Morning Update for 8 April 2021

Indices at previous closing

Nifty50: 14,819 ▲ 135 (+0.9%)
Sensex: 49,661 ▲ 460 (+0.9%)
Nifty Bank: 32,991 ▲ 489 (+1.5%)

In the news

Godrej Consumer sees stable growth in Q4

• For Q4, Godrej Consumer estimates a 30% YoY growth in its India business. The company cited price hikes along with strong volume growth across its household insecticides, soaps and hair colour segments for its performance. 
• According to the company, Covid has changed consumer behavior toward personal and home hygiene and it expects this to be a strong focus area going forward. The stock closed 1.4% higher yesterday, and has traded nearly flat so far this year. 

Government sanctions PLI for white goods

• The government has approved a production-linked incentive (PLI) scheme of ₹6,238 crore bag for the white-goods segment.  
• The scheme will focus on component manufacturing and will be applicable to manufacturers of air conditioners and LED lights for five years. Although the news came after market hours, shares of companies like Dixon, Crompton and Voltas rose between 2 and 4% yesterday.

Graphite electrode makers see demand surge

• Pick up in steel production in India and globally augurs well for graphite electrode (GE) makers viz. Graphite India (+9.7%) and HEG (+18.3%). Graphite electrodes are the main heating element used in the steel making process. 
• Recently, major steel makers in India have announced strong sales growth in Q4. This would not only help to normalise electrode inventory but also create fresh demand leading to better plant utilisation for the GE makers. Shares of Graphite India and HEG have gained 115% and 132% so far in 2021. 

IMF raises India GDP growth forecast

• In its World Economic Outlook, the International Monetary Fund (IMF) said it expects India's GDP to grow at 12.5% in FY22. It has raised its forecast from 11.5%, which it had predicted in January 2021. 
• At this rate, India would not only be the fastest growing country among emerging economies but also the only country to register a double-digit growth. For FY23, GDP growth is pegged at 6.9%. 

Events of the week

Thursday: Initial jobless claims (US)

Sectoral indices (7 April)

Global markets (at 9:15 am)

Fact of the day

Toyota was conceptualized in 1933 as a car manufacturing division under Toyoda Automatic Loom Works Ltd, a company that used to make sewing machines.
Source: Toyota

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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.