Morning Update for 17 December 2021

Indices at previous closing

Nifty50: 17,248 ▲+27 (+0.1%)
Sensex: 57,901 ▲+113 (+0.2%)
Nifty Bank: 36,548 ▼-240 (-0.6%)

For more updates on F&O, click here.

Accenture beats estimates in Q1

The global IT giant reported a 27% year-on-year rise in its revenue to $14.9 billion in its first quarter. This was above the analyst estimate of $14.1 billion. The sharp growth in the topline was driven by demand for cloud and security services. 

In the same period, the company’s bottom line also rose 20% to ₹1.8 billion. Accenture also upgraded its revenue growth estimate to 19%-22% from 12%-15% for fiscal. It’s important to note here that Accenture follows the September to August fiscal year. Meanwhile, the Nifty IT index was up 1.1% yesterday.

Hospitality industry weighs virus effect

The management of Lemon Tree Hotels has said that it hasn’t witnessed significant cancellations due to the new virus variant. It also expects the industry to bounce back and wants to capture 25% of the mid-market share in the next five years. 

However,  the management of Indian Hotels sounded more cautious, saying that the cancellations have increased due to the new virus variant. Despite this uncertainty, it still expects a decent December quarter. Shares of Lemon Tree and Indian Hotels were down 2% and 2.2% respectively.

Gold rebounds after Fed meet

The prices of yellow metal rebounded on Thursday as the Fed is marginally more hawkish than what the market was expecting, according to the analysts. 

Non-interest paying assets like gold become less attractive to investors in a rising interest rate scenario. However, Fed officials indicated that they may take three hikes next year. Analysts believe that it’s a decent environment for gold as some traders were positioned for something more hawkish from the US central bank.

Sectoral indices (December 16)

Global markets (at 8:00 am today)

Fact of the day

On its first day of listing, US-based EV maker Rivian was valued at $86 billion but it has sold 156 trucks as of October 2021.

Source: The New York Times

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