Morning Update for 11 June 2021

Indices at previous closing

Nifty50: 15,737 ▲+102 (+0.6%)
Sensex:  52,300 ▲ +358 (+0.6%)
Nifty Bank: 35,131 ▲ +330 (+0.9%)

In the news

US consumer inflation rises

• The US cost of living jumped to 5.0% in May, against 4.2% in April, as the effects of the pandemic faded and the domestic demand picked up. The number also looks higher because of low-base of last year. 
• However, the figure is higher than the street estimate of 4.7% and stood highest in 13 years. At present, it is widely believed that the rise in inflation is mainly due to the temporary shortages which are expected to subside as the supply catches up to demand. 

Cera Sanitaryware registers strong growth

• The sanitaryware maker reported a 47% jump in its standalone operating revenues to ₹431 crore for the March quarter. During the same period, net profit rose 11.7% to ₹43 crore. 
• The company said profitability was impacted due to the lost production of some high-value products. However, it has managed to stabilise production at all its plants in FY22. It expects demand to improve in the coming quarters. The stock surged 8% intraday after the results were announced, but it witnessed profit booking later, closing 4% lower.

Century Ply’s revenues surge

• Kolkata-based plywood maker reported its highest-ever quarterly revenues in Q4 at ₹738 crore, up 41% YoY. It witnessed all-round growth across product categories as demand for its products picked up.
• Its profits more than doubled to ₹83 crore during the quarter. The company is now virtually debt-free and plans to utilise internal accruals for its capex program. It plans to invest around ₹275 crore to boost capacities at its various plants. Its stock rose 4.9% yesterday. 

OPEC sees strong oil recovery 

• The Organization of the Petroleum Exporting Countries (OPEC) in its monthly report reiterated that global oil demand will strongly recover in 2021. This recovery in demand will be led by China and the United States, said the report. 
• In April, OPEC and its allies said that they will slowly ease the oil production cuts this year as the global economy rebounds. With crude oil prices on the rise, state-owned ONGC and Oil India both gained 15% since May.

Sectoral indices (11 June)

Global markets (at 8:00 am)

Key data release today 

• Friday: IIP (India)

Fact of the day options 

Warner Music reportedly collected more than $50 million in licensing fees over 25 years for the Happy Birthday song. However, in 2016, a US court ruled that the copyright was invalid and that the song is in the public domain.

Source: Rolling Stone

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Investments 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.