Morning Update for 9 May 2022

Indices at previous closing

Nifty50: 16,411 ▼ 271 (-1.6%)

Sensex: 54,835 ▼ 866 (-1.5%)

Nifty Bank: 34,591 ▼ 641 (-1.8%)

For more updates on F&O, click here.

CV industry to pick up pace

Tata Motors expects double-digit growth in the commercial-vehicle industry this fiscal year. This comes on the back of favourable demand due to a rise in economic activity. However, high fuel prices and increased interest rates on vehicle loans are some deterrents.

The management said that this segment gained speed in 2018-19 with volumes over 10 lakh units, and saw a downfall in the last two years due to the pandemic. But the industry could reach the previous peak soon due to the demand and higher payload.

L&T Infotech + Mindtree = LTIMindtree

IT services companies L&T Infotech (LTI) and Mindtree have agreed to merge. Both companies are subsidiaries of Engineering company L&T. The merged company will be named LTIMindtree, and will be the country's fifth-most valuable software firm.

As part of the deal, shareholders of Mindtree will get 73 shares of LTI for every 100 shares they hold. Since the start of the financial year, LTI’s shares have fallen 25%, while Mindtree shares dropped 22%.

Go Fashion reports stellar earnings

Women's apparel brand Go Fashion reported a 73% year-on-year rise in Q4 net profit to ₹12 crore. The improved performance was driven by increased cost efficiencies, and a 29% rise in revenue to ₹116 crore in the same period.

The sales volumes grew by 11% in the quarter. The company has added 54 stores in FY22, taking its tally past the 500-store mark.

Sectoral indices (May 9)

Global markets (at 7:30 AM today)

Fact of the day

Asian Games, which were scheduled to be held in September in China, have been postponed until 2023 due to the country’s Covid situation.

Source: Hindustan Times

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