Morning Update for 27 October 2021

Indices at previous closing

Nifty50: 18,268 ▲ +143 (0.7%)
Sensex: 61,350 ▲ +383 (0.6%)
Nifty Bank: 41,238 ▲ +45 (0.1%)

For more updates on F&O, click here.

In the news

Zee surges on HC win

On Tuesday, the Bombay High Court granted an injunction to Zee Entertainment in its appeal to not call an Extraordinary General Meeting (EGM) of shareholders. Following this development, shares of the media conglomerate rose 6% intraday.

It is important to note that Zee Entertainment has been embroiled in a legal dispute with its largest shareholder, Invesco, since September 2021. The latter had first demanded an EGM in a letter dated September 11, to remove the company's CEO & MD Punit Goenka and two other directors. Meanwhile, after paring its initial gains, shares of Zee Entertainment closed 3.5% higher.

Jindal Stainless’ Q2 profit rises multifold

India’s largest stainless steel producer’s consolidated net profit rose over 400% year-on-year ₹411 crore. In the same period, the revenue also rose 51% to ₹5,026 crore. 

The management said that all major end-use segments grew in the quarter but the sales from the auto segment remained weak. However, it also added that the upward rally in prices of input materials continued unabated throughout the second quarter. Meanwhile, the shares of the company rose 14% yesterday after the robust quarterly performance.

Dwarikesh gets a boost from distillery biz 

The Uttar Pradesh-based sugar producer's net profit rose 123% year-on-year to ₹39 crore. In the same period, the company's revenue went up by 21% to ₹506 crore on the back of a sharp rise in revenues from the distillery segment. 

The company’s profits were also boosted due to the distillery segment where the EBITDA margins rose from 33.7% last to 42.9% in the September quarter. The company’s management has said that execution of the 175 KLPD distillery project is on track. Meanwhile, shares of Dwarikesh Sugar closed 1.1% lower yesterday. However, the strong results had a positive rub-off on other sugar stocks Balrampur chini (+11.2%), Triveni Engineering (+6.9%) and Shree Renuka (+4.8%).

Sectoral indices (October 26)

Global markets (at 8:00 am)

Fact of the day

In the 1960s, Ford was on the verge of buying Ferrari. However, the deal was called off by Enzo Ferrari over a clause that Ford will make decisions for Ferrari’s racing team.

Source: Discovery

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