Domestic equity benchmarks ended a volatile session with modest losses on Thursday. The Nifty ended below the 15,700 mark. Barring the IT and FMCG index, all the sectoral indices on the NSE ended in the red.

The barometer index, the S&P BSE Sensex, lost 178.65 points or 0.34% to 52,323.33. The Nifty 50 index fell 76.15 points or 0.48% to 15,691.40.

IndusInd Bank (down 2.91%), Axis Bank (down 1.51%), HDFC (down 1.37%), HDFC Bank (down 1.23%) and ICICI Bank (down 1.16%) were major drags.

In the broader market, the BSE Mid-Cap index fell 1.29% and the BSE Small-Cap index lost 0.58%.

The market breadth was negative. On the BSE, 1383 shares rose and 1822 shares fell. A total of 155 shares were unchanged.

Global cues were mixed after the US Federal Reserve on Wednesday, 16 June 2021, signaled that policy makers expect rates to rise earlier than previously expected by penciling in two increases by the end of 2023.

Firm crude oil prices also dented investors sentiment as brent crude is inching close to $75 per barrel.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 17,70,43,245 with 38,33,075 deaths. India reported 8,26,740 active cases of COVID-19 infection and 3,81,903 deaths while 2,84,91,670 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

A single day rise of 67,208 new coronavirus infections were recorded taking India's total tally of COVID-19 cases to 2,97,00,313, while the active cases declined to 8,26,740, the lowest after 71 days, according to the Union health ministry data updated on Thursday. The COVID-19 death toll climbed to 3,81,903 with 2,330 fresh fatalities, the data updated at 8 AM showed.

Economy:

The figures of direct tax collections for the FY 2021-22, as on 15 June 2021 show that net collections are at Rs 1,85,871 crore compared to Rs 92,762 crore over the corresponding period of the preceding year, representing an increase of 100.4% over the collections of the preceding year. The net direct tax collections include corporation tax (CIT) at Rs 74,356 crore (net of refund) and personal income tax (PIT) including security transaction tax (STT) at Rs 1,11,043 crore (net of refund).

The advance tax collections for the first quarter of the FY 2021-22 stand at Rs 28,780 crore against advance tax collections of Rs 11,714 crore for the corresponding period of the immediately preceding Financial Year, showing a growth of approximately 146%.

Meanwhile, the Reserve Bank of India (RBI) noted in a latest update that signs of the ebbing of the second wave of the pandemic are cautiously becoming evident. In fact, the data suggest that the second wave is rolling back almost as fast as it rolled in. The pandemic is a real shock with real consequences. Hence, there is a need to ensure that the recovery is built on a solid foundation of business investment and productivity growth.

Life- and work-style transformation such as increased remote work and online shopping may likely endure. When patterns of demand shift, some firms may face closure. Some industries may become permanently smaller. At the same time, existing firms in industries experiencing increased demand may expand and new ones will emerge, RBI added.

Numbers to Watch:

The yield on 10-year benchmark federal paper was flat at 6.045% as compared with 6.045% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 74.08, compared with its close of 73.3225 during the previous trading session.

MCX Gold futures for 5 August 2021 settlement fell 1.94% to Rs 47,564.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.76% to 91.82.

In the commodities market, Brent crude for August 2021 settlement fell 5 cents at $74.34 a barrel. The contract rose 40 cents, or 0.54% to settle at $74.39 a barrel in the previous trading session.

Foreign Markets:

European shares fell across the board while Asian stocks ended mixed on Thursday, 17 June 2021, after the U.S. Federal Reserve on Wednesday moved up its timeline for rate hikes.

U.S. stocks dropped Wednesday after the Federal Reserve raised its inflation expectations and moved up the time frame on when it will next hike interest rates.

The Federal Reserve on Wednesday began closing the door on its pandemic-driven monetary policy as officials projected an accelerated timetable for interest rate increases, opened talks on how to end crisis-era bond-buying, and said the 15-month-old health emergency was no longer a core constraint on U.S. commerce.

Signaling that broad changes in policy may happen sooner than expected, U.S. central bank officials moved their first projected rate increases from 2024 into 2023, with 13 of 18 policymakers foreseeing a liftoff in borrowing costs that year and 11 seeing two quarter-percentage-point rate increases.

The Fed also raised its headline inflation expectation to 3.4% for 2021, a full percentage point higher than the March projection, but the post-meeting statement continued to say that inflation pressures are “transitory.” Powell said inflation could run hotter than the Fed expected amid the economic recovery.

Buzzing Indian Segment:

The Nifty IT index rose 0.57% to 28,611.35. The index has added 3.89% in six sessions.

TCS (up 1.64%), Infosys (up 1.39%), Tech Mahindra (up 1.30%), Wipro (up 0.72%), HCL Technologies (up 0.57%) and Mindtree (up 0.54%) climbed.

Stocks in Spotlight:

Power Grid Corporation of India fell 0.99% ahead of its quarterly result today.

State Bank of India fell 1.35%. The bank said that its board will meet on Monday, 21 June 2021, to consider raising additional tier-1 (AT-1) capital through issuance of Basel III compliant debt instrument in USD and/or INR through a public offer or private placement to overseas and/or Indian investors during FY22.

Tata Steel fell 1.21%. Life Insurance Corporation of India (LIC) sold 2,43,33,412 equity shares, or 2.021% stake, in Tata Steel between 16 March 2021 to 15 June 2021. Post transaction, LIC decreased its stake in the steel major to 6.946% stake from 8.967% held earlier. The deal was executed as a market sale.

Somany Ceramics soared 8.85%. The company's consolidated net profit stood at Rs 35.26 crore in Q4 FY21 compared with net loss of Rs 9 crore in Q4 FY20. Revenue from operations surged 58.80% to Rs 561.74 crore in Q4 FY21 from Rs 353.72 crore in Q4 FY20.

L G Balakrishnan & Bros jumped 9.04%. HDFC Mutual Fund purchased 628,858 equity shares, or 2% stake, of LG Balakrishnan & Bros on 14 June 2021 through open market purchases. Following the transaction, HDFC AMC has increased its stake in LG Balakrishnan & Bros to 7.29% from 5.29% held earlier.

Welspun Enterprises (WEL) slumped 4.88%. The company's consolidated net profit tumbled 54.04% to Rs 40.94 crore on 20.84% rise in revenue from operations to Rs 568.82 crore in Q4 March 2021 over Q4 March 2020. Welspun recorded its highest ever EPC order book (excl. Kozhikode project) of Rs 8,437 crore as on 31 March 2021 with Rs 5,893 crore in road and Rs 2,544 crore in water segment. The company's cash and cash equivalents stood at Rs 375 crore in 31 March 2021 as against Rs 529 crore in 31 March 2020 and Rs 198 crore in 30 December 2020.

CESC rose 1.64%. The company's consolidated net profit jumped 13.49% to Rs 429 crore on a 10.26% rise in revenue from operations to Rs 2,890 crore in Q4 March 2021 over Q4 March 2020. The company's board has approved a proposal for sub-division of existing one share of Rs 10 each to be sub-divided into 10 shares of Re 1 each.

ISGEC Heavy Engineering shed 0.07%. The company said that it has received an order for the fabrication of above ground piping spools from Tata Projects. The broad scope includes manufacturing of more than 115,000 inch-dia shop fabricated piping spools of high-end metallurgies viz. alloy steel, stainless steel, and incoloy for a major project in the hydrocarbon sector.

Nureca slumped 4.89%. On a consolidated basis, Nureca's net profit surged 63.44% to Rs 3.89 crore on 3.39% fall in revenue from operations to Rs 31.84 crore in Q4 March 2021 over Q4 March 2020.

Punjab & Sind Bank fell 1.75%. The bank informed that Lanco Infratech's account with outstanding dues of Rs 215.17 crore has been declared as fraud and reported to the Reserve bank of India (RBI). The PSU bank said that the account has been fully provided for as per existing RBI norms.

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