Nifty50: 15,115 ▲ 191 (+1.2%)
Sensex: 51,348 ▲ 617 (+1.2%)
The Nifty50 opened with a gap-up, definitively crossing the 15,000, and kept nudging up nearly throughout the day. Among its constituents, 40 closed with gains.
In the Nifty sectoral indices, the Metal and Auto were the top gainers, rising about 3.1% each. Meanwhile, PSU Bank (-1.0%) and FMCG (-0.5%) receded the most.
| Top gainers | Today's change |
| M&M | ▲ 7.3% |
| Tata Motors | ▲ 6.4% |
| Hindalco | ▲ 6.1% |
| Top losers | Today's change |
| Britannia | ▼ 1.8% |
| HUL | ▼ 1.5% |
| Kotak Mahindra | ▼ 1.3% |
Here are the top stories of the day.
Gujarat Gas soars on impressive Q3
- The Ahmedabad-based gas distributor nearly doubled its Q3 profits year-on-year to ₹392 crore. Revenues rose about 13% to ₹2,885 crore supported by a 23% YoY growth in gas sales volumes.
- Improvement in sales, lower gas cost and reduction in finance costs led to the surge in profitability. Following the result, the stock closed with gains of nearly 14%, supported by strong volumes.
Affle gains after strong quarter
- The mobile-marketing services provider reported a 59% surge in revenue from operations in Q3 at ₹150 crore. Meanwhile, profit after tax grew 49% to about ₹30 crore.
- While the average cost per converted user (CPCU) remained broadly constant over the year, it saw a 50% YoY jump in the number of converted users to 30 million users. The stock gained nearly 3% today.
Mrs Bectors posts robust profit growth
- The company that recently went public has reported an 86% YoY growth in its profit after tax to ₹21 crore during Q3. Its revenues grew 11% YoY to ₹226 crore.
- Its bread-bakery and biscuit exports grew 38% and 21% YoY, respectively, helping overall revenue growth. The institutional bakery sales fell 32% YoY due to Covid-19 restrictions. However, sales are picking up as restaurants have opened after the relaxation of restrictions. The stock closed almost flat (-0.2%) today.
Crude oil continues to climb
- The price of crude oil is on a rise for the fourth month in a row. The price rise is supported by a unique situation wherein the demand outlook is improving as vaccine rollout gathers pace across the world.
- The supply, on the other hand, is under control as the OPEC+ nations continue to maintain output cuts. Crude oil has risen over 10% this month.
Closing bell
Today, the Indian indices rose for the sixth straight session, supported by favourable cues from global equity markets. Last week saw two major events—Union Budget and RBI policy meet.
The next event to look forward to will be the consumer inflation data, which is expected on Friday. The street estimates it at around 4.40% (down from 4.59% in the previous reading). In recent months, the markets have had a number of rallies that ran for several days, followed by sharp corrections. Traders need to watch for such patterns.
Good to know
What is impairment of an asset?
Sometimes, the value of an asset on the company’s balance sheet is more than its fair value in an open marketplace. As a result, the company needs to adjust the value of the asset in its balance sheet. This is referred to as an impairment, which reflects as a loss in the income statement. The impairment could be due to obsolescence, physical damage or a decrease in the overall performance of an asset.
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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.