Morning Update for 4 June 2021

Indices at previous closing

Nifty50: 15,690 ▲ +114 (+0.7%)
Sensex: 52,232 ▲ +382 (+0.7%)
Nifty Bank: 35,649 ▲ +275 (+0.7%)

In the news

Oil stocks zoom as crude rises

• Shares of oil exploration and production majors Oil and Natural Gas Corporation (ONGC) and Oil India (OIL) shot up to their 52-week highs yesterday amid rising global crude oil prices. The price of Brent crude oil continued to hover over the $70 per barrel mark. 
• The possibility of a global demand recovery coupled with a measured production approach by OPEC and its allies has led to a surge in international oil prices. ONGC and OIL gained 5.0% and 1.5%, respectively, yesterday. Both the stocks have risen by around 30% since the start of 2021.

Tata Motors raises $425 million to refinance debt

• Tata Motors, one of India’s largest automakers, has raised $425 million by issuing unsecured offshore bonds. The company will use the amount to refinance some of its existing debt and meet other expenses.
• The bonds were issued at a fixed rate of 4.35%. They were oversubscribed five times, indicating high investor interest. The company has net automotive debt of over ₹50,000 crore and plans to bring it down to zero by 2025. The stock closed 0.6% higher today and has gained around 8% so far this fiscal.

Quess Corp reports flat quarter 

• The Bengaluru-based workforce management company reported flat revenue growth in Q4. It suffered a net loss of ₹58 crore in the March quarter on account of provisions related to legacy government business and lockdown-related losses.
• However, the above loss would have been near zero if it were not for the one-time charge of ₹52 crore on account of changes in the tax law. The stock closed 1.8% higher yesterday, but has given almost flat returns so far in FY22.

Nilkamal posts healthy growth in Q4 

• The moulded-plastic furniture maker posted a 21% YoY rise in consolidated revenue from operations, supported by its core plastics business. Meanwhile, profit rose nearly 20% to ₹38 crore during the quarter. 
• Its profitability was impacted by a sharp rise in raw material prices. The stock closed 0.5% higher yesterday, and has returned about 64% so far this year.  

Sectoral indices (3 June)

Global markets (at 8:15 am)

Fact of the day

Investors who hold a minimum of 100 shares of the Ford Motor Company are entitled to a discount on Ford cars, provided they’ve held the shares for at least the past 6 months.

Source: Ford

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Investments 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.