Morning Update for 10 January 2022

Indices at previous closing

Nifty50: 17,812 ▲66 (+0.3%)
Sensex: 59,744 ▲142 (+0.2%)
Nifty Bank: 37,739 ▲249 (+0.6%)

For more updates on F&O, click here.

DMart posts strong Q3 results 

In the December quarter, the retail chain reported a 24% year-on-year rise in its standalone net profit to ₹586 crore. This sharp growth in the bottomline was aided by a 22% increase in the revenue to ₹9,065 crore. 

The management highlighted that inflation and lesser opportunities to go out are impacting overall sales mix. It saw relatively weaker sales from high margin merchandise and apparel segments.  

Meanwhile, shares of DMart were up 0.8% on Friday but the results were announced on the weekend.

IT firms likely to post robust Q3

In the coming week, five IT majors - Infosys, TCS, Wipro, Mindtree and HCL Tech - are set to announce their December quarter results. Despite it being a seasonally weak quarter, analysts expect the IT companies to deliver 3-5% revenue growth on a sequential basis.  

Strong deal wins, greater adoption of cloud models and growth across verticals is expected to drive the topline. Experts also believe that there could be an upward revision of guidance by these companies.

Spending revival on cards  

According to government estimates, private consumption in India is expected to grow at the rate of 6.9% in FY22 due to pent-up demand. India’s GDP is also likely to grow at 9.2%, marginally lower than the RBI’s estimate of 9.5%. 

Experts believe that strong demand has been witnessed in some pockets but overall consumption needs some push. The rapid spread of the new virus variant and its impact on business activities remains a concern. Meanwhile, the Nifty50 Index was up 2.6% last week.

Sectoral indices (January 7)

Global markets (at 8:00 am today)

Fact of the day

In Japan, the global beverage giant Coca-Cola actually sells flavoured soup under the brand name Go:Good.

Source: Japan Today

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