Bulls charge ahead

Nifty50: 16,529 ▲164 (+1.0%)
Sensex: 54,843 ▲593 (+1.0%)

The benchmark indices opened with a gap-up and marched upwards throughout the day. Market breadth was positive too, with 30 of the Nifty50 stocks closing in the green. 

Among the sectoral indices, Nifty IT (+1.3%) and Nifty FMCG (+0.8%) led the charge, while the Media and Realty indices were down 0.9% each.

Here are the top stories of the day.

Page stumbles on muted profit growth

Page Industries, manufacturer and retailer of Jockey innerwear in India, reported 76% YoY growth in revenue at ₹505 crore, mainly due to the low-base effect. However, revenue is yet to catch up with the pre-pandemic levels, and is still 40% lower than the revenue of the June quarter of 2019. 

Meanwhile, the company’s profit was muted at ₹11 crore on account of under absorption of employee costs, selling expenses and corporate overheads. Following the weak quarterly results, the stock closed 4% lower.

GR Infra triples profits in Q1

The recently listed road construction company has delivered strong Q1FY22 results. Revenue at ₹2,133 crore was up 76% YoY, while profit after tax nearly tripled to ₹203 crore. 

As of 30 June 2021, the company claims to have an order book worth ₹15,058 crore, which is over 2 times its FY21 revenues. The stock closed 0.6% higher today.

Wockhardt bags Sputnik deal

Mumbai-based Wockhardt has entered an agreement with the sovereign wealth fund of the Russian Federation (RDIF) to manufacture and supply the Sputnik V and Sputnik Light (single dose) vaccines in India. The RDIF funded the development of the Sputnik V vaccine.

Under the agreement, the pharma and hospital major will produce up to 620 million doses of the Sputnik V and Sputnik Light vaccines. The stock closed 4.6% higher today.

Closing bell

While the week started on a softer note, the market resumed its uptrend and rose for the second week in a row. IT and banking stocks were top sectoral gainers. Overall, the cues from most fronts were positive. Inflation cooled off more than the market expected, and the RBI’s pro-growth stance boosted investor confidence. Further, the US market and most international indices have had a positive week so far. With the June quarter result season now behind us, markets are expected to increasingly track global markets, commodity price movements and domestic macro indicators.

Good to know

What is a pre-IPO fund?

A pre-IPO fund is an investment instrument created by asset management companies (AMC) to invest in companies that are likely to launch their public issues soon. Such a fund allows Indian  investors such as institutions and HNIs access to potentially high-growth companies before they list on the stock market. Pre-IPO investment is otherwise typically accessible only to institutional investors. Such funds may help retail investors realise significant value creation on listing of high-growth companies.

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Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.