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End Session Commentary

Sensex jumps 222 pts, Nifty ends above 15,850; Asian Paint climbs over 3%

(16:46, 15 Jun 2021)

The domestic equity benchmarks ended with decent gains on Tuesday. The Nifty closed above the 15,850 mark. Private banks and FMCG and media stocks advanced while pharma and PSU banks corrected.

The barometer index, the S&P BSE Sensex, rose 221.52 points or 0.42% to 52,773.05. The Nifty 50 index added 57.40 points or 0.36% to 15,869.25. Both the indices attained record closing high levels.

The Sensex hit a record high of 52,869.51 and the Nifty hit a record high of 15,901.60 in morning trade today.

Asian Paints (3.18%), Axis Bank (1.97%), ICICI Bank (up 1.57%), Hindustan Unilever (up 1.11%) and HDFC Bank (up 0.72%) were major index movers.

The broader market outperformed the Sensex. The BSE Mid-Cap index rose 0.60% and the BSE Small-Cap index added 0.44%.

Buyers outpaced sellers. On the BSE, 1,943 shares rose and 1,280 shares fell. A total of 145 shares were unchanged.

Investors sentiment was upbeat after biotech firm Novavax said Monday its COVID-19 vaccine was shown to be safe and 90.4% effective overall in a phase three clinical trial. Novavax has tied up with the Serum Institute of India (SII) to manufacture its COVID-19 vaccine, namely Covovax. The Government of India has already factored in 20 crore Covovax doses in the larger pool of 2 billion it expects to make available for the national inoculation drive between August and December.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 17,62,73,244 with 38,12,377 deaths. India reported 9,13,378 active cases of COVID-19 infection and 3,77,031 deaths while 2,82,80,472 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India on Tuesday reported 60,471 new cases, lowest after 75 days, as per health ministry's updated data.

Economy:

Consumer Price Index-based inflation (CPI) for the month of May 2021 came in at 6.30%, higher than April 2021's 4.23%. The higher inflation month-on-month was primarily on the back of a substantial hardening of food prices.

Meanwhile, as per Moody's Investors Service, India's and Brazil's Q1 2021 real GDP data has shown a strong rebound in both economies following a contraction last year of 4.4% in Brazil and 7.1% in India. Brazil's first-quarter GDP expanded 1.2% from the previous quarter and 2.3% from first-quarter 2020. India's first-quarter GDP rose 1.5% quarter-on-quarter and year-on-year.

Therefore, in the first quarter of this year, Brazil's GDP reached while India's GDP surpassed their pre COVID-19 fourth-quarter 2019 levels, the organisation highlighted in its latest credit outlook report.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 6.041% as compared with 6.004% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 73.3175, compared with its close of 73.29 during the previous trading session.

MCX Gold futures for 5 August 2021 settlement rose 0.23% to Rs 48,635.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was flat at 90.52.

In the commodities market, Brent crude for August 2021 settlement rose 50 cents at $73.36 a barrel. The contract rose 17 cents, or 0.23% to settle at $72.86 a barrel in the previous trading session.

Foreign Markets:

European shares rose across the board while most Asian stocks advanced on Tuesday, 15 June 2021. Investors looked forward to a much-anticipated Federal Reserve policy meeting to see if the U.S. Central Bank would signal any change to the U.S. monetary policy outlook.

The U.S. markets closed at a record on Monday. The Nasdaq Composite jumped to a record high on Monday as investors rotated back into growth-oriented stocks ahead of a key Federal Reserve meeting.

The Nasdaq Composite gained 0.74% to an all-time closing high of 14,174.14. The S&P 500 also cruised to another record close, rising 0.18% to 4,255.15. The Dow Jones Industrial Average lagged, dipping 85.85 points to 34,393.75.

The Fed's two-day policy meeting will likely dominate investor behavior this week. Although the central bank is not expected to take any action, its forecasts for interest rates, inflation and the economy could move the markets. Fed Chairman Jerome Powell will speak to the press after the central bank issues its statement Wednesday.

Stocks in Spotlight:

Infosys rose 0.78% to Rs 1472.85. The IT major will report its Q1 June 2021 results on Wednesday, 14 July 2021.

Larsen & Toubro Infotech (LTI) shed 0.80%. The company said that it has entered into a strategic collaboration agreement with Amazon Web Services (AWS). LTI had recently launched a dedicated cloud unit for AWS which will focus on migration and modernization, SAP application workloads, data analytics and Internet of things (IoT), complemented by LTI's advisory, professional services, and delivery capabilities. In addition, LTI said it will build state-of-theart accelerators and create industry-focused cloud offerings for the Banking and Financial Services, Manufacturing, Retail & CPG, Media & Entertainment, Hi-Tech, and Insurance sectors.

Coal India fell 1.38%. On a consolidated basis, the state-run coal major's net profit slipped 0.79% to Rs 4,588.96 crore on 4.24% decrease in sales to Rs 24,510.80 crore in Q4 March 2021 over Q4 March 2020.

Consolidated coal production (raw coal) fell 4.81% to 203.42 million tonnes (MT) in Q4 FY21 as against 213.71 million tonnes (MT) in Q4 FY20. Offtake (raw coal) rose 0.34% to 164.89 MT in Q4 FY21 as against 164.33 MT in Q4 FY20. The company sold 165.19 MT of coal worth Rs 24,510.80 crore in Q4 March 2021. The average realization stood at Rs 1,483.79 per tonne.

Whirlpool of India jumped 7.22%. The company reported 40.85% jump in net profit to Rs 130.06 crore on a 31.45% rise in revenue from operations to Rs 1,779.39 crore in Q4 FY21 over Q4 FY20.

Power Finance Corporation fell 1.35%. The company reported a sharply higher consolidated net profit of Rs 3,906 crore in Q4 FY21 as compared to Rs 693.71 crore posted in Q4 FY20. Revenue from operations increased by 12% to Rs 18,148.72 crore in Q4 FY21.

Easy Trip Planners added 0.67%. The company's consolidated net profit surged to Rs 30.46 crore in Q4 FY21 as against Rs 3.38 crore in Q4 FY20. Revenue from operations climbed 82.05% year-on-year (YoY) to Rs 57.44 crore.

The revenue from Air Passage segment stood at Rs 55.41 crore (up 57.68% YoY) while that from Other services segment was at Rs 0.59 crore (up 18% YoY) in the fourth quarter. The company's revenue from Hotel Packages segment stood Rs 1.43 crore in Q4 FY21 compared with revenue loss of Rs 4.10 crore in Q4 FY20.

Greenply Industries slipped 1.89%. On a consolidated basis, the company reported a net profit of Rs 28.64 crore in Q4 FY21 compared with net loss of Rs 21.50 crore in Q4 FY20. Net sales jumped 15.1% YoY to Rs 396.70 crore in Q4 FY21.