The key equity indices continued to trade with significant losses in morning trade. A rise in the volatility index (VIX) worried investors. Rising coronavirus cases and uneven distribution of vaccine rollouts also triggered selling pressure. At 10:22 IST, the barometer index, the S&P BSE Sensex, was down 372.55 points or 0.79% to 47,037.38. The Nifty 50 index lost 111.55 points or 0.80% to 13,855.95. HDFC Bank (down 2.82%), Kotak Mahindra Bank (down 2.79%), HDFC (down 1.45%) and Infosys (down 1.29%) led the losses. Fed Chairman Jerome Powell said that the U.S. economy was a long way from full recovery and still short of policy makers' inflation and job goals. The central banker made it clear that the U.S. central bank was nowhere near exiting massive support for the economy during the ongoing coronavirus pandemic, as officials left their benchmark interest rate unchanged near zero. In the broader market, the S&P BSE Mid-Cap index rose 0.04% while the S&P BSE Small-Cap index added 0.05%. The market breadth was weak. On the BSE, 1265 shares rose and 1108 shares fell. A total of 120 shares were unchanged. Trading could be volatile as traders roll over positions in the F&O segment from the near month January series to February series. The January 2021 F&O contracts will expire today, 28 January 2021. COVID-19 Update: Total COVID-19 confirmed cases worldwide stood at 100,850,283 with 2,173,938 deaths. India reported 173,740 active cases of COVID-19 infection and 153,847 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. A total of 23,28,779 beneficiaries have so far been vaccinated for COVID-19 through 41,599 sessions held till the evening of January 27, the twelfth day of the immunisation drive, according to a provisional report of the Union Health Ministry. Results Today: Maruti Suzuki India was down 0.44% ahead of Q3 earnings today. Aarti Industries (up 1.27%), AU Small Finance Bank (up 1.10%), Bharat Electronics (up 0.38%), Blue Dart (down 1.63%), Coforge (down 1.91%), Colgate-Palmolive (up 0.47%), Cummins India (up 1.08%), IDBI Bank (up 1.62%), InterGlobe Aviation (up 1.72%), Indus Towers (down 0.06%), IRCTC (up 2.93%), Laurus Labs (down 1.34%), Lupin (down 0.75%), M&M Financial (up 0.61%) will also announced quarterly earnings today. Earnings impact: Hindustan Unilever (HUL) fell 2.46% to Rs 2332. HUL reported an 18.8% rise in net profit to Rs 1921 crore on a 21% rise in revenue from operations to Rs 11,862 crore in Q3 FY21 over Q3 FY20. HUL said that the growth during the quarter was competitive and profitable with reported turnover growth of 20% and profit after tax growth of 19%. Domestic consumer growth (excluding the impact of merger of GSK CH and acquisition of 'VWash') grew at 7%. Higher mobility, consumer relevant innovations and investments behind market development are driving business momentum. HUL said its business fundamentals remained strong with 86% of its business gaining penetration. Health, hygiene and nutrition forming 80% of the portfolio continue to grow in double digits and the company has seen significant improvement in discretionary categories. Foods & refreshment sustained the high growth momentum growing at 19%. Beauty & personal care grew 9% with robust performance across categories and strong double-digit growths in skin cleansing, hair care and oral care. Household care continued its strong performance across segments delivering double-digit growth. On a consolidated basis, the FMCG major's net profit rose 18.8% to Rs 1938 crore on 20.57% rise in revenue from operations to Rs 12,181 crore in Q3 FY21 over Q3 FY20. Axis Bank rose 1.38% to Rs 640. The private lender's net profit tanked 36.45% to Rs 1116.60 crore while total income fell 1.13% at Rs 19,274.39 crore in Q3 December 2020 over Q3 December 2019. PAT was adversely impacted by about Rs 1,050 crore on account of prudent expense and provisioning charges in Q3. The bank's provisions and contingencies jumped 32.65% to Rs 4,604.28 crore in Q3 FY21 over Rs 3,470.92 crore in Q3 FY20. The bank holds cumulative provisions (standard+additional other than NPA) of Rs 11,856 crore at the end of Q3FY21. This is over and above the NPA provisioning included in PCR calculations. These cumulative provisions translate to standard asset coverage of 2.08% as on 31st December 2020. The bank's operating profit for the quarter grew 6% YoY to Rs 6,096 crore. While the lender's net interest income (NII) grew 14% to Rs 7,373 crore, net interest margin (NIM) improved by 2 bps to 3.59% in Q3 FY21 over Q3 FY20. The ratio of gross NPAs to gross advances stood at 3.44% as on 31 December 2020 as against 4.18% as on 30 September 2020 and 5% as on 31 December 2019. The ratio of net NPAs to net advances stood at 0.74% as on 31 December 2020 as against 0.98% as on 30 September 2020 and 2.09% as on 31 December 2019. If the bank had classified such borrower accounts as NPA after 31 August 2020, the bank's Gross NPA Ratio and Net NPA ratio would have been 4.55% and 1.19% respectively. Powered by Capital Market - Live News |