Morning update for 12 February 2021

Previous closing (11 February 2021)

Nifty50: 15,173 ▲ 66 (+0.4%)

Sensex: 51,531 ▲ 222 (+0.4%)

Nifty Bank: 35,752 ▼ 31 (-0.0%)

In the news

ITC's profit declines in Q3

• FMCG conglomerate ITC reported a 11% YoY decline in Q3 consolidated net profit to ₹3,587 crore despite a 6% YoY rise in revenues to ₹14,124 crore. 
• All its business segments except FMCG-others witnessed a contraction in profits on a year-on-year basis. FMCG-others, which includes key brands such as Aashirvaad, Sunfeast and Savlon, saw a 92% YoY rise in PBIT supported by a better product mix and portfolio premiumisation. 
• The stock has corrected 3% this week. However, it has gained 11% this month. 

Ashok Leyland extends market share in Q3

• The Hinduja Group-owned commercial vehicle (CV) makerreported20% YoY rise in revenues to ₹4,814 crore, supported by a bounce back in CV volumes.  
• It suffered a net loss of ₹19 crore mainly due to a one-time cost of ₹85 crore for its voluntary retirement scheme (VRS). The stock has gained an impressive 21% in February alone.  

ACC announces bumper profit and dividend

• The cement major reported a 73% YoY surge in consolidated net profit to ₹472 crore. Meanwhile, revenue rose by a comparatively modest 2% to ₹4.1 crore during the same period. 
• The rise in profit was driven by a superior product mix and cost efficiencies. Along with the strong results, the company also announced a dividend of ₹14 per share. The stock closed 0.5% higher yesterday, and has gained about 11% this month. 

Airlines get boost with airfare limit hike

• Indian airlines have a reason to cheer. The government has raised the limits on domestic airfares by 10-30% for various flight durations. The new limits would be in force upto 31 March until further orders. The fare limits were set in May 2020. 
• However, the 80% cap on airline capacity still remains. Meanwhile, shares of both Indigo and Spicejet are up 5% this month. 

Events of the week

• Friday: Consumer Inflation, IIP (India)

Sectoral indices (Previous closing)

Global markets (at 8:30 am today)

Fact of the day

The average Starbucks customer goes to a store 6 times a month, but a loyal one visits 16 times a month!
Source: Eatthis

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