Morning Update for 24 June 2021

Indices at previous closing

Nifty50: 15,686 ▼ -85 (-0.5%)
Sensex: 52,306 ▼ -282 (-0.5%)
Nifty Bank: 34,745 ▼-126.30 (-0.36%)

In the news

PSU banks recover assets from defaulters

• The Enforcement Directorate has transferred assets worth around ₹9,371 crore seized from major defaulters to public sector banks. The recovered assets account for 40% of the losses suffered by the banks in these cases.  
• The PSU banks most affected by these defaults include SBI and PNB. While shares of SBI were flat yesterday, those of PNB rose 2.1%. Further, the Nifty PSU Bank index has gained 4% this week.

Housing sales expected to drop in Q1

• Housing sales are expected to fall 58% quarter-on-quarter during the April-June period across seven major cities, as per a study. The sharp drop is due to subdued sales on account of the second wave, which hit around the same time. 
• Despite the drop in sales volumes, the average property prices remain stagnant. It is expected that demand could pick up in the next quarter as restrictions ease and vaccination gathers pace. Meanwhile, the Nifty Realty index has risen 4.2% so far in this fiscal. 

Aster DM slips after weak Q4

• For the March quarter, the healthcare services provider reported a 20% year-on-year decline in consolidated net profit to ₹105 crore. The fall in net profit came despite a 5% rise in revenue from operations to ₹2,391 crore, partially due to higher other expenses.
• The management said that the second wave impacted its hospitals and pharmacies businesses in the GCC (Middle East), which contributes over 80% of the company’s revenues. However, the company aims to expand its presence in India and sees strong potential for growth. The stock fell nearly 5% intraday but later recovered and closed 2.7% lower for the day.

Sectoral indices (23 June)

Global markets (at 8:00 am)

Fact of the day

In the 1960s, Nokia was a conglomerate that sold everything from toilet paper to car tyres.

Source: Wired.com

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