Domestic equity indices tumbled on Tuesday, tracking weak cues from other Asian stock markets. The Nifty managed to close above the 15,600 mark after hitting the day's low of 15,578.55 in early afternoon trade. Barring the Nifty FMCG index, all the sectoral indices on the NSE ended in the red. Asian stocks fell across the board amid mounting concerns about the rapidly surging delta variant of the COVID-19 in several countries.

The barometer index, the S&P BSE Sensex, dropped 354.89 points or 0.68% at 52,198.51. The Nifty 50 index slipped 120.30 points or 0.76% at 15,632.10.

ICICI Bank (down 2.14%), HDFC Bank (down 1.9%) and HDFC (down 0.96%) were major drags.

Selling was broad based. The BSE Mid-Cap index fell 1.28% and the BSE Small-Cap index lost 1.44%.

The market breadth was weak. On the BSE, 1137 shares rose and 2098 shares fell. A total of 108 shares were unchanged.

The domestic equity market will remain shut on Wednesday, 21 July 2021, on account of Bakri Id.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 19,09,23,535 with 40,96,272 deaths. India reported 4,06,130 active cases of COVID-19 infection and 4,14,482 deaths while 3,03,53,710 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

In the past 24 hours, India recorded 30,093 new cases in the last 24 hours - the lowest in 125 days, as per Health Ministry's recent data.

Numbers to Watch:

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 74.6125, compared with its close of 74.88 during the previous trading session.

MCX Gold futures for 5 August 2021 settlement fell 0.03% to Rs 48,081.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.01% to 92.90.

In the commodities market, Brent crude for September 2021 settlement rose 15 cents at $68.77 a barrel. The contract fell $4.97, or 6.75% to settle at $68.62 a barrel in the previous trading session.

Foreign Markets:

Most European shares were trading higher while Asian shares declined on Tuesday, following an overnight tumble for stocks on Wall Street and concerns about the spread of the delta coronavirus variant.

On Tuesday, China kept unchanged its benchmark lending rate for corporate and household loans - the one-year Loan Prime Rate (LPR) held steady at 3.85% while the five-year LPR was also left at 4.65%.

Geopolitical jitters also resurfaced on Monday after the U.S., the U.K. and their allies said the Chinese government has been the mastermind behind a series of malicious ransomware, data theft and cyber-espionage attacks against public and private entities - including the sprawling Microsoft Exchange hack earlier this year.

U.S. stocks dropped sharply on Monday on concern a rebound in COVID-19 cases would slow global economic growth. COVID-19 cases have rebounded in the U.S. this month, with the delta variant spreading among the unvaccinated. Cases were already flaring up around the world because of the delta variant.

Buzzing Indian Segment:

The Nifty FMCG index rose 0.14% to 36,230.25. The index fell 0.20% in the previous session.

Hindustan Unilever (up 0.97%), Marico (up 0.94%), Nestle India (up 0.61%), Varun Beverages (up 0.48%), Godrej Consumer Products (up 0.42%) and Colgate Palmolive (India) (up 0.09%) advanced.

Earnings Impact:

Bajaj Finance fell 1.24%. The NBFC major reported 4% rise in consolidated net profit to Rs 1,002 crore on 1% increase in total income to Rs 6,743 crore in Q1 FY22 over Q1 FY21.

Net Interest Income (NII) for Q1 FY22 increased by 8% to Rs 4,489 crore as against Rs 4,152 crore in Q1 FY21. Interest income reversal for the quarter was Rs 451 crore as compared to Rs 306 crore in Q1 FY21, up 47.4% YoY.

Total operating expenses to net interest income for Q1 FY22 was 30.6% as against 27.9% in Q1 FY21. During the quarter, the company took several actions to reduce its operating expenses to partially mitigate the financial impact caused by the second wave.

Loan losses and provisions for Q1 FY22 was Rs 1,750 crore as against Rs 1,686 crore in Q1 FY21. During the quarter, the company has done accelerated write offs of Rs 113 crore of principal outstanding on account of COVID-19 related stress. The company holds a management overlay and macro provision of Rs 483 crore as of 30 June 2021.

Assets under management (AUM) grew by 15% to Rs 159,057 crore (including IPO financing receivables of Rs 2,942 crore) as of 30 June 2021 from Rs 138,055 crore as of 30 June 2020. Core AUM growth in Q1 FY22 was approximately Rs 4,100 crore.

Asian Paints surged 6.04% after the company's net profit increased 160.2% to Rs 568.50 crore in Q1 FY22 as against Rs 218.45 crore in Q1 FY21. Revenue from operations during the quarter has increased by 91.1% to Rs 5,585.36 crore compared with Rs 2,922.66 crore recorded in the same period last year. As compared to Q4 FY21, the company's net profit and revenues have declined by 33.3% and 16%, respectively. Profit before depreciation, interest, tax and other income (PBDIT) for the group (before share in profit of associates) increased by 88.7% to Rs 913.56 crore in Q1 FY22 from Rs 484.25 crore in Q1 FY21.

HCL Technologies skid 2.29%. On a consolidated basis, the IT firm's net profit jumped 8.5% to Rs 3,214 crore on 2.2% increase in revenues to Rs 20,068 crore in Q1 FY22 over Q4 FY21. On a year-on-year (Y-o-Y) basis, the company's consolidated net profit surged 9.9% while revenue from operations soared 12.5% in Q1 FY22 over Q1 FY21. EBITDA stood at Rs 4,908 crore in Q1 FY22, falling 3.7% over Q4 FY21 and rising 7.5% over Q1 FY21. During the quarter ended June 2021, EBITDA margin stood at 24.5% while EBIT margin was at 19.6%. In dollar terms, revenue stood at $2,720 million, up 0.9% Q-o-Q and up 15.5% Y-o-Y. Revenue in constant currency terms rose 0.7% Q-o-Q and up 11.7% Y-o-Y. In its guidance, the company said its revenue is expected to grow in double digits in constant currency for FY22. EBIT margin is expected to be between 19.0% and 21.0% for FY22.

Mastek gained 0.27%. The company's consolidated net profit rose 6% to Rs 80.20 crore on 6.9% increase in total revenue from operations to Rs 516.50 crore in Q1 June 2021 (Q1 FY22) over Q4 March 2021 (Q4 FY21). Consolidated total EBITDA grew 7.6% to Rs 117.50 crore in Q1 FY22 as against Rs 109.20 crore in Q4 FY21. EBITDA margin improved to 22.5% during the quarter compared with 22.4% during Q4 March 2021. In constant currency, revenue from operations rose 4.3% Q-o-Q (quarter-on-quarter) and 27.2% Y-o-Y (year-on-year) to $70.2 million in Q1 FY22. Mastek added 40 new clients in Q1 FY22. The total client count as of 30 June 2021 stood at 651 (LTM) as compared to 639 (LTM) in Q4 FY21.

Newgen Software Technologies hit a lower circuit of 5% at Rs 662.60 after the company's' consolidated net profit declined 59% to Rs 216 crore on 20.2% decline in revenue from operations to Rs 1,595 crore in Q1 FY22 over Q4 FY21. Annuity revenues (ATS/AMC, Support, and SaaS) were at Rs 104.8 crore (up 2.9% QoQ) while subscription revenues (ATS/AMC and SaaS) were at Rs 53.7 crore (up 2.7% QoQ) in Q1 FY21. Revenue from sale of products/license were at Rs 27.9 crore (down 40.6% QoQ) in the first quarter. Implementation & digitization revenues were at Rs 26.8 crore (down 47.7% QoQ) in Q1 FY21. EBITDA declined by 65.7% to Rs 228 crore in Q1 FY22 from Rs 664 crore in Q4 FY21.

Nippon Life India Asset Management rose 2.18% after the company's consolidated net profit increased 16.1% to Rs 181.54 crore on 9.8% rise in total income to Rs 369.18 crore in Q1 FY22 over Q1 FY21. Nippon Life India Asset Management is an asset manager of Nippon India Mutual Fund (NIMF). For the quarter ended 30 June 2021, NIMF's overall AUM market share rose to 7.25%, an increase of 13 bps as against the quarter ended 31 March 2021. The company's overall AUM market share was 7.3% in the Q1 quarter last year.

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