap index fell 0.2%.

The market breadth was negative. On the BSE, 1028 shares rose and 1262 shares fell. A total of 170 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 48,04,167 far with 3,18,527 deaths. India reported 58,802 active cases of COVID-19 infection and 3,163 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

In a bid to contain the spread of the novel coronavirus pandemic, the Centre on 17 May 2020 extended the nationwide lockdown till 31 May 2020.

Buzzing Index:

The Nifty Bank index declined 0.56% to 17,474.85, extending its losing run to fourth consecutive trading session. The index has slumped 11% in four trading days from its previous closing high of 19,634.95 on 13 May 2020.

Bank of Baroda (down 5.18%), Bandhan Bank (down 3.92%), Federal Bank (down 3.16%), Punjab National Bank (down 2.56%), IndusInd Bank (down 2.24%), SBI (down 1.55%), Axis Bank (down 1.09%), IDFC First Bank (down 0.76%) and HDFC Bank (down 0.73%) were top losers in bank index.

Q4 Results Today:

Bajaj Finance (up 1.02%), Apollo Tyres (up 0.11%), Tata Power Co. (up 1.6%) and Ujjivan Small Finance Bank (up 1.15%) are some of the companies that will announce their quarterly results today.

Earnings Impact:

Bharti Airtel jumped 10.9%. The telecom major reported a consolidated net loss of Rs 5327 crore in Q4 March 2020 (Q4 FY20) as against net profit of Rs 107.20 crore in Q4 March 2019 (Q4 FY19). The company took a hit due to an exceptional item of Rs 7,004 crore in the quarter, which comprises mainly of a charge on account of reassessment of regulatory cost based on a recent judgment on one-time spectrum charge (OTSC) related matter.

Net sales jumped 15.1% to Rs 23,722.70 crore during the period under review. EBITDA rose 51.7% to Rs 10,326 crore in Q4 FY20 over Q4 FY19. EBITDA margin stood at 43.5% as on 31 March 2020 as compared to 33% as on 31 March 2019.

The company said its average revenue per user (ARPU) rose 25.20% to Rs 154 in Q4 FY20 from Rs 123 in Q4 FY19. Growth was broad based and all segments registered healthy underlying growth, the company said. The company total customer base increased by 4.9% to 42.3 crore customers in Q4 March 2020 from 40.3 crore customers in Q4 March 2019.

Gabriel India hit an upper circuit of 5% at Rs 73.50 after net profit jumped 53.72% to Rs 26.58 crore on a 16.78% fall in revenue from operations to Rs 424.64 crore in Q4 March 2020 over Q4 March 2019. Total expenses falling 16.78% to Rs 405.46 crore, profit before tax (PBT) contracted 13.22% to Rs 22.33 crore in Q4 FY20 over Q4 FY19. The result was announced during market hours today.

The company's profitability was aided by lower tax expense. Current tax expenditure shrunk 50.93% to Rs 5.45 crore in Q4 FY20 from Rs 11.12 crore in Q4 FY19.

Astrazeneca Pharma India slumped 10.6% after net profit declined 2.4% to Rs 9.58 crore on 2.4% increase in net sales to Rs 194.90 crore in Q4 March 2020 over Q4 March 2019. Profit before tax stood at Rs 13.35 crore in Q4 March 2020, rising 57.6% year on year from Rs 8.47 crore in Q4 March 2019. The result was announced after market hours yesterday, 18 May 2020.

Torrent Power rose 2.38%. The company reported consolidated net loss of Rs 273.94 crore in Q4 March 2020 compared with net profit of Rs 24.80 crore in Q4 March 2019. The company has provided impairment loss of Rs 1,000 crore as exceptional item during the quarter towards carrying cost of DGEN plant (Dahej, Gujarat). Net sales rose 2% to Rs 2,983.50 crore in Q4 March 2020 over Q4 March 2019. EBITDA grew 15% to Rs 864 crore in Q4 March 2020 as compared to Rs 750 crore in Q4 March 2019.

Stocks in Spotlight:

Biocon gained 1.36%. The drug maker said that its subsidiary Biocon Biologics India has received the certificate of Good Manufacturing Practice (GMP) compliance from EMA for multiple Biologics Drug Substance (DS) and Drug Product (DP) manufacturing facilities at Biocon Park, Bengaluru. These facilities are used for the manufacture of DS and DP for Biosimilars: Bevacizumab, Trastuzumab, Pegfilgrastim and secondary packaging of Insulin Glargine for EU markets, and were inspected in March 2020, Biocon said.

KEC International gained 2.59% after the company secured new orders of Rs 1,203 crore across its various businesses. The firm has secured a transmission and distribution order of Rs 917 crore for T&D projects in India, Bangladesh, Africa and the Americas. The company's civil business secured orders of Rs 176 crore for industrial [civil works for Flue Gas Desulfurization (FGD) project] and residential projects in India. While cable business secured order of Rs 110 crore for various types of cables and cabling projects.

Lupin was down 2.36%. The drug major announced the launch of authorized generic version of Bausch Health's Apriso (mesalamine extended-release capsules 0.375 g) in the US. Mesalamine extended-release capsules 0.375g (authorized generic version) are indicated for the maintenance of remission of ulcerative colitis in patients 18 years of age and older. Mesalamine extended-release capsules 0.375 g, RLD: Apriso had an annual sales of approximately $290 million in the US (IQVIA MAT March 2020).

Global Markets:

European markets were trading lower amid profit booking after Monday's rally. Asian markets closed higher as hopes rise on a potential coronavirus vaccine after a positive development from a Moderna trial.

Moderna reported 'positive' phase one results for a potential coronavirus vaccine. The company said that after two doses all 45 trial participants had developed coronavirus antibodies.

Meanwhile, Chinese President Xi Jinping said Monday that his country will provide $2 billion over two years to help other countries combat the impact of the coronavirus pandemic.

US stocks rose sharply on Monday on optimism that the American economy might be percolating again, while the medical community works toward a potential COVID-19 vaccine.

Stock-market bulls also gained confidence following remarks by the U. S. central bank chief Powell on Sunday and Monday that the Fed would continue to support the economy and financial markets through the viral outbreak.

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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, May 19 2020. 15:33 IST