Sensex, Nifty Close Lower For Third Day; Maruti Misses Q1 Estimates On Covid Woes
India’s stock benchmarks fell for a third straight day as companies continued to report lacklustre earnings performance for the June quarter, mainly hit by the impact of the deadly wave of Covid-19 cases in the country.
The S&P BSE Sensex shed 0.26% to 52,443.71 and NSE Nifty 50 Index fell by a similar magnitude to 15,709.40. HDFC Bank Ltd. contributed the most to the index decline, decreasing 1.6%. Kotak Mahindra Bank Ltd. had the largest drop, falling 2.7%.
While the S&P BSE MidCap index remained unchanged, the S&P BSE SmallCap underperformed the larger peers, declining 0.45% .
Fourteen of the 19 sectoral indices compiled by the BSE Ltd. fell, led by S&P BSE Auto index's 1% drop. On the flipside, S&P BSE Telecom gained nearly 4.5%, making it the best performer followed by the S&P BSE Metal's 1.4% jump.
The market breadth was skewed in favour of bears. About 1,439 stocks advanced, 1,765 declined and 129 remained unchanged on the BSE
Maruti Suzuki Misses Q1 Estimates On Covid Woes
Maruti Suzuki reported net income for the first quarter that missed the average analyst estimate.
Net income Rs 441 crore vs. estimate Rs 879 crore
Revenue Rs 17,770 crore vs. estimate Rs 18,170 crore
Total costs Rs 17,720 crore vs. Rs 5,770 crore YoY
Raw material costs Rs 8,540 crore vs. Rs 1,330 crore YoY
COMMENTARY AND CONTEXT
Covid’s second wave adversely impacted 1Q production and sales
Q1 profit primarily impacted due to lower sale volumes
“Commodity prices increased steeply but the company continued to make efforts to reduce costs,” Maruti says
Osamu Suzuki to have title of “Honorary Chairman”
SRF Gains Nearly 6% On Earnings Beat
Shares of SRF Ltd gained 5.92% to Rs 8,114.05 apiece as net income in the June quarter beat average analyst estimates.
Net income up 3.8% at Rs 395.28 crore vs estimate of Rs 346 crore
Revenue from operations Rs 2,699.40 crore vs estimate of Rs 2,472 crore
Total costs up 3.28% to Rs 2,178.27 crore
Other income up 6.33% to Rs 13.78 crore
Managing Director of SRF Ashish Bharat Ram said that the second wave of Covid infections had an adverse impact on certain raw material prices and disrupted demand and supply chains in some business segments. However, he expects Covid-19 would not have any material impact on its liquidity or ability to service its debt or other obligations.
Out of the 25 analysts tracking the company, 17 maintained ‘buy’, 4 maintained ‘hold’ and 4 analysts maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg hints at a downside of 7.8%. .
Pfizer Q1 Net Income Beats Estimates
Pfizer Ltd reported net income for the first quarter that beat the average analyst estimate.
Net income Rs 200 crore vs estimate Rs 150 crore
Revenue Rs 749 crore vs estimate Rs 683 crore
Total costs Rs 493 crore
Market Check: Sensex, Nifty Extend Decline; Europe Mostly Gains
India's stock benchmarks edged lower as investors asessed a slew of disappointing quarterly earnings.
The S&P BSE Sensex shed 0.68% to 52,219.34, and NSE Nifty 50 Index posted losses of similar magnitude to 15,644.80.
The S&P BSE MidCap outperformed the larger peers as it declined by 0.25% while the S&P BSE SmallCap almost mirrored the larger peers and shed 0.64% .
Sixteen of the 19 sectoral indices posted losses with S&P BSE Bankex declining by 1.51% while S&P BSE Telecom gained nearly 4%.
The market breadth was skewed in favour of bears. About 1,163 stocks advanced, 1,939 declined and 113 remained unchanged on the BSE.