Morning Update for 25 January 2022

Indices at previous closing

Nifty50: 17,149 ▼468 (-2.6%)

Sensex: 57,491 ▼1,545 (-2.6%)

Nifty Bank: 36,947 ▼626 (-1.6%)

For more updates on F&O, click here.

SBI Cards' Q3 profit surges 

In the December quarter, the cards and payment services company’s profit rose sharply by 84% to ₹386 crore. The sharp growth in the bottom line was supported by a rise in total spends and lower provisioning for bad loans. 

In the same period, the revenue rose 24% to ₹3,140 crore led by higher income from fees and services. The asset quality also improved with the gross non-performing assets falling to 2.4% of the loan book from 4.5% in Q3FY21. Meanwhile, shares of SBI Cards were down around 4% but the results were announced after the market hours.

HDFC AMC’s profit shrinks  

In Q3FY22, India’s largest mutual fund’s net profit fell 3% year-on-year to ₹359 crore. The rise in expenses due to increase in new fund offerings and fall in other income dented the profit. 

However, the company’s revenue rose 14% to ₹549 crore. Its assets under management also rose 7% to ₹4 lakh crore. Meanwhile, shares of HDFC AMC were down 4.9% yesterday.

Ramco Cements' subdued Q3 performance 

The South India-based cement maker reported a net profit of ₹83 crore, down 59% year-on-year. The profitability was dented by a sharp increase in fuel prices and fall in cement prices. 

However, the revenue rose 16% to ₹1,556 crore. The management said that it could not pass on the increase in logistic costs to its customers in the wake of weak demand. Shares of Ramco Cements were down around 5% but the results were declared after the market hours.

Swiggy becomes decacorn 

The food and grocery delivery platform has said that it raised $700 million from investors at a valuation of $10.7 billion recently. It became the fourth decacorn in India. 

Also, this comes at a time when technology-led stocks including the recently listed ones are facing intense selling pressure. Before this fund-rasing round, Swiggy had raised $1.2 billion in July 2021 at a valuation of $5.5 Billion.

Sectoral indices (January 24)

Global markets (at 8:00 am today)

Fact of the day

The Walmart-backed PhonePe was a leader on the UPI platform with ₹3.9 lakh crore transaction in 2021.

Source: Inc42

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