Morning update for 13 January 2021

Indices at 10:00 am

      Nifty50 14,628 ▲ 65 (0.4%) 

         Sensex 49,702 ▲ 185 (+0.3%)

  Nifty Bank 32,629 ▲ 290 (0.9%) 

In the news

Tata Elxsi posts highest quarterly profit 

• The design and technology services firm reported the highest-ever quarterly profit after tax at ₹105.2 crore, up 39.5% YoY. Its revenues grew by 12.7 YoY and operating margins rose to 30.1% from 22.2% last year. 
• It is seeing traction in its key client industries including healthcare, media and automotive. Further, the company entered Q4 with a stronger deal pipeline. Its shares rose 8.0% today and have gained over 40% in Q3.

Karnataka Bank profits grow in Q3

• The Mangaluru-based bank posted a net profit of ₹135.37 crore in Q3, growing 9.9% over the same period last year. Its gross NPAs stood at 3.1% versus 4.9% last year. Meanwhile, net NPAs have come down to 1.7% from 3.7% in the same period. 
• Its management said that efforts in realigning portfolio toward retail and mid-corporate advances is helping it improve its NII. The stock gained 1.2% this morning and has gained nearly 18% so far in January. 

Retail inflation cools off

• While the street was expecting retail inflation in December at around 5.3%, it received a welcome surprise as the numbers came in at 4.6% (versus 6.9% in November). This stands well below RBI’s upper tolerance level of 6%. 
• The fall in numbers was on account of a sharp drop in food inflation (due to a high base effect) from 9.5% in November to 3.4% in December.  

Crude oil spikes on declining inventory 

• WTI Crude oil prices gained over 1.3% as the US API crude oil inventories declined more than expected. Further, the news that Saudi Arabia plans to cut output by an additional one million barrels per day also boosted the price. 
• Despite worries that demand for oil would be subdued given the rising Covid cases globally, crude oil prices have steadily inched up as output has been kept in check by OPEC+ nations. So far this month, crude oil prices have risen 11%, after gaining nearly 27% and 7% in November and December, respectively. 

Events in this week

• Thursday: WPI Inflation (India), Initial jobless claims (US)

Sectoral indices

Fact of the day

Donald Trump is the first US president in nearly three decades to not secure a second term in the White House. George Bush Sr. (1989-1993) was the previous president to not get re-elected.
Source: Business Insider

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