Benchmark indices advanced for fifth trading session on Friday, following Reserve Bank of India (RBI)’s decision to keep repo rates unchanged. Global shares were positive on progress in vaccine distribution and expectations of a large stimulus by US President Joe Biden’s administration. The Nifty closed below the crucial 15,000 mark after scaling that level in intraday trade. Banks stocks extended gains while auto stocks corrected.
The Sensex added 117.34 points or 0.23% to 50,731.63. The Nifty 50 gained 28.60 points or 0.19% to 14,924.25. Both the indices attained record closing high levels. The indices have surged about 9.5% in five consecutive sessions.
The Sensex hit record high of 51,073.27 while the Nifty hit record high of 15,014.65 in early trade.
The broader market witnessed profit booking. The S&P BSE Mid-Cap index fell 0.93% while the S&P BSE Small-Cap index was down 0.28%.
Buyers outnumbered sellers. On the BSE, 1,325 shares rose and 1,651 shares fell. A total of 152 shares were unchanged.
Total COVID-19 confirmed cases worldwide stood at 104,838,939 with 2,281,731 deaths. India reported 151,460 active cases of COVID-19 infection and 154,823 deaths while 104,96,308 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
RBI Policy Outcome:
The meeting of the six-member Monetary Policy Committee headed by RBI Governor Shaktikanta Das concluded this morning. The committee has kept the interest rates unchanged, maintaining repo rate at 4% and the reverse repo rate at 3.35%.
The MPC decided to continue with an accommodative stance of monetary policy as long as necessary, at least through the current financial year and into next year to revive growth on a durable basis and mitigate the impact of Covid-19, Das said.
Inflation has been better than what was expected in December meeting and eased below tolerance level of 6%. The RBI projected GDP growth of 10.5% in FY22 for India while projection for CPI-based inflation was revised to 5.2% for Q4FY21.
The RBI had last revised its policy rate on 22 May 2020 to perk up demand by cutting interest rate to a historic low. The latest Economic Survey said that there are expectations of a rebound of the economy with a 11% growth in the next fiscal.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee appreciated to 72.93 compared with its previous closing of 72.96.
The yield on 10-year benchmark federal paper rose to 6.112% from its previous closing of 6.074%.
MCX Gold futures for 5 April 2021 settlement rose 0.94% to Rs 47,152.
The US Dollar index (DXY), which tracks the greenback’s value against a basket of currencies, fell 0.13% to 91.41.
In the commodities market, Brent crude for April 2021 settlement added 65 cents to $59.45 a barrel. The contract surged 0.65% to settle at $58.84 in the previous trading session.
Shares in Europe and Asia rose on Friday. Investors look to vaccine rollouts for hopes of normalization following the COVID-19 pandemic. The EU’s drug regulator said on Thursday that it was assessing data on therapeutic antibody treatments for some outpatients from U.S. drug makers, Regeneron and Eli Lilly.
U.S. stocks jumped on Thursday, extending the rally into a fourth straight day as investors assessed a new batch of corporate earnings and solid economic data. The S&P 500 and Nasdaq posted record closing highs.
On the stimulus front, Democrats are moving forward with President Joe Biden’s $1.9 trillion COVID-19 relief proposal. Republicans have countered with a more modest $618 billion package, which includes new stimulus checks of $1,000 per person.
Buzzing Indian Segment:
The Nifty Auto index fell 1.32% to 10,723.95. The index jumped 10.74% in the past four trading sessions.
TVS Motor Co (down 3.89%), Tata Motors (down 2.36%), Ashok Leyland (down 2.06%), Maruti Suzuki India (down 1.83%) and Eicher Motors (down 1.02%) declined.
Hero MotoCorp fell 0.36%. On a standalone basis, the company sold 18.45 lakh units in Q3 FY21, a growth of 19.7% Y-o-Y (year-on-year). Profit After Tax (PAT) grew 23.2% to Rs 1,084 crore and net revenue from operations rose 39.7% to Rs 9,776 crore in Q3 FY21 over Q3 FY20. Earnings Before Interest, Tax, Depreciation, & Amortization (EBITDA) for the quarter stood at Rs 1,414 crore, reflecting 14.5% EBITDA margin and a growth of 36.1%.
The result was boosted by the robust sales volume during the quarter and a combination of key strategic initiatives such as cost reduction efforts to partially offset the impact of the commodity costs and intense operational efficiencies, the company said.
Mahindra & Mahindra (M&M) fell 0.10%. M&M reported 40% jump in net profit to Rs 530.86 crore on a 16% rise in revenues to Rs 14,056.54 crore in Q3 FY21 over Q3 FY20. The results include the combined earnings of M&M and Mahindra Vehicle Manufacturers (MVML), which is a manufacturing unit of M&M.
M&M sold 1,15,272 vehicles in the domestic market in Q3 FY21, down 7% over Q3 FY20. The automaker’s tractor sales improved by 20% YoY to 97,420 units in the third quarter on the back of a robust rural story. M&M expects strong demand to continue.
Trent rose 2.67% after the company’s consolidated net profit jumped 30.2% to Rs 64.03 crore on a 13.6% rise in net sales at Rs 853.63 crore in Q3 December 2020 over Q3 December 2019. Profit before tax (PBT) fell 4.5% to Rs 89.70 crore in Q3 December 2020 as against Rs 93.89 crore in Q3 December 2019.
Godrej Agrovet fell 4.46%. On a consolidated basis, the company’s net profit jumped 33.1% to Rs 68.09 crore on 14.4% decline in net sales at Rs 1,523.44 crore in Q3 December 2020 over Q3 December 2019. Profit before tax (PBT) soared 32.6% to Rs 90.11 crore in Q3 December 2020 as against Rs 67.98 crore in Q3 December 2019.
Cadila Healthcare fell 0.78%. The drug company reported a 41% rise in consolidated net profit to Rs 527.2 crore on a 6.2% rise in net sales to Rs 3,753.70 crore in Q3 FY21 over Q3 FY20. EBIDTA during the quarter improved by 16% year-on-year (YoY) to Rs 807 crore.
Tata Power fell 2.51%. On a consolidated basis, the power utility company reported 28.4% rise in net profit to Rs 248.21 crore on 7.5% increase in net sales to Rs 7597.91 crore in Q3 FY21 over Q3 FY20. The company’s improved profitability was mainly due to better performance in Mundra, steady operational performance across all businesses and interest cost savings on account of debt reduction.
Gillette India fell 2.41%. The company’s standalone net profit jumped 15.2% to Rs 81.90 crore on a 13.3% increase in net sales at Rs 520.42 crore in Q2 December 2020 over Q2 December 2019. The firm delivered strong sales on account of its superior strategy, robust product portfolio, strong retail execution and market recovery. Profit after Tax (PAT) grew due to its focus on productivity and savings.
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