Morning update for 22 January 2021

Indices at 10:00 am

           Nifty50 14,594 ▲ 3 (+0.0%)

          Sensex 49,563 ▼ 61 (-0.1%)

        Nifty Bank 31,937 ▼ 249 (-0.7%)

In the news

Generics business hurts Biocon’s Q3 

• Biocon’s profits contracted 19% YoY to ₹186.6 crore for Q3, while consolidated revenue grew 7.2% to ₹1,878.9. 
• The Bengaluru-based pharma company’s revenue improved on account of the growth of its research services and biosimilars businesses. However, moderate demand and supply disruptions hurt its generics business, which shrank 2.6% to ₹561 crore. Biocon’s shares fell 6.1% today, and have ceded nearly 11% in January. 

Jindal Steel gains on domestic growth

• The strong performance of the domestic steel and power business put JSPL back in black. The company posted a consolidated profit of ₹2,432 crore versus a loss of ₹257 crore in Q3 last year. 
• Consolidated revenues rose 39% YoY to ₹11,704 crore. The concern however stems from the fact that the steel industry is currently facing raw material scarcity which has led to a jump in iron ore prices. Its shares were flat today (), however, have gained nearly 13% in this month so far.  

JK Tyre posts best-ever quarterly sales

• Increased demand for passenger, commercial and farm tyres helped JK Tyre to post its best-ever quarterly consolidated sales of ₹2,769 crore, up 22% YoY. 
• Similarly, higher plant utilisation, improvement in operating efficiencies and lower interest costs supported the increase in profits. The net profits more than doubled to ₹230 crore. Its shares gained 13.1% today. These strong results also rubbed off on other tyre stocks, including Ceat (+6.1%), Apollo Tyre (+7.9%) and TVS Srichakra (+4.6%). 

Commodity futures boost Q3 profits at MCX 

• For Q3, the Mumbai-based commodity exchange posted ₹71.8 crore in profit after tax, a 29.2% YoY growth. During the same period, its consolidated operating revenue grew 7% to nearly ₹101 crore.
• The average daily turnover in commodity futures on the exchange rose 4% YoY. Its business remained largely unaffected as the commodity markets were exempted from lockdown restrictions. The stock traded almost flat but has lost about 3% this month. 

Events this week

• Friday: Reliance Industries Q3 results

Sectoral indices

Fact of the day

The banyan tree derives its name from the ‘Baniya’ community, who often conducted their business under these trees in the marketplace.
Source: Sacred Trees BHU

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