Morning Update for 19 July 2021

Indices at previous closing

Nifty50: 15,923 ▼-0.8 (-0.0%)
Sensex: 53,140 ▼-18 (-0.0%)
Nifty Bank: 35,751 ▼-155 (-0.4%)

In the news

HDFC Bank reports strong profit growth

• India’s largest private bank reported a 16.1% year-on-year growth in net profit to ₹7,729 crore. This was despite the rise in provisioning for bad loans. A rise in net interest income and a sharp jump in other income boosted the lender’s bottom line.  
• However, the gross bad loans rose from 1.36% in June 2020 to 1.47% in June 2021. The management said that the second wave adversely impacted retail loan segment, card spends and collection efficiency. Shares of the bank were up 0.1% on Friday but the results were announced on Saturday.  

RRVL acquires controlling stake in Just Dial

• Reliance Retail Ventures (RRVL), the holding company of all retail companies under Reliance Group, is set to acquire a 66.9% stake in local search engine  Just Dial (JD). This move is expected to further boost RIL’s digital ecosystem under its New Commerce project to link partner merchants and small businesses. 
• The announcement came along with Just Dial’s Q1 results declared on 16 July after market hours. In the June quarter, Just Dial recently posted a loss of ₹3.5 crore, mainly due to advertising expenses of ₹50.5 crore during the quarter to promote its new B2B platform JD Mart. On Friday, shares of Just Dial had fallen 3.3% while those of Reliance gained 1.3%. 

LTFH’s profit grows, revenue falls

• L&T Finance Holdings (LTFH) posted a consolidated net profit of ₹178 crore for the June quarter, up 20% year on year. However, the NBFC’s revenue from operations dipped 7.3% YoY owing to an overall decline in interest income.
• Income from rural finance grew, while that from housing finance and infrastructure finance segments recorded a sharp decline. The company's gross non-performing assets (NPAs) rose slightly to 5.7% from 5.2% in the year-ago period. Shares of LTFH fell 0.4% on Friday but the results were declared after market hours.

Sectoral indices (July 16)

Global markets (at 8:00 am)

Fact of the day 

During the dotcom crash in 2000, around 280 internet stocks in the Bloomberg US Internet Index lost ₹1.7 trillion in market value, which is equivalent to Canada’s GDP.

Source: CNN Money

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