Morning Update for 1 March 2021

Previous close (26 February 2021)

Nifty50: 14,529 ▼ 568 (-3.7%)

Sensex: 49,099 ▼ 1,939 (-3.8%)

Nifty Bank: 34,803 ▼ 1,745 (-4.7%)

In the news

JLR announces large write-off in Q4

• The Tata-owned luxury carmaker will take a one-time write-off of £1.5 billion (~₹15,000 crore) as part of the company’s restructuring plan. The write-off has two parts: a £1 billion non-cash component accounting for higher spending and on projects that couldn’t be completed, and a restructuring cost of £0.5 billion.  
• Previously, the company announced a major write-off of about £3.1 billion back in FY19 due to Brexit uncertainties and a slowdown in China. Meanwhile, the Tata Motors stock has risen about 23% in February.

Home sales spike in Mumbai

• According to real estate body Credai-MCHI, home sales in the Mumbai region grew 33% YoY in January, owing to increased demand driven by the stamp duty cut and low interest rates. Further, the average property value rose 14% to ₹66 lakh.
• The Nifty Real Estate index has gained 14% and shares of Mumbai-based realtors have been upbeat in the last month - Godrej Properties (+22%), Sunteck (+8%) and Oberoi Realty (+3%). 

GHCL to expand textile capacity

• Chemicals and textiles maker Gujarat Heavy Chemicals Limited aims to invest ₹150-200 crore to expand its textile capacity in Tamil Nadu, reports suggest. The investment will mainly go into its yarn production facilities near Madurai and Trichy. 
• The company claims healthy performance in its textile business in Q3 and Q4, and expects to continue its momentum into the next fiscal. However, import duty on cotton is likely to affect growth. The stock rose about 5% last month.

Commodities fall on stronger dollar

• Commodities fell sharply on Friday, owing to a rise in the dollar due to inflation concerns. The fall in returns was the sharpest since April 2020 as a strengthening dollar reduced the demand for raw materials.
• International crude oil prices corrected by 3% on Friday. Similarly, copper prices slipped from record highs and were down 4%. Gold and silver, too, were down over 2% each.

Events of the week

• Monday: Manufacturing PMI (India), Manufacturing PMI (US)
• Wednesday: Services PMI (India), Crude oil inventories, Services PMI (US)
• Thursday: Initial jobless claims (US)

Sectoral indices (Previous closing)

Global markets (at 8:30 am today)

Fact of the day

Sports car maker Lamborghini originally made farm tractors.
Source: Motor1

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