Indian markets were volatile throughout the week as the first weekly decline was posted in six weeks. The decline was due to the facts like profit booking and the rise of COVID-19 cases. The week that ended on Friday, July 31, saw NIFTY ending above 11,000 levels.
The Sensex dropped 552.01 points or 1.37% and settled at 37,606.89. The NIFTY 50 index also came down 120.70 points or 1.08% to end at 11,073.45 points.
BSE Mid-Cap and Small-Cap index both rose 0.41% and 0.43% respectively. BSE Mid-Cap saw a hike of 56.56 to get at 13,759.11 whereas the BSE Small-Cap saw a rise of 55.21 points and ended at 13,021.76.
The S&P BSE Sensex fell down 194.17 points or 0.51% to land on 37,934.73. Nifty 50 index fell 62.35 points or 0.56% at 11,131.80. The bad-loan ratio is set to worsen to 12.5%, RBI warned in a report it published.
The barometer index, S&P BSE Sensex gained 558.22 points or 1.47% at 38,492.95. The Nifty 50 also went up by 168.75 points or 1.52% to settle at 11,300.55.
There were steep losses on Wednesday. The S&P BSE Sensex fell down 421.82 points or 1.10% to 38,071.13. Nifty 50 lost 97.70 points or 0.86% and ended up at 11,202.85.
Negative global cues had a minor impact on the market. This, in turn, affected the sentiments of the investors. On 30th July 2020 F&O contracts expired. S&P index came down by 335.06 points or 0.88% to end at 37,736.07. On the other hand, Nifty 50 lost 100.70 points or 0.90%, to settle momentarily at 11,102.15.
Both BSE and Nifty 50 came across minor losses, on 31st July 2020. The S&P BSE Sensex found a lost 129.18 points or 0.34% and settled at 37,606.89. Nifty 50 also came across a loss of 28.70 points or 0.26% to end at 11,073.45.
Indian Markets Weekly highlights:
ICICI Bank lost 9.15%. The bank also reported a 36.2% gain in net profit and a 21.8% hike in total income that takes it to Rs. 26, 069.95 crore in Q1 June 2020 over Q1 June 2019. Equity shares of 3.96% in ICICI Lombard General Insurance Company and 1.50% in ICICI Prudential Life Insurance Company was sold, that helped the net profit to grow. In Q1 June 2019, provisions and contingencies were at Rs. 3,495.73 crores which went up 117% to Rs. 7,593.05 crore in Q1 June of this year. The private sector bank also made Rs. 5,550 crore COVID-19 related provisions.
Kotak Mahindra‘s net profit dropped 8.50% to Rs 1,244.45 crore and total income decreased 3.26% to Rs. 7,685.40 crores in Q1 June 2020. NII for FY21 Q1 increased to Rs. 3,724 crore, a growth of 17.8% Y-o-Y. The bank also recorded Net Interest Margin or NIM of 4.4%.
HDFC bank’s managed Aditya Puri sold 95% of the bank’s shareholding. The bank that is valued Rs. 843 crore lost 7.70%. According to data from various stock exchanges, 7420033 stocks of the bank were sold between the 21st and 24th of July. Aditya Puri, who has been the managing director and also chief executive of the bank since 1994 and held 77.96 lakh shares or 0.14% of bank’s equity capital, will see his term end on 20 October 2020.
The FMCG major, ITC recorded a drop of 26.19% in net profit to Rs. 2342.76 crores in Q1 This year over last year. ITC commented that due to COVID-19 and things coming to a standstill, it’s hotel segment was affected severely. It also reported a 17.4% decline in net sales.
Zee Entertainment Enterprise‘s (ZEEL) net loss was at Rs. 765.82 crores in Q4 March 2020. Net sales fell 3.4% to Rs 1951.08 crores. (Rs 2019.27 crore in Q4 March 2019)
Reliance Industries reported a hike in net profit to Rs. 13,248 crore in Q1 June 2020 compared to last year. Total income was down by 42.11% Y-o-Y. Fall in O2C caused the decline of revenue.
State Bank of India‘s net profit went up by 81.2% to Rs. 4189.34 crore. The bank’s total income rose by 5.4%. The bank lost 0.23%.
Bharti Airtel and TVS Motor company both fell by 0.88% and 2.57% respectively. The telecom company reported a loss of Rs. 15,933 crores in June quarter. The total revenue for the company increased by 15.4% Y-o-Y. For TVS motor company, the company faced a net loss of Rs. 182.79 crores in June 2020 Q1 against the same period last year.
Maruti Suzuki India in the same time got ahead by 4.11%. The company reported a net loss of Rs. 249.40 crore in Q1 June 2020. The company reported a major cut back in sales due to COVID-19 related disruptions. Net sales of the company came down by 80.4% in Q1 June 2020 and Sales volume declined by 81%.
Sun Pharmaceuticals got up by 9.55%. They reported that their subsidiary of its American Arm will acquire Canada’s Aquinox Pharmaceuticals, which carries out “business of research and development of pharmaceutical products for their commercialization”, for $8.2 million in cash.
With Thierry Bollore been appointed as the chief executive officer of Jaguar Land Rover, Tata Motors rose by 0.92%.
Jet Airways gained 5% after they acquired six Boeing aircraft.
With reporting a net profit of Rs. 341.8 crore, Dabur India‘s stock gained over 4%. They also reported a Y-o-Y decline of 5.9% due to COVID-19.
The stock price of Torrent Pharmaceutical rose by 10% after they reported a 48.61 percent rise in its consolidated net profit to Rs 321 crore for the quarter ended June 30, 2020. The rise was due to the robust sales in the Indian market.
SEBI, on July 27th, amidst the COVID-19 pandemic extended its relaxation in procedural requirements for listed entities with respect to open and buyback offers till 31 December 2020. They also provided a relaxation of one month to the listed companies for their submission of June quarter results. The relaxation is provided until 15 September 2020.
China’s National Bureau of Statistics claims that China’s industrial profits went up by 11.5% year on year.
Bank of Japan also reported that the country’s economy is expected to “pick up moderately” in the second half of the year. A report on Japan’s factory output shows that it has increased by 2.7% in June from last month. Japan’s retail sales, comparing it to last year, for June declined by 1.2% as reported by the Ministry of Economy, Trade, and Industry.
In a policymaking meeting, the Fed admitted that the US economy has come back from the levels of March and April. In those months, nearly all states had shut down nonessential businesses due to the COVID-19 pandemic. US GDP declined at a 32.9% annualized rate during the second quarter. This is the sharpest decline in the US economy since the Second World War. With sudden decline in the markets, 1.43 Million Americans filed for unemployment benefits last week.