Market recap for 7 April 2021

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Nifty50: 14,819 ▲ 135 (+0.9%)
Sensex: 49,661 ▲ 460 (+0.9%)


The markets stuttered a bit at the start but then witnessed buying interest throughout the day. Of the Nifty50 constituents, 43 closed in the positive, which suggests that buying was seen across the board.
All the sectoral indices closed in the green, with Nifty PSU Bank (+1.8%) and Nifty Auto (+1.6%) leading the pack.

Top gainers Today's change
JSW Steel ▲ 5.3%
Wipro ▲ 2.3%
SBI ▲ 2.1%

 

Top losers Today's change
Adani Ports ▼ 2.7%
Tata Consumer ▼ 1.4%
UPL ▼ 1.2%

Here are the top stories of the day.  

Titan reports strong revenue growth in Q4

  • The jewellery and watch retailer reported a 60% YoY revenue growth in Q4FY21, owing to a low base, improved demand and a dip in gold prices.
  • The company said that the jewellery division has emerged very strongly from the crisis and witnessed strong growth in the quarter. At the same time the watches & wearables as well as the eyewear divisions, have also made very good progress on recovery.
  • However, the stock was down 0.5% today despite an overall bullish market

 

IDFC First Bank raises funds via QIP

  • Shares of IDFC First Bank rose 4.1% today as the bank announced that it has raised ₹3,000 crore through a QIP at a price of ₹57.35 per share. 
  • Further, the bank has also shown improvement in its Q4 performance. Its total customer deposits have increased by 43% YoY and the CASA ratio (ratio of current account and savings account deposits to total deposits) has improved to 52% from 32% last year. A higher CASA ratio is better for a bank as current accounts and savings accounts attract lower interest rates as compared to other deposits.

 

Rajesh Exports bags designer jewellery deal

  • The Bengaluru-based gold retailer has received an order worth ₹745 crore from an unspecified German client. The order is likely to be completed by July 2021. 
  • The stock was down 0.3% today and has been consolidating since July 2020. Even in 2021 so far, it is down about 2%. 

 

Barbeque Nation surges after weak listing

  • Shares of the casual dining restaurant chain listed at a 2% discount to its issue price of ₹500. However, after the initial selling pressure, the stock shot up and hit its 20% upper circuit
  • The stock’s movement suggests that investors have brushed aside concerns arising from regional lockdowns. As per reports, the majority of its revenues come from in-house dining, whereas the takeaway business contributes only about 15% to its revenues.

 

Closing bell

The RBI, in its monetary policy meet today, maintained its accommodative stance, which augurs well for the markets. While it was largely expected that RBI would keep interest rates unchanged, the markets reacted positively. Amidst the bullish sentiments, the markets ignored the weak services PMI data, which showed a dip as compared to the last month. Since mid-March, the Nifty50 has been range-bound and broadly hovering between 14,250 and 15,000. A break on either side could give the market a clear direction. 


Good to know

What is PAT?
Profit after tax (PAT) is the net income of a business after deducting all the expenses and taxes from the revenue. The expenses include non-cash expenses such as depreciation. PAT is a key measure of a company's profitability, since it takes into account both operating income and non-operating items.


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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.

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