June 14, 2021

Morning Update for 14 June 2021

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Indices at previous closing

Nifty50: 15,799 ▲+61 (+0.3%)
Sensex: 52,474 ▲ +174 (+0.3%)
Nifty Bank: 35,047 ▼ -83 (-0.2%)

In the news

DLF reports healthy Q4

The real estate major reported a net profit for ₹481 crore for the March quarter, as compared to a net loss of 1,857 crore in the same period last year. Profit growth was aided by an overall reduction in costs. Meanwhile, revenue from operations grew 1% to ₹1,712 crore.
The company said that it witnessed a recovery in the residential markets and expects this growth cycle to continue in the long run. It plans to scale up new product offerings across segments and geographies. The stock fell 1.1% on Friday but has gained 8.5% in this fiscal.

Cochin Shipyard's profit jumps

The country's largest commercial shipbuilder reported a 55% year-on-year rise in consolidated net profit to ₹236 crore for the March quarter. During the same period, revenue from operations rose 45% to ₹1,080 crore.
Revenue growth was boosted by a 85% rise in its ship repair segment, whereas profit was aided by an exceptional income of about ₹12 crore. The stock rose 3% on Friday and has gained over 10% so far this fiscal.

Automakers gear up for demand revival

Automobile manufacturers are ramping up the production as the unlocking of the economy takes place. In June, they are reportedly planning to achieve 85–90% of the manufacturing levels seen prior to the second wave, which had dented demand and production.
With cases declining and expectation of demand recovery, automakers are now brimming with confidence. The Nifty Auto index has gained 9% in this fiscal year.

Restaurants to face another rough year

The demand for dine-in services may not recover till the second half of FY22, according to a report by CARE Ratings. This is despite the easing of restrictions on businesses and movement in the wake of a drop in new cases.
The report states that the growth may be higher in the first three quarters of FY22 merely on the low-base effect of last year. (1) But this would be much lower than FY20 levels. The rating agency expects the overall market size of the food services industry to decline by 40–50%. Meanwhile, shares of restaurant chain operators such as Barbeque Nation, Jubilant FoodWorks, Westlife and Burger King have gained 5–40% since April.

Sectoral indices (11 June)

Global markets (at 8:00 am)