The benchmark indices further extended major gains during afternoon trade. The Nifty index hovers above 15,850 mark.

At 13:20 IST, the barometer index, the S&P BSE Sensex, rose 324.90 points or 0.62% at 52,911.74. The Nifty 50 index gained 104.75 points or 0.66% at 15,867.80.

Reliance Industries (RIL) (up 1.68%), Infosys (up 1.10%) and Tata Consultancy Services (TCS) (up 0.96%) boosted the market.

Broader markets outperformed the benchmark indices. The S&P BSE Mid-Cap index added 0.89%. The S&P BSE Small-Cap index rose 1.12%.

Buyers outnumbered the sellers. On the BSE, 2,198 shares rose and 1,048 shares fell. A total of 164 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,848.31 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,956.68 crore in the Indian equity market on 30 July 2021, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 19,83,35,925 with 42,24,492 deaths. India reported 4,13,718 active cases of COVID-19 infection and 4,24,773 deaths while 3,08,57,467 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India reported 40,134 new cases of the COVID-19 in the last 24 hours, a government statement said on Monday. Deaths rose by 422 in the same period, according to the federal health ministry.

Economy:

The gross GST revenue collected in the month of July 2021 stood at Rs 1,16,393 crore of which CGST was Rs 22,197 crore, SGST was Rs 28,541 crore, IGST was Rs 57,864 crore (including Rs 27,900 crore collected on import of goods) and Cess was Rs 7,790 crore (including Rs 815 crore collected on import of goods).The above figure includes GST collection received from GSTR-3B returns filed between 1st July 2021 to 31st July2021 as well as IGST and cess collected from imports for the same period.

With the easing out of COVID restrictions, GST collection for July 2021 has again crossed Rs 1 lakh crore, which clearly indicates that the economy is recovering at a fast pace.

Meanwhile, India's unemployment rate fell to a 4-month low of 6.95% in July 2021 [Urban (8.30%) and Rural (6.34%)] as compared to 9.17% in June 2021 [Urban (10.07%) and Rural (8.75%)].

Gainers & Losers:

Britannia Industries (up 2.97%), Titan Company (up 2.94%), Shree Cements (up 2.53%), Adani Ports & Special Economic Zones (APSEZ) (up 2.50%) and Indian Oil Corporation (IOCL) (up 2.33%) were major gainers in Nifty 50 index.

UPL (down 2.18%), Tata Steel (down 1.38%), Power Grid Corporation of India (down 0.88%), NTPC (down 0.80%) and Tech Mahindra (down 0.79%) were major losers in Nifty 50 index.

Earnings Impact:

Housing Development Finance Corporation (HDFC) rose 0.57%. The housing financer reported 1.7% fall in standalone net profit to Rs 3,000.67 crore on a 10.4% fall in total income to Rs 11,663.14 crore in Q1 FY22 over Q1 FY21. The net interest income (NII) for the quarter ended 30 June 2021 stood at Rs 4,147 crore compared to Rs 3,392 crore in the previous year, representing a growth of 22%. The reported Net Interest Margin (NIM) was 3.7%.

The spread on loans over the cost of borrowings for the quarter ended 30 June 2021 was 2.29%. The spread on the individual loan book was 1.93% and on the non-individual book was 3.32%. For the quarter ended 30 June 2021, cost to income ratio stood at 8% compared to 9% in the previous year. Profit on sale of investments was Rs 263 crore in the first quarter as compared with Rs 1,241 crore in the same period last year.

Total expenses during the quarter declined by 17.6% Y-o-Y to Rs 7,758.57 crore, primarily due to lower finance cost (down 16.6% Y-o-Y) and lower impairment on financial instruments (down 42.8% Y-o-Y). Profit before tax in Q1 FY22 stood at Rs 3,904.57 crore, up by 8.3% from Rs 3,606.83 crore in Q1 FY21. Total tax expense rose 62.8% YoY to Rs 903.90 crore during the period under review.

Macrotech Developers spurted 7.44% after the real estate company posted a consolidated net profit of Rs 160.91 crore in Q1 FY22 as compared to a net loss of Rs 134.44 crore in Q1 FY21. Consolidated net sales soared 221% to Rs 1,605 crore in Q1 FY22 from Rs 500 crore in Q1 FY21. On a sequential basis, net profit slumped 48% while net sales declined 36.6% in Q1 FY22 over Q4 FY21. Profit before tax stood at Rs 219.56 crore in Q1 FY22 as compared to a pre-tax loss of Rs 230.52 crore in Q1 FY21.

The company witnessed strong recovery from the second wave of COVID-19 with pre-sales of Rs 650 crore in June which is 69% of the overall pre-sales in the quarter, inspite of the continuing partial restrictions in Mumbai. For Q1 FY22, Lodha had 88% growth in pre-sales and 346% growth in collections compared to Q1 FY21 which was the first wave of COVID.

Global Markets:

European stocks and Asian markets rallied across the board on Monday, 2 August 2021 tracking positive sentiment around the world to begin the month.

The Caixin/Markit manufacturing Purchasing Managers' Index for July 2021 released on Monday came in at 50. The Caixin manufacturing PMI figure had come in at 51.3 in June 2021. China's official manufacturing PMI released over the weekend also showed factory activity growth slowing in July 2021, with the figure for the month coming in at 50.4 versus June's reading of 50.9. The COVID-19 situation in the region may also weigh on investor sentiment. More areas in Japan entered a COVID-19 state of emergency on Monday due to a spike in virus cases, as per reports.

U.S. stock indexes closed lower Friday, with renewed concerns about a rise of cases of the delta variant COVID-19 and disappointing results from Amazon.com partly blamed for the slump. Data on Friday showed the core personal consumption expenditures price index rose 3.5% in June year over year. A final reading of the University of Michigan's consumer-sentiment index fell to 81.2 in July from a reading of 85.5 in June, though it exceeded the initial July figure of 80.8.

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