Morning Update for 12 April 2022

Indices at previous closing

Nifty50: 17,674 ▼109 (-0.6%)

Sensex: 58,964 ▼482 (-0.8%)

Nifty Bank: 37,613 ▼138 (-0.3%)

For more updates on F&O, click here.

Air traffic still behind pre-pandemic levels

According to a report by the rating agency ICRA, domestic air passenger traffic is estimated to have grown by 59% in FY22 year-on-year to 84 million. However, this is still 40% less than the pre-pandemic levels. The report mentioned that the price of aviation turbine fuel, which makes up almost half the cost for airlines, will be a near-term challenge and an important determinant of profitability for the sector.

Airline stocks have been under pressure since the start of the year. Shares of Spicejet have dropped 13.5% since 1 January, while shares of Indigo are down 1.3% in the same period.

Delta Corp profit drops due to Omicron and state elections

Hotels and casinos operator Delta Corp's consolidated net profit fell 17% to ₹48 crore in Q4 of FY22 year-on-year (YoY), on the back of disruptions in its business owing to the Omicron wave and Goa elections. The company said that it witnessed a substantial reduction in visitations during the January-February period due to the Omicron wave. 

Meanwhile, the company’s revenue rose marginally to ₹218 crore in Q4 from ₹211 crore in the year-ago period. The management is optimistic about its performance in the current financial year and expects a "full-fledged performance."

Sandur Manganese surges after capex plan

The board of Sandur Manganese approved a ₹18,000 crore rights issue and a capex plan of ₹900-₹950 crore through borrowings and internal accruals. The stock jumped 20%, with a four-fold rise in trading volumes to 86,000 shares as compared to an average of 20,000 shares traded in the past two weeks.

Further, the company has also entered into a power-purchase agreement, share subscription and share holding agreement with Renew Green Energy Solutions Private Limited for supply of solar and wind power. In the past three months, the stock has zoomed 86%.

Sectoral indices (April 11)

Global markets (at 7:45 AM today)

Fact of the day

iPhone 13 will now be made in India as Apple starts operations in the new Foxconn plant in Tamil Nadu.

Source: Financial Express

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Investment in securities markets is 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.