Nifty50: 14,895 ▲ 105 (+0.7%)
Sensex: 50,614 ▲ 358 (+0.7%)
The markets opened on a weak note, but picked up pace and closed in the green. In the Nifty50 pack, 28 stocks ended with gains.
Among the Nifty sectoral indices, the PSU Bank (+5.8%) and FMCG (+2.4%) closed the strongest, while IT (-0.4%) was the sole loser.
| Top gainers | Today's change |
| SBI | ▲ 6.5% |
| ITC | ▲ 6.1% |
| Bajaj Finance | ▲ 4.9% |
| Top losers | Today's change |
| Asian Paints | ▼ 1.9% |
| UPL | ▼ 1.6% |
| Cipla | ▼ 1.6% |
Here are the top stories of the day.
SBI’s Q3 profits beat street estimates
- The country’s largest public-sector lender reported a net profit of ₹5,196 crore, down 7% YoY. However, the results beat the estimated earnings of ₹4,850 crore and also grew 14% sequentially.
- The bank’s asset quality improved, as the net NPAs reduced to 1.23% from 2.65% in Q3 of the last fiscal. The bank expects double-digit credit growth by Q2 of FY22. The stock led the Nifty50 gainers, climbing 6.5% today. It’s about 5% short of its lifetime high.
P&G Hygiene soars on strong Q2 growth
- The FMCG major reported an 84% YoY jump in net profit to ₹250 crore for the December quarter. The company, which follows the July-June financial year, had registered a 19% YoY rise in net sales to ₹1,018 crore.
- Its feminine care and healthcare business witnessed double-digit growth in the quarter. The stock closed with gains of nearly 8% today.
Dr Reddy’s in spotlight on vaccine news
- The peer-reviewed Phase-3 trial results of Russia’s Sputnik V vaccine showed it was 91.6% effective against Covid-19, reports suggest. This bodes well for Dr Reddy’s, which has tied-up with the Russian Direct Investment Fund to manufacture and distribute the vaccine in India.
- Experts say the probability of results showing high efficacy in Indian trials has increased with this development. The Indian Phase-3 trial is currently being conducted on 1,500 volunteers, and the data is expected by March. The stock has gained about 1.4% this week.
Apollo Tyres’ Q3 profit surges on replacement demand
- India’s third-largest tyre company by market capitalisation posted a strong 155% YoY jump in net profit to ₹443 crore. Its revenues grew 17% YoY to ₹5,153 crore.
- The growth was driven by both replacement (84% of revenues) and OEM segments in India. It also hiked prices across segments. The company was able to pare debt from ₹6,000 crore in March 2020 to ₹3,800 crore in December 2020. The stock rose 6.8% today, supported by a rise in volumes.
Closing bell
Despite weakness in major Asian indices, Indian markets continued their upward rally. The December quarter results of most companies have been encouraging with some posting results above street estimates. Despite moderate inflation, RBI is expected to maintain an accommodative policy stance and retain policy rate at 4%. Meanwhile, crude oil prices have risen nearly 7% this week, over and above the 7.5% rise seen in January. Rising crude prices do not augur well for India, as it impacts commodity prices, inflation, US dollar rate and finally the import bill.
Good to know
What is a cyclical stock?
A cyclical stock is one whose performance follows the overall economy, rising when it grows and falling during declines. Cyclical stocks usually belong to industries dependent on discretionary spendings such as travel, entertainment, automotive manufacturing, construction, and luxury retail. Although volatile, trades in cyclical stocks can beat market returns if timed right.
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Investment in securities markets are 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.