Morning update for 19 January 2021

Indices at 10:00 am

           Nifty50 14,379 ▲ 98 (+0.6%)

               Sensex 48,951 ▲ 387 (+0.8%)

       Nifty Bank 31,967 ▲ 156 (+0.4%)

In the news

Mindtree Q3 earnings beat expectations

• The Bengaluru-based IT firm’s Q3 net profit grew 28.7% QoQ to ₹326 crore.  Margin expansion by 350 bps to 23.5% aided profits. Meanwhile, its revenues rose 5% over Q2 to ₹2,023.7 crore better than street estimates of ₹1,995 crore.
• The company added eight new clients and bagged deals worth $312 million in Q3. The stock is up 2.6% today and gained nearly 24% in Q3.

Indiabulls charges ahead on upbeat Q3

• Mumbai-based Indiabulls Real Estate reported a 64% YoY rise in consolidated net profit to ₹80 crore even as its revenue dipped by 42% YoY to ₹756 crore. 
• Its shares rose 12.1% today after the company said that affordability of real estate is at a multi-year high owing to declining interest rates. Further, the company added that it was seeing high demand for its completed projects. 

IRB Infra Q3 profit declines

• The highway infrastructure company's consolidated profits fell 56% YoY to  ₹69 crore in Q3. However, the company reported a recovery on a sequential basis, and was able to recoup all the losses of the first half of FY21. At ₹1,595 crore, the company's revenues dropped by 11% during the same period. 
• The company mentioned that toll collections are now above pre-Covid levels and it is seeing a strong recovery in the construction segment. Its shares rose 0.7% today. 

China rises amid global slump

• The Chinese economy grew by 2.3% in 2020, the slowest pace in the last 44 years. However, it is expected to be the only major economy to show positive growth in the pandemic-hit year.
• While the economy contracted 6.8% in the January to March quarter, it quickly rebounded from the second quarter of calendar year and grew at 6.5% in the September-December quarter. China’s GDP now stands at $15.4 trillion. Chinese benchmark equity index SSE composite rose nearly 14% in 2020.

Gold gains on stimulus hopes

• The street is hopeful that the Biden administration in the US will provide additional economic stimulus and that the Fed policy would continue to remain accommodative.
• The resultant boost in liquidity could continue to provide support to gold prices as the yellow metal acts as a hedge against inflation. Gold prices recovered nearly 2% from yesterday’s low. 

Events this week

• Wednesday: Indigo Paints IPO opens (India)
• Thursday: Home First Finance IPO opens (India), Initial Jobless claims (US)

Sectoral indices

Fact of the day

Although no longer connected to the beer company, Guinness World Records was founded by the managing director of Guinness Brewery in the 1950s.
Source: History.com 

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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 by RKSV group. Investors should consult their investment advisor before making any investment decision.