Morning Update for 18 October 2021

Indices at previous closing

Nifty50: 18,338 ▲ +176 (0.9%)
Sensex: 61,305 ▲ +568 (0.9%)
Nifty Bank: 39,340 ▲ +705 (1.8%)

For more updates on F&O, click here.

In the news

HDFC Bank posts robust Q2 results

In the September quarter, the largest private lender’s net profit rose 17.6% year-on-year to ₹8,834 crore beating the street estimates of ₹8,796.8 crore. In the same period, the bank's net interest income was up 12% to ₹17,684 crore. In Q2FY22, the bank’s asset quality remained stable with the gross NPAs at 1.35% in Q2FY22 against 1.37% in Q2FY21. 

The bank has said that with a continued focus on deposits and healthy liquidity, it is well-positioned to capture the upcoming opportunities as the economic activities gain momentum during the festive months. Before the quarterly results, the HDFC bank's shares zoomed on Thursday to their 52-week high and closed 2.9% higher.

DMart’s Q2 profit doubles

Avenue Supermarts, which runs retail chain D-Mart, reported a 113% increase in its standalone net profit to ₹449 crore for the September quarter. This is higher than the street’s estimate of ₹390.5 crore. 

The company said that with the easing of lockdown restrictions, revenue from operations was up by 46.6% to ₹7,650 crore. The company did a soft launch of DMart Ready, the pick-up point for online service, in the cities of Surat and Vadodara. Meanwhile, DMart now has 246 stores in India. Shares of DMart were up 4.7% on Thursday.

Mahindra CIE Automotive’s profit surges

In the September quarter, the automotive component maker’s consolidated net profit rose 173.9% YoY to ₹166 crore. In the same period, the company’s revenue also increased by 23.3% to ₹2,090.6 crore. 

The robust growth in its revenue was driven by a rise in its India and Europe businesses. The management has said that despite the challenges like pandemic, chip shortage and rising raw material costs, the company is showing resilience with sustainable EBITDA margins. Shares of the company were down 1% on Thursday but the results were announced after the market hours. 

Sectoral indices (October 14)

Global markets (at 8:00 am)

Fact of the day

Around 88% of power is traded in India through purchase power agreements in India. 

Source: IEEFA.org

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