Morning Update for 31 March 2021

Indices at previous closing

Nifty50: 14,845 ▲ +337 (+2.3%)
Sensex: 50,136 ▲ +1,128 (+2.3%)
Nifty Bank: 33,875 ▲ +556 (+1.6%)

In the news

Wabag receives large order in Bihar

• Chennai-based VA Tech Wabag has received a ₹1,187 crore contract from the Bihar Urban Infrastructure Development Corporation.
• Part of the National Mission for Clean Ganga scheme, the project requires the company to build a 150 million litres per day sewage treatment plant and a 453km-long sewer network. The company is expected to complete the project in 24 months. Its stock has contracted 15% in March so far. 

Metropolis sees growth in non-Covid tests

• Shares of the Mumbai-based diagnostic chain rose 8.1%, coupled with high volumes, indicating strong buying interest. As per its management, unlike the first wave of the pandemic, the company is seeing robust demand for non-Covid tests during the second wave. 
• Further, the company plans to increase its collections centers by 500 every year from the current 2,500 centers. These centers will feed into its 125 labs. 

IRB Infra builds strong order book

• Mumbai-based highway construction company has announced that its total order book stands at ₹14,509 crore, giving it revenue visibility of more than two years. 
• It recently won two highway orders worth ₹2,421 crore in West Bengal and ₹828 crore in Himachal Pradesh, making its entry into these states. The strong order flow notwithstanding, the shares of IRB have declined over 4% in March.

Indian markets see record fund inflow in FY21

• In the midst of the pandemic and precarious economic conditions, Indian companies have managed to raise a record ₹1.89 lakh crore from the markets in FY21. The amount is more than double that raised in FY20. 
• Of this inflow, about 73% was fresh capital, which came in from fundraising methods such as IPOs and follow-on public issues. 

Events of the week

Wednesday: Pending home sales, Crude oil inventories (US)

Thursday: Initial jobless claims, Manufacturing PMI (US)

Friday: Unemployment rate (US), Holiday (India)  

Sectoral indices (30 March)

Global markets (at 8:30 am)

Fact of the day

The Lakmé brand of cosmetics was started by the Tata Group in 1952 on a request from Prime Minister Jawaharlal Nehru’s office. In 1996, Tata Group sold its stake in Lakmé to HUL.

Source: Penguin

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