Morning Update for 7 July 2021

Indices at previous closing

Nifty50: 15,818 ▼ -16 (-0.1%)
Sensex: 52,861 ▼-18 (-0.0%)
Nifty Bank: 35,579 ▲+367 (+1.0%) 

In the news

Bajaj Finance sees strong Q1 growth

• Shares of the Pune-based NBFC closed at their highest level after its strong June quarter update. The lender added 19 lakh new customers in the June quarter this fiscal compared to 5 lakh added in the same period last year. 
• Further, it booked 46 lakh new loans, significantly higher than the 18 lakh loans booked last year. Meanwhile, its Assets Under Management (AUM) grew 12% YoY to ₹1.59 lakh crore. Its shares rose 2% yesterday amid a weak market. 

Grim picture ahead for broadcasters

• Broadcasters like Zee and Sun TV may face some challenges ahead as the Bombay High Court has upheld the revised New Tariff Order (NTO) proposed by TRAI. The revised NTO reduces the cap on the price charged per channel by broadcasters from ₹19 to ₹12.
• Further, it increases the number of channels covered under the base Network Capacity Fee (NCF) slab from 100 to 200. While these measures will benefit customers, broadcasters are concerned about the impact on their subscription revenues, which are finally rising after being subdued by the pandemic. Meanwhile, shares of Zee Entertainment are up 2% and those of Sun TV are down 0.5% so far this month. 

Two IPOs to open for subscription

• The IPO market is abuzz with two more initial public offerings (IPOs) being launched today. Specialty chemicals manufacturer Clean Science and Technology and roads and highways construction company GR Infraprojects will remain open for subscription from 7 July to 9 July. 
• Interestingly, both these issues are entirely offers for sale (OFS) and do not include any fresh issue of shares. These IPOs come after strong investor interest for the five public issues launched last month. Click here to apply for them on Upstox.

Key data releases this week

Thursday: Initial Jobless Claims (US), Crude Oil Inventories (US)

Sectoral indices (July 6)

Global markets (at 8:00 am)

Fact of the day

Tigers, mountain lions, bears and ferrets in a zoo in the San Francisco Bay Area are also getting the Covid vaccine. 

Source: Associated Press

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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.