Morning Update for 6 April 2021

Indices at previous closing

Nifty50: 14,637 ▼ -229 (-1.5%)
Sensex: 49,159 ▼ -870 (-1.7%)
Nifty Bank: 32,678 ▼ -1,179 (-3.4%)

In the news

Bajaj Finance logs higher AUM in Q4

• Bajaj Finance, one of the country’s largest NBFCs, acquired 23 lakh new customers in Q4FY21. In the same period, its AUM increased by ₹9,500 crore and closed the fiscal at ₹153,000 crore. 
• Despite an increase in customer base, the number of loans booked during the quarter contracted by 8.3% to 5.5 million. The stock fell 5.7% yesterday and was the top loser in the Nifty50.

Sobha posts record quarterly sales in Q4

• In Q4, Bengaluru-based real estate developer clocked about 13.3 lakh square feet in total sales—its highest ever in a quarter—for a total value of ₹1,072 crore. Meanwhile, the total sales value increased 54% YoY. 
• The company has mentioned that better cash flows during the quarter helped in debt reduction and its average cost of borrowing has also come down. The stock was down 3.3% yesterday.

Panacea Biotec to produce Sputnik V vaccine

• The New Delhi-based pharmaceutical company has reportedly agreed to produce 100 million doses of the Russian vaccine per year. However, the Russian Direct Investment Fund (RDIF), which markets the vaccine, has not specified when the production will commence. 
• The two-shot vaccine is rated at an efficacy of 91.6%. Besides Panacea Biotec (-3.4%), listed companies that are expected to produce Sputnik V include Gland Pharma (+1.3%) and Dr Reddy's (-0.4%).  

Crude oil prices cool off

• The OPEC+ has agreed to ease its production cuts from May and will continue to do so till July. This is expected to increase the supply of crude oil and cool off prices. 
• Meanwhile, the rising Covid cases in India and resulting restrictions have raised concerns over demand for crude oil from the world’s third-largest oil importer. Crude oil prices fell over 5% on Monday.

Events of the week

Wednesday: RBI’s Interest rate decision, Services PMI (India), Crude oil inventories (US)

Thursday: Initial jobless claims (US)

Sectoral indices (5 April)

Global markets (at 8:45 am)

Fact of the day

Microsoft passed on the opportunity to acquire YouTube back in 2006. Six months later, Google paid $1.65 billion for what is now the world's most popular video streaming platform. 

Source: New York Times

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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.