Morning Update 22nd February 2021

Previous closing (19 February 2021)

Nifty50: 14,981 ▼137 (-0.9%)

Sensex: 50,889 ▼434 (-0.8%)

Nifty Bank: 35,841 ▼ 745 (-2.0%)

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In the news

Jubilant gets larger slice of Domino’s pie

• The master franchisee of Domino’s Pizza (DP) in India will now buy a 32.81% stake in the American chain’s Eurasia business. This extends Jubilant Foodworks’ (JF) footprint as a franchisee holder into Turkey, Russia, Azerbaijan and Georgia.   
• The acquisition, pegged at 24.8 million pounds, will give JF access to a total of 771 stores, comprising dine-in, delivery and takeaway outlets. Last week, JF’s stock gained over 5%, in a weak market, and closed at its lifetime high. 

 

Maruti to capitalise on CNG demand 

• Soaring fuel prices have accelerated the demand for vehicles running on compressed natural gas (CNG). That’s a trend that the country’s largest carmaker aims to tap into. The company expects to sell 1.55 lakh CNG-powered vehicles this fiscal, a 50% YoY growth.  
• As per Maruti, the cost to run a CNG vehicle comes to ₹1.5/km versus about ₹4/km for petrol/diesel-powered vehicles. In addition to lower running costs, the increasing penetration of CNG filling stations in the country has also helped boost the alternative fuel. The shares of Maruti Suzuki lost 3.2% last week.   

 

Marico upbeat about demand revival

• After a relatively positive Q3, the maker of Parachute oil is optimistic about demand revival and growth in rural markets to drive business going forward. In fact, it aims to deliver mid-teen growth in volumes in the upcoming quarters.  
• However, the FMCG major expects a transient pressure on margins owing to rise in raw material costs. It expects to clock up to ₹500 crore (from around ₹350 crore expected in FY21) from its health and immunity foods segment in FY22 where it has launched several new products recently. The stock gained about 3.2% last week. 

 

FPIs continue buying spree om

• Foreign portfolio investors (FPIs) pumped in a total of ₹24,204 crore into the Indian equity markets in February so far. The figure for January was ₹19,473 crore.  
• As per reports, the buying spree is on account of high growth expectations from India in 2021, coupled with a positive Q3 results season and a pro-growth Budget. Emerging markets such as India are likely to continue receiving foreign investments as long as global central banks maintain their accommodative stance in order to revive their economies. 

 

Events of the week

• Wednesday: New home sales, Crude oil inventories (US)
• Thursday: Initial jobless claims, Pending home sales (US)
• Friday: GDP (India)

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Sectoral indices (Previous closing)

Top gainers	Top losers
NA	Nifty PSU Bank ▼ 4.7%
NA	Nifty Auto ▼2.6%

Global markets (at 8:30 am today)

Indices	Today's movement
Nikkei 225 (Japan)	▲ 0.7%
Hang Seng (Hong Kong)	▲ 0.2%
SSE Composite (China)	▲ 0.0%
Dow Jones (US) (19 Feb)	▲ 0.0%

Fact of the day

Tata Airlines–founded by J. R. D. Tata–was India’s first air service flight. It was rechristened Air India in 1946 and nationalised in 1953.
Source: Economic times

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Disclosures and Disclaimer

Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice. Investors should consult their investment advisor 

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Indian Railway Finance Corporation - RailTel IPO

 After the Indian Railway Finance Corporation, we have another railway-related company about to get listed - Railtel Corporation of India. The government wholly owns it and it is an information and communications technology ("ICT") infrastructure provider that falls under the Ministry of Railways' administrative control.

The RailTel IPO is available for subscription from 16th to 18th February 2021 & you can apply for this by clicking - invest.upstox.com/ipo/

Here's more information on RailTel to make an informed decision:

RailTel was set up to modernise telecom systems for the railways by creating an optic fiber-based broadband network along railway tracks. As of 30th June 2020, its optic fiber network covers over 55,000 route kilometres and covers 5,677 railway stations across India.

In FY20, the company generated about 25% of its revenues, or ₹283 crores, from projects with the Indian Railways. The company claims to be net-worth-positive since inception. It is valued at ₹1,369.3 crores in FY20. Its operations are funded entirely by internal accruals since Fiscal 2013 and the company is debt-free. Its financials have steadily risen too. Revenues from operations have grown at a CAGR of 7.4% during FY18-20, with the company clocking ₹1,128 crores in the last fiscal. In FY20, RailTel reported a net profit margin of 13%. For reference, margins for Reliance Jio Infocomm Limited and Tata Communications Limited stood at 10% and 4%, respectively.

Price band: ₹93-₹94

Lot size: 155 equity shares

Issue date: 16 - 18 February 2021

Allotment date: 23 February

You can learn how to apply for an IPO by clicking here

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Morning-update-for-15-february-2021

 Previous closing (12 February 2021)

Nifty50: 15,163 ▼10 (-0.0%)

Sensex: 51,544 ▲ 12 (+0.0%)

Nifty Bank: 36,108 ▲356 (+1.0%)

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In the news

ONGC's posts a weak Q3

• While crude oil prices are rising at the moment, they are still lower than what they were in Q3 of last fiscal. For ONGC, the per-unit realization for crude oil and gas were 25% and 45% lower on YoY basis, respectively. 
• Its standalone profit was down 67% YoY to ₹1,378 crore and revenues stood at ₹17,024 crore, down 28%. Last week, its shares fell 0.6%. However, they are up nearly 10% this month. 

 

IRFC announces strong quarter plus dividend

• The recently listed Indian Railway Finance Corporation emerged strong in Q3, reporting a 15% YoY growth in net profit to ₹1,046 crore. Its revenue from operations at ₹3,932 crore rose 8% during the same period.
• After a tepid listing, the company has declared a dividend of ₹1.05 per share. The share still trades below its issue price of ₹26, and closed flat on Friday.

 

Sunteck sees improved demand in Q3

• The Mumbai-based realty developer posted revenues of ₹205 crore up 20% YoY. However, the company’s net profit contracted 12% to ₹22 crore during the same period. Sequentially, however, net profit rose 59%. 
• The company saw improved demand across completed and new projects in Q3. The stock closed 1.8% lower on Friday, but has gained nearly 186% this month.  

 

Inflation and IIP show improvement

• The retail inflation eased to 4.06% in January versus 4.59% in December, mainly due to moderation in food inflation. The street had forecasted 4.45% for January. 
• Meanwhile, the IIP, which indicates industrial activity in the economy, rose 1% in December (versus a contraction of 2.1% in November). The numbers are higher than the street’s forecast of a 0.2% decline. The improvement was driven mainly by growth in manufacturing and electricity.

Events of the week

• Monday: Wholesale Inflation (India)
• Wednesday: Retail sales (US)
• Thursday: Crude oil inventories, Initial jobless claims (US)

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Sectoral indices (Previous closing)

Top gainers	Top losers
Nifty Bank ▲ 1.0%	Nifty Metal ▼ 1.7%
Nifty Fin Serv ▲ 0.9%	Nifty FMCG ▼1.5%

Global markets (at 8:30 am today)

Indices	Today's movement
Nikkei 225 (Japan)	▲ 1.1%
Hang Seng (Hong Kong) (11 Feb)	▲ 0.4%
SSE Composite (China) (10 Feb)	▲ 1.4%
Dow Jones (US) (11 Feb)	▲ 0.0%

Fact of the day

Nokia was once famous as a manufacturer of toilet paper and car tyres.

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SIP

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Mutual Fund Types

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Basics

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Market Recap for 21 January 2021

 

Nifty 14,590 ▼ 54 (-0.3%) Sensex 49,624 ▼ 167 (-0.3%)

The Sensex crossed the 50,000 milestone, leading to some early cheer. However, profit booking spooked the party in the last hour of the day. The market breadth turned negative, with 33 of the Nifty50 stocks closing in the red. Every major sectoral index closed in the red, with the Nifty PSU Bank (-3.2%) and Nifty Realty (-2.5%) indices losing the most. Top gainers (Nifty50) Tata Motors ▲ 6.3% Bajaj Finance ▲ 2.6% Reliance ▲ 2.5% Top losers (Nifty50) ONGC ▼ 3.3%     Tata Steel     ▼ 2.9% Coal India ▼ 2.6% Here are the top stories of the day. Bajaj Auto scoots ahead on record revenues Shares of Bajaj Auto surged as high as 4.5% intraday as it reported its highest-ever revenues and profits. Its revenues from operations grew 17% YoY to ₹8,909 crore and consolidated net profit jumped 30% YoY to ₹1,716 crore. The strong performance was driven by high operating leverage and a better product mix. The stock witnessed some profit booking in line with the fall in the broader market and ended the day with gains of 1.6%. Decorative paints boost profits for Asian Paints Q3 profits for the country’s largest paint maker shot up 62% YoY to ₹1,265 crore for Q3, much higher than street estimates of ₹971 crore. Further, the company’s revenues grew 25% to ₹6,788 crore. It witnessed a strong demand recovery across business segments. Shares of Asian Paints rose 1.5% today, as did shares of decorative paint makers such as Berger Paints (+1.6%) and Kansai Nerolac (+3.1%). Akzo Nobel (known for the Dulux brand) was an exception as it fell 1.2%.The decorative paints segment is gaining attention due to a positive response for the Indigo Paints IPO. Click here to apply. Kajaria Ceramics gains on demand from smaller cities The rise in demand for tiles from smaller cities helped Kajaria Ceramics to post a 11% YoY growth in sales volumes. Even revenues from operations clocked a 13% YoY rise to ₹838 crore. Tighter cost controls helped boost margins and led to a 93% YoY rise in net profit to ₹118 crore. The stock gained 1.2% today, along with shares of other ceramic makers, such as HSIL (+6.3%), Somany Ceramics (+5.0%) and Cera Sanitaryware (+1.6%). Consumer durables stocks in demand In its Q3 results, Havells reported revenue growth of 46% YoY in electrical consumer durables. Further, its subsidiary Lloyd, which primarily makes AC and fridges, posted revenue growth of 70% YoY. Havells was able to gain share from the unorganised sector and also benefited from import prohibitions. The strong growth rates reported by Havells triggered buying in shares of peers such as Vguard (+9.2%) Crompton Greaves (+7.9%), Whirlpool (+6.0%), Polycab (+6.1%) and Voltas (+5.0%). Closing bell After a flying start and creating history with #SensexAt50k, the markets witnessed sharp profit booking, which could make traders nervous. Technically, the market seems to be losing momentum. Tomorrow, Reliance Industries is expected to announce its Q3 results and the street is expecting a nearly 3% YoY decline in consolidated net profit. As we have mentioned earlier, volatility would be the order of this month and traders must be prepared for it. Good to know What are NPAs? If interest is not received for 3 months, a loan turns into a non-performing asset (NPA), also referred to as gross NPA. A high gross NPA ratio means that the bank’s asset quality is in bad shape. Banks set aside (provide for) funds for some loans going bad. The net NPA is that portion of bad loans that has not been provided for in the books. If you haven't already, open your Upstox account to get IPO-ready today! Click here to sign up.

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Morning update for 21 January 2021

 

 

Indices at 10:00 am

           Nifty50 14,706 ▲ 61 (+0.4%)

               Sensex 50,042 ▲ 249 (+0.5%)

       Nifty Bank 32,680 ▲ 136 (+0.4%)

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In the news

RIL-Future Group deal gets SEBI nod

• The SEBI has approved the ₹24,713 crore deal between Reliance Industries and the Future Group. The approval came through despite Amazon’s plea in the Delhi High Court to stay the deal. 
• As part of the deal, Future Group will sell its retail, wholesale, logistics and warehouse businesses to Reliance Retail Ventures (RRVL), a subsidiary of Reliance Industries. Shares of Reliance Industries (+2.3%), Future Retail (+4.9%) and Future Supply Chain Solutions (+4.9%) we're trading in the green today.  

 

Bajaj Finance Q3 profits plunge

• The consumer lending-focused NBFC reported a 29% YoY fall in its net profits, which stood at ₹1,146 crore in Q3 compared to street estimates of ₹1,181 crore. At ₹6,658 crore, its revenues too declined 5% during the same period. 
• Meanwhile, assets under management increased 4.3% to ₹1.4 lakh crore. Most of its businesses are disbursing 85-100% of last year volumes, except for auto finance which is still lagging. Results notwithstanding, the stock gained 3.2% today but as ceded around 2.6% in January.

 

Havells Q3 profits rise on demand boost

• The electrical equipment maker reported a 39.4% YoY jump in its Q3 standalone revenues to ₹3,166 crore. The sales growth was mainly supported by improved consumer sentiment, festive demand and increased penetration in smaller towns.   
• Its net profit soared 75% YoY to ₹349 crore mainly due to lower advertisement and sales promotion expenses. Shares of Havells rose (+7%) today and are up 16% so far in January. 

 

Tejas Networks Q3 revenues soar

• Shares of the networking products maker jumped () today after it reported Q3 consolidated revenues of ₹134.9 crore, up 56% YoY. Compared to a loss of ₹112 crore in Q3 last year, it delivered a net profit of Rs. 9.2 crore. 
• Its order book increased by ₹73 crore to 672 crore. The company said that its cash flow position is improving and it currently holds cash and cash equivalents of ₹335 crore with no debt on the books. 

 

Events this week

• Thursday: Home First Finance IPO opens (India), Initial Jobless claims (US)
• Friday: Reliance Industries Q3 results

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Sectoral indices

Top gainers	Top losers
Nifty IT ▲ 1.2%	Nifty Metal ▼ 0.6%
Nifty Auto ▲ 0.7%	Nifty Realty ▼ 0.1%

 

Global markets	Today's movement
Nikkei 225 (Japan)	▲ 0.9%
Hang Seng (Hong Kong)	▲ 0.1%
SSE Composite (China)	▲ 1.3%
Dow Jones (US) (15 Jan)	▲ 0.8%

Fact of the day

Exactly 45 years ago, Concorde inaugurated the world’s first scheduled supersonic passenger service from London to Bahrain.

The Indian Rail Finance Corporation IPO is live on Upstox. You can subscribe to the IPO with Upstox here.

If you haven't already, open your Upstox account to get IPO-ready today! Click here to sign up.

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Market recap for 20 January 2021

 

 

Nifty50: 14,644 ▲ 123 (0.8%)

     Sensex: 49,792 ▲ 393 (+0.8%)

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The Indian markets opened in the green and marched upward throughout the day. The rise was supported by advances in 32 out of the Nifty50 stocks. 

Except for the Nifty FMCG (-0.1%), which closed almost flat, all sectoral indices traded in the green. The Nifty Auto and Nifty IT indices rose the most, gaining about 2.2% each.

Top gainers	Today's change
Tata Motor	▲ 6.0%
Adani Ports	▲ 4.4%
Wipro	▲ 3.4%

 

Top losers	Today's change
Power Grid	▼ 2.1%
Shree Cement	▼ 1.8%
NTPC	▼ 1.5%

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Here are the top stories of the day.

Metals sales boost Hindustan Zinc’s Q3 profits

• The integrated zinc-lead producer, which is a part of the Vedanta Group, reported a 36% YoY jump in Q3 profits, to ₹2,200 crore. During the same period, revenues from operations grew 28% to ₹5,915 crore. 
• The company said the rise in profits is a result of the increase in sales of metals. Sales of silver rose 66%, zinc by 21% and lead by 25% YoY. Today, the stock saw profit-booking and fell 1.1% after rising over 11% yesterday.

 

Federal Bank’s asset quality improves

• The Kochi-based private bank’s Q3 profits dipped 8% YoY to ₹404 crore. The drop comes primarily due to a two-fold increase in provisioning for bad loans. In contrast, the bank's total income at ₹3,941 improved 5.4% over the same period last year.
• The bank’s gross NPAs declined from 2.9% to 2.7%, while net NPAs too were down to 0.6% against 1.6% last year, indicating an improvement in asset quality. The stock gained 2.5% today.

 

Adani Green to set up solar plant in Kutch

• Shares of the renewable energy producer were upbeat after the company announced that it has commissioned a 150 MW solar power plant in Kutch, Gujarat, three months ahead of schedule. 
• This takes the company’s total operational renewable capacity to 3,125 MW, with an additional 11,670 MW capacity under implementation. The company aims to set up 25,000 MW capacity by 2025. The stock was up 2.3% today.

 

Gateway Distriparks soars on Q3 results

• Shares of the logistics service provider were locked in the 20% upper circuit today as its Q3 consolidated net profits nearly doubled to ₹32.6 crore. 
• Strong operating performance led to the rise in profits even as total income grew by a meagre 4% YoY to ₹316.2 crore. Due to a faster-than-expected recovery in exports and imports, the company witnessed improvement in volumes sequentially every month since the beginning of Q3.

 

Crude oil gains on weak dollar

• Crude oil prices rose over 1% today due to signs of weakness in the US dollar. Further, the new stimulus from the US government is expected to revive growth and boost demand for oil. 
• Meanwhile, the International Energy Agency (IEA) reduced estimates for oil demand in 2021 amid extension of lockdowns in some European countries and fresh lockdowns imposed in certain parts of China.

 

Closing bell

The Indian markets ended the day on a positive note, taking cues from most global equity indices. The Nifty hit a lifetime high and the Sensex is less than one per cent away from the coveted 50,000 mark. The mood, in general, is cheerful, with even gold and silver prices on an upward move. Further, most Q3 results have been in line with or better than street expectations and thus do not give any negative signals.

Meanwhile, index heavyweight Reliance Industries is expected to announce its results on Friday and in the run-up to the results it has already gained nearly 6% this week.

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Good to know

What is a ASBA?

ASBA or Application Supported by Blocked Amount, is a mode of payment developed by the SEBI to subscribe to issues (such as IPOs). Through this method, the application money remains in the investor's account till shares are allotted.

 

The Indian Rail Finance Corporation IPO is live on Upstox. You can subscribe to the IPO with Upstox here.

If you haven't already, open your Upstox account to get IPO-ready today! Click here to sign up.

 

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