Sensex, Nifty trade flat; FMCG stocks edged lower

The domestic equity barometers were currently trading flat with some negative bias in mid afternoon trade. The Nifty managed to hold above the 15,850 mark. FMCG shares witnessed some bit of selling pressure.

At 14:26 IST, the barometer index, the S&P BSE Sensex, was down 43.33 points or 0.08% to 52,932.47. The Nifty 50 index lost 4.35 points or 0.03% to 15,851.70.

The broader indices outperformed the benchmarks. The S&P BSE Mid-Cap index added 0.33% while The S&P BSE Small-Cap index rose 0.56%.

Buyers outpaced sellers. On the BSE, 1870 shares rose and 1435 shares fell. A total of 162 shares were unchanged.

Earnings Impact:

Kotak Mahindra Bank rose 1.03% at Rs 1740.80. The private sector bank reported a 32% increase in standalone net profit to Rs 1641.92 crore on a 5% rise in total income to Rs 8,062 crore in Q1 FY22 over Q1 FY21.

Operating profit before provisions and contingencies jumped nearly 19% to Rs 3,121 crore in Q1 FY22 over Q1 FY21. Net Interest Income (NII) for Q1FY22 increased to Rs 3,942 crore, from Rs 3,724 crore in Q1FY21, registering a growth of 6%. Net Interest Margin (NIM) for Q1 FY22 was at 4.60% as compared to 4.4% in Q1 FY21.

On the asset quality front, the bank`s gross NPAs stood at 3.56% as on 30 June 2021 as against 3.25% as on 31 March 2021 and 2.7% as on 30 June 2020. The ratio of net NPAs stood at 1.28% as on 30 June 2021 as against 1.21% as on 31 March 2021 and 0.87% as on 30 June 2020.

Provision and Contingencies reduced by 3% to Rs 934 crore in Q1 FY22 over Rs 962 crore in Q1 FY21. COVID related provisions as at 30 June 2021 were maintained at Rs 1,279 crore. In accordance with the Resolution Framework for COVID-19 and MSME announced by RBI, the bank has implemented total restructuring of Rs 552 crore as at 30 June 2021. Capital adequacy ratio of the bank as per Basel III as at 30 June 2021 was 23.1% and Tier I ratio was 22.2%.

United Spirits fell 3.79% to Rs 657.55. The liquor major`s consolidated net profit stood at Rs 50.30 crore in Q1 June 2021 compared with net loss of Rs 246.60 crore in Q1 June 2020. Revenue from operations soared 66.8% to Rs 1721.70 crore in Q1 FY22 over Q1 FY21.

Reported net sales increased after the company witnessed a healthy momentum in demand for the first three weeks of April 2021 until the second COVID-19 surge in India hit alarming levels and led to resumption of lockdown in various states. The restrictions on on-premise establishments and consumer behavioural shifts impacted the balance between the on- and off-premise occasion in most markets.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee fell to 74.46 compared with its previous closing of 74.4050.

MCX Gold futures for 5 August 2021 settlement added 0.38% to Rs 47,715.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.08% to 92.83.

The yield on 10-year benchmark federal paper rose to 6.167% from its previous close of 6.165%.

In the commodities market, Brent crude for September 2021 settlement lost 95 cents or 1.28% to $73.15 a barrel. The contract added 0.4% to settle at $74.10 in the previous trading session.

Buzzing Index:

The Nifty FMCG index shed 0.03% to 36,548.65. The index had gained 1.05% in the past two sessions.

Emami (up 1.83%), Varun Beverages (up 1.44%), Britannia Industries (up 1.06%), Dabur India (up 0.99%) and Colgate-Palmolive India (up 0.66%) were the top index gainers.

Meanwhile, United Breweries (down 0.51%), Hindustan Unilever (down 0.45%) and Jubilant Foodworks (down 0.40%) edged lower.

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