Morning Update for 15 July 2021

Indices at previous closing

Nifty50: 15,853 ▲+41 (+0.2%)
Sensex: 52,904 ▲+134 (+0.2%)
Nifty Bank: 35,668 ▼-5 (-0.0%)

In the news

Infosys raises revenue outlook

• India’s second largest IT company has revised its revenue outlook for FY22 upward to 14-16% from 12-14%. Its June quarter revenues rose at the fastest pace in a decade at 16.9% year-on-year and 4.8% quarter-on-quarter in constant currency. The optimism was backed by large deal flows. 
• In Q1 revenues in rupee terms rose 6% QoQ to ₹27,896 crore better than street estimates of ₹27,655. Meanwhile, profit rose 2.3% QoQ to ₹5,195 crore lower than market expectation of ₹5,378 crore. Shares of Infosys rose 2.1% today, however, the results came after market hours. 

L&T Tech reports strong Q1 profit

• The engineering services arm of the L&T group reported an 84% YoY rise in consolidated net profit to ₹216 crore for the June quarter, beating the street estimate of ₹185 crore. The profit growth was driven mainly by a 17% rise in revenue from operations at ₹1,518 crore. 
• On a sequential basis, revenues grew 5.4% and profits were up 11.1%. During the quarter, the company won 6 deals worth over $10 million, including 2 deals worth over $25 million. The company said the deal pipeline is healthy across segments, and it expects broad-based growth to continue. The stock rose 2.5% today.

Dodla Dairy posts profitable Q1 

• The Hyderabad-based company, which made its debut on the stock markets last month, reported a consolidated net profit of ₹9.5 crore in the June quarter as compared to a loss of ₹1.9 crore in Q1FY21. The growth in the profit was led by a fall in raw material costs (milk). 
• The revenue growth was flat at ₹530 crore. The management has said that the impact of the pandemic on business has been minimal as milk is classified as an essential commodity. Shares of the company were down 0.8% today, but have risen by 45% against the issue price.

Key data releases this week

Thursday: Trade Balance

Sectoral indices (July 14)

Global markets (at 8:00 am)

Fact of the day

Tibet’s first bullet train runs at such high altitude that it has been equipped with automated oxygen supply, which maintains oxygen levels at 23.6%.

Source: CNN Travel      

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.