Morning Update for 5 July 2021

Indices at previous closing

Nifty50: 15,722 ▲+42 (0.2%)
Sensex: 52,484 ▲+166 (0.3%)
Nifty Bank: 34,809 ▲+125.9 (0.3%)

In the news

Marico expects strong growth in Q1 

• Parachute and Saffola maker Marico expects its India business to deliver revenue growth of over 30% in the June quarter, backed by double-digit volume growth. It’s India business contributes over 75% of total revenues.
• However, the company expects profit growth to be muted owing to a higher base of Q1FY21, when ad spends were cut. Nonetheless, going forward Marico expects improving demand trends as the second wave shows signs of receding. Last week, Marico’s shares rose 1.6%.  

IPO buzz continues this week

• Two more companies are set to list on the stock markets this week. Speciality chemicals manufacturer Clean Science and Technology and roads and highways construction company GR Infraprojects are together expected to raise around ₹2,500 crore.
• These IPOs will be open for subscription between 7 and 9 July and you can apply for them on Upstox. Last month, five companies brought out their initial public issues, which witnessed strong investor interest. 

FPIs turn net buyers in June

• After being net sellers for two months, foreign portfolio investors (FPIs) became net buyers in June, investing a net ₹13,269 crore in Indian markets. Between 1 June and 30 June, FPIs invested ₹17,215 crore in equities, whereas they withdrew ₹3,946 crore in the debt segment.
• In June, declining daily cases and gradual reopening of the economy boosted the investor sentiments. Further, good quarterly results and a positive earnings growth outlook for most companies reignited FPI interest in Indian equity markets.

Key data releases this week

Monday: India PMI Services

Sectoral indices (July 2)

Global markets (at 8:00 am)

Fact of the day

In 1929, the Dow Jones crashed from a high of 381, which led to the Great Depression. It took the benchmark index 25 years to regain that mark. 

Source: CNN 

Yay 👍 or Nay 👎?
We'd love your thoughts on this morning update.

If you haven't already, open your Upstox account to get IPO-ready today! Click here to sign up.

To catch our latest educational videos, join our Telegram channel here.

Disclosures and Disclaimer

Investment in securities markets is 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.