Market recap for 6 April 2021

Nifty50: 14,683 ▲ +45 (+0.3%)
Sensex: 49,201 ▲ +42 (+0.0%)

The markets moved in a yo-yo fashion today and lacked a clear direction. In all, 31 of the Nifty50 stocks ended in the green. 

Among the Nifty sectoral indices, Pharma (+1.7%) and Metal (+1.4%) were the top gainers, whereas Bank (-0.5%) and Media (-0.3%) continued to remain weak. 

Here are the top stories of the day.  

Adani Ports witnesses growth in cargo volumes

• In Q4, cargo volumes handled by Adani Ports grew 27% YoY to 73 million metric tonnes. For FY21, the growth rate stood at 11% YoY. 
• In the container segment, its volumes grew 16% YoY in FY21 and the company commanded a market share of 41% in India. The upbeat operational performance was reflected in its stock, which rose 14.5% backed by high volumes, indicating strong investor interest.  

Jindal Steel soars on strong sales and output

• The leading steelmaker reported a 37% YoY jump in sales volumes for Q4FY21. During the same period, the share of exports rose to 27% of sales from 15% last year. In FY21, it achieved its highest ever production and sales. 
• According to reports, the company will sell its entire stake in its subsidiary Jindal Power and use the funds to cut its overall debt and reduce carbon emissions. The sale is likely to be completed by the end of the month. The stock hit a fresh 52-week high intraday, before closing 1.3% higher today.

Saregama signs licensing deal with Triller

• The music label company has signed a global music licensing deal with Triller, an American short-video app. Through the license, the users of the Tik Tok rivalling platform can access Saregama’s entire music library to create content. 
• Saregama has also signed a similar deal with Facebook to make its library accessible to Instagram users. After the announcement, shares of Saregama climbed 7% before closing 5.2% higher. Notably, the stock has grown nearly seven times over the last year.

GM Breweries surges on strong quarter

• The Mumbai-based country-liquor maker recorded a 17% YoY growth in revenue from operations to ₹464 crore in Q4FY21. During the same period, profits surged by an impressive 155% to ₹45.3 crore.  
• The growth in net profit was boosted by higher other income, which grew 285% to ₹26.2 crore. Along with the results, the company also declared a dividend of ₹4 per share. The stock soared 8% intraday, but closed 1.2% higher today. 

Closing bell

The Nifty’s movement today remained within yesterday’s trading range and thus did not give any cues for what lies next. However, after the RBI’s interest rate decision tomorrow, banking stocks could drive the benchmark index in a clear direction. As we progress in this month, Q4 result announcements could trigger stock-specific movements. While most companies would benefit from the low base of Q4FY20 (when the pandemic struck), the street would be interested in the outlook for Q1FY22 in the light of rising Covid cases and stricter restrictions.

Good to know

What is capital expenditure?
Funds used by a company to acquire long-term assets such as a plant, building and technology is called capital expenditure or capex. Capex also includes money spent by a company to upgrade and maintain existing assets. The amount of capex is recorded on the balance sheet as opposed to operating expenses (opex), which are recorded in the income statement.

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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.