Sensex, Nifty Snap Two Week Winning Streak As Worries Mount Over Covid
A trader monitors financial data on computer screens at ETX Capital, a broker of contracts-for-difference, in this arranged photograph in London. Photographer: Chris Ratcliffe/Bloomberg

Sensex, Nifty Snap Two Week Winning Streak As Worries Mount Over Covid

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India equity benchmarks snapped two weeks of gains as coronavirus cases continue to surge, triggering concerns that a national lockdown may be reimposed.

The S&P BSE Sensex ended little changed at 48,732.55 while the NSE Nifty 50 Index lost 0.13% to 14,677.80. Both the indices closed the week lower by nearly 1%

Sensex, Nifty Snap Two Week Winning Streak As Worries Mount Over Covid

Sixteen of the 19 sector sub-indexes compiled by BSE Ltd. declined, led by a gauge of real estate companies. On the flip side, the S&P BSE Fast Moving Consumer Goods advanced 2%, making it the index's best performance since March 30.

Earnings of technology and banking companies had helped the benchmark Sensex advance in the previous two weeks after they posted profit growth that met analysts estimates. Indian companies, however, have been cautious about giving outlooks as the pandemic continues to disrupt businesses.

Also read: India’s Stock Market Isn’t Pricing in a Full Covid Lockdown

Escorts Q4 Net Income Beats Estimates

Escorts Ltd reported net income for the fourth quarter that beat the average analyst estimate.

  • Net income Rs 271 crore, +94% YoY, estimate Rs 255 crore
  • Revenue Rs 2,210 crore, +60% YoY, estimate Rs 2,080 crore
  • Total costs Rs 1900 crore, +56% YoY
  • Dividend per share Rs 7.50
  • Ebitda Rs 345 crore, estimate Rs 338 crore

COMMENTARY AND CONTEXT

  • Dividend Includes Special Dividend of Rs 2.5 /share
  • The construction equipment business may see an impact of the current environment going ahead
  • The second wave of the pandemic has impacted rural geographies as well company’s core customer base, Chairman Nikhil Nanda said

Macrotech Q4 Net Profit Rs 311 Crore Vs. Rs 132 Crore

Macrotech reported net income for the fourth quarter of Rs 311 crore vs. Rs 132 crore YoY.

  • Revenue Rs 2,530 crore, -20% YoY
  • Total costs Rs 2,060 crore, -35% YoY
  • Other income Rs 77.6 lakh

Welspun India Jumps After Requalifying As Vendor For Target

Target Corp. completed a vendor re-empanelment process with Welspun Global Brands, a unit of Welspun India, the Indian firm says in a stock exchange filing.

  • Welspun India shares jumped as much as 6.8%
  • Welspun will “strive to foster a strong, transparent and sustainable business relationship” with Target going forward, according to the statement
  • Until 2016 financial year, Target accounted for 10% of Welspun India’s business

FOURTH QUARTER RESULTS

  • Net income Rs 130 crore, +52% YoY
  • Revenue Rs 2,140 crore, +32% YoY
  • Total costs Rs 1,990 crore, +28% YoY
  • Ebitda Rs 358 crore, +21% YoY
  • Ebitda margin 16.5% vs. 17.8% YoY
  • Approves Rs 200-crore share buyback at Rs 120 each

Dr Reddy’s Introduces Russian Sputnik V Covid-19 Shot in India

Dr Reddy’s Laboratories started a soft launch of Russia’s Sputnik V Covid-19 vaccine in India as part of a limited pilot, the drugmaker said in a press release

  • It received regulatory clearance from India’s Central Drugs Laboratory on May 13
  • The first dose of the vaccine was administered in Hyderabad on May 14
  • More consignments of imported doses are expected over the coming months
    • Soon after, Indian manufacturing partners will also start supplying the vaccine
  • Imported doses of the vaccine are priced at 948 rupees plus 5% GST per dose
    • Possibility of a lower price point when local supply begins
  • The company is “working closely with its six manufacturing partners in India to fulfil regulatory requirements to ensure smooth and timely supply”: statement

Meanwhile, the drugmaker reported Generics revenue for the fourth quarter that missed the average analyst estimate.

  • Net income Rs 554 crore, -27% YoY
  • Revenue Rs 4,730 crore, +6.8% YoY, estimate Rs 4,779 crore
    • Generics rev. Rs 3,870 crore, +6.3% YoY, estimate Rs 3,990 crore
    • North America revenue Rs 1,750 crore, -3.3% YoY, estimate Rs 1,821 crore
    • India sales Rs 845 crore, +24% YoY, estimate Rs 941 crore
    • Europe sales Rs 396 crore, +15% YoY, estimate Rs 404 crore
  • North America sales -3%
  • Total costs Rs 1,780 crore, +9.9% YoY
  • R&D expenses Rs 409 crore
  • Ebitda Rs 1,133 crore, +13% YoY, estimate Rs 1,065 crore
  • Gross margin 53.7%
  • Dividend per share Rs 25

COMMENTARY AND CONTEXT

  • Q4 gross margin 53.7%
  • Working on Molnupiravir, Baricitinib and several other Covid drugs
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