Morning update for 25 January 2021

Indices at 10:00 am

        Nifty50 14,330 ▼40 (-0.2%)

          Sensex 48,714 ▼ 164 (-0.3%)

        Nifty Bank 31,290 ▲ 123 (0.4%)

In the news

Reliance's Q3 beats street estimates

• Index heavyweight RIL’s Q3 consolidated profit at ₹13,101 crore beat street estimates of ₹11,313 crore by a wide margin. Its profits rose by 12.6% YoY.
• The rising share of digital services (Jio), fall in total expenditure and reduced tax expenses aided the profits, despite a near-21% decline in consolidated revenues to ₹1.23 lakh crore. 
• Jio’s earnings before interest and tax (EBIT) rose 46% YoY, supported by a stable market share. Furthermore, there was a 4.1% QoQ increase in the average revenue per user. Interestingly, the shares of RIL were down 3.9% today.

Tata Power Solar bags ₹1,200 cr project

• Tata Power Solar, a wholly-owned subsidiary of Tata Power, has won an order for a 320-megawatt ground-mounted solar project from state-run NTPC. Valued at approximately ₹1,200 crore, the project is set to be operational by May 2022.
• With the new order, the company’s net capacity stands at nearly 4 gigawatts and is valued at about ₹12,000 crore. Shares of Tata Power gained 0.4% today.

Ultratech’s Q3 soars on pick-up in housing and infra

• The Aditya Birla Group-owned cement major reported ₹1,584 crore in consolidated profits for Q3. The figure is more than double of the ₹711 crore it recorded during the same period last year. Its net sales of ₹12,254 crore are also 17% higher year-on-year.
• The company said that the demand for cement is driven by rural and semi-urban housing projects along with an uptick in government infrastructure projects. Further, pent-up urban demand is likely to boost demand as migrant labour returns to the cities. Shares of Ultratech gained 2.1% today.

Stovekraft IPO opens for subscription today

• Stovekraft is a Bengaluru-based kitchen appliance company, known for its Pigeon and Gilma brands, which make pressure cookers, cooktops, non-stick cookware, and other utilities. It is the market leader in the cooktops category. 
• The price band is set at ₹384-385 with a lot size of 38 equity shares. The IPO closes on 28 January 2021. To read more about the issue, click here. You can apply for the IPO with Upstox here.

Events this week

• Thursday: US GDP and jobless claims data

Sectoral indices

Fact of the day

The Twitter bird has an official name: Larry.
Source: Huffpost

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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.