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End - Session

Detailed review of the post market session of the day.

Sensex falls 273 pts, Nifty ends below 15,750 amid negative global cues

27-Jul-21 17:05 Hrs IST

The key benchmark indices ended lower for the second consecutive session today, 27 July 2021, dragged by the weak global stocks. The Nifty closed just below the 15,750 level. Pharmaceutical, realty and auto stocks dropped while metals and PSU bank stocks rose.

The barometer index, the S&P BSE Sensex, fell 273.51 points or 0.52% to 52,578.27. The Nifty 50 index lost 78 points or 0.49% to 15,746.45.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 6.28% to 13.2325.

The broader market ended with losses as well. The BSE Mid-Cap index lost 0.67% and the BSE Small-Cap index fell 0.11%.

The market breadth was negative. On the BSE, 1590 shares rose and 1673 shares fell. A total of 111 shares were unchanged.

Earnings Impact:

Dr. Reddy's Laboratories slumped 10.44% after the drug company's consolidated net profit fell 1.47% to Rs 570.8 crore in Q1 FY22 from Rs 579.3 crore reported in Q1 FY21. Consolidated revenue from operations increased by 11.3% to Rs 4,919 crore in Q1 FY22 from Rs 4417.5 crore posted in Q1 FY21. Profit before tax dropped 16% year on year to Rs 742.5 crore in Q1 FY22 from Rs 878.9 crore registered in Q1 FY21. The drug company's research and development expenses rose by 14% year on year to Rs 4534 crore in Q1 FY22 as compared to Rs 3980 crore in Q1 FY21. EBITDA declined 12.34% to Rs 1018.8 crore in Q1 FY22 over Q1 FY21. EBITDA margin declined to 20.7% in Q1 FY22 from 26.3% in Q1 FY21 and 23.8% in Q4 FY21. Meanwhile, company's gross profit margin stood at 52.2% in Q1 FY21 as compared to 56% in Q1 FY21.

Axis Bank fell 3.23%. The private sector bank reported a 94.2% jump in standalone net profit to Rs 2,160 crore on a 2.4% rise in total income to Rs 19,591 crore in Q1 FY22 over Q1 FY21. The bank's net interest income (NII) grew 11% year on year (YoY) to Rs 7,760 crore from Rs 6,985 crore in Q1FY21. Net interest margin (NIM) for Q1 FY22 stood at 3.46%.

Larsen & Toubro (L&T) added 0.65%. The engineering and construction major's consolidated net profit soared 141.2% to Rs 1,556.18 crore on a 38% jump in revenue from operations to Rs 29,334.73 crore in Q1 June 2021 over Q1 June 2020. L&T bagged orders worth Rs 26,557 crore at the Group level during the quarter ended 30 June 2021, registering a growth of 13% over corresponding period of the previous year. The consolidated order book of the group was stood at Rs 3,23,721 crore as on 30 June 2021, with international orders at 20% of the total order book.

DLF gained 0.88%. The realty major posted a consolidated net profit of Rs 337 crore in Q1 FY22 as against a net loss of Rs 70.65 crore registered in Q1 FY21. Net sales jumped 107.7% to Rs 1,139.53 crore in Q1 FY22 from Rs 548.63 crore registered in Q1 FY21.

Glaxosmithkline Pharmaceuticals fell 3.13%. The pharmaceutical major's consolidated net profit grew 9.2% to Rs 121.08 crore on a 21.8% rise in net sales to Rs 789.99 crore in Q1 June 2021 (Q1 FY22) over Q1 June 2020 (Q1 FY21). Consolidated profit before tax rose 10.6% to Rs 164.90 crore in Q1 FY22 as against Rs 149.14 crore in Q1 FY21.

Vedanta slipped 2.23% to Rs 265.45. The company's consolidated net profit soared 247% to Rs 5,282 crore on a 79.2% jump in net sales to Rs 28,105 crore in Q1 June 2021 over Q1 June 2020. Revenue for Q1 FY2022 was higher by 79.2% Y-o-Y (year-on-year), primarily due to improved commodity prices and higher volumes across businesses. The revenues for Q1 FY2022 was at Rs 28,105 crore, higher by 1% Q-o-Q (quarter-on-quarter), primarily due to improved commodity prices, partially offset by lower sales volume at Zinc India, Iron Ore & Steel and Copper business.

Tata Motors skid 0.61%. The auto major's consolidated net loss contracted to Rs 4,450.92 crore in Q1 June 2021 as compared to a net loss of Rs 8,437.99 crore in Q1 June 2020. Total revenue from operations soared 107.63% to Rs 66,406.45 crore in Q1 FY22 from Rs 31,983.06 crore in Q1 FY21.

The Ramco Cements tumbled 5.6%. The cement maker's consolidated net profit soared 53.3% to Rs 170.02 crore on a 17.8% jump in net sales to Rs 1,205.08 crore in Q1 June 2021 (Q1 FY22) over Q1 June 2020 (Q1 FY21). Consolidated profit before tax surged 59.7% to Rs 251.53 crore in Q1 FY22 as against Rs 157.50 crore in Q1 FY21. The Q1 earnings was declared during trading hours today, 27 July 2021. Consolidated EBITDA grew 37% to Rs 371.77 crore in Q1 FY22 as compared to Rs 272.18 crore in Q1 FY21. Cement sales jumped 11% to 21.41 lakh tonnes during the quarter as against 19.37 lakh tonnes in Q1 June 2020, despite demand being impacted due to lock down in May and June 2021.

Canara Bank rose 1.47% to Rs 148.80. The public sector bank reported a 189% jump in standalone net profit to Rs 1177.47 crore on a 2.5% rise in total income to Rs 21,210.06 crore in Q1 FY22 over Q1 FY21. The PSU bank's operating profit before provisions and contingencies rose 34.19% to Rs 5750.66 crore in Q1 FY22 from Rs 4285.45 crore in Q1 FY21. The bank's net interest income (NII) rose marginally by 0.84% year on year (YoY) to Rs 6,147 crore from Rs 6,096 crore in Q1FY21. Provisions and Contingencies spiked nearly 18% to Rs 4574 crore in Q1 FY22 from Rs 3880 crore in Q1 FY21. Meanwhile, the bank's provision coverage ratio improved to 81.18% as of 30 June 2021 from 78.95% in 30 June 2020.

Global Markets:

European markets declined across the board on Tuesday as investors continued to monitor corporate earnings, along with extreme weather and the spread of COVID-19 across the continent.

Asian stocks ended mostly lower today as several major Chinese tech stocks in Hong Kong remained under pressure following a Monday tumble. Investors continued to assess the steep losses incurred in Chinese stocks sparked by Beijing's sweeping regulatory overhaul.

All three major US stock indexes eked out record closing highs for a second straight session on Monday as investors were optimistic heading into a slew of earnings from heavyweight technology and internet names this week, while caution ahead of a Federal Reserve policy meeting kept the market in check.

Investors will be watching the Federal Reserve's two-day policy meeting, beginning Tuesday. The Federal Open Market Committee and the Board of Governors are expected to issue a statement on the stance of monetary policy Wednesday. On Thursday, the Commerce Department will report second-quarter gross domestic product data.

Meanwhile, on the data front, sales of new U.S. single-family homes dropped unexpectedly in June, falling 6.6% to a seasonally adjusted annual rate of 6,76,000 units, the Commerce Department said on Monday.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 19,47,23,719 with 41,67,658 deaths. India reported 3,98,100 active cases of COVID-19 infection and 4,21,382 deaths while 3,06,21,469 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India on Tuesday reported 29,689 new cases, the number falling under 30,000 for the first time since 17 March 2021. The country's active caseload too has dropped, and now stands under 4 lakh. Even as the mass vaccination programme progresses, there are concerns about the private sector not administering enough doses. Despite being allotted 25% vaccines, private firms have vaccinated only 7% people so far.

Economy:

The second wave of COVID-19 may have a more lasting damage on the Indian economy and exports will once again be the foundation for recovery, Moody's Analytics said on Monday.

The Delta variant of COVID-19 is among factors now adversely affecting economies of the Asia-Pacific (APAC) region, but the economic hit from the current round of movement restrictions in the region will not be as severe as the recessions in the second quarter of last year. In India, where exports make up relatively small shares of the economy, high commodity prices have boosted the value of exports. This is one factor that helped reinvigorate India after its first devastating wave of COVID-19.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 6.178% as compared with 6.169% 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 74.47, compared with its close of 74.4225 during the previous trading session.

MCX Gold futures for 5 August 2021 settlement rose 0.05% to Rs 47,484.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.07% to 92.718.

In the commodities market, Brent crude for September 2021 settlement rose 30 cents at $74.8 a barrel. The contract rose 40 cents, or 0.54% to settle at $74.50 a barrel in the previous trading session.