Morning Update for 12 January 2022

Indices at previous closing

Nifty50: 18,055 ▲52 (+0.2%)
Sensex: 60,616 ▲221 (+0.3%)
Nifty Bank: 38,442 ▲94 (+0.2%)

For more updates on F&O, click here.

Paytm shares at all-time low

Shares of the leading fintech player fell 3.5% and closed at their all time low on Tuesday. Paytm’s shares were under pressure despite the strong Q3 update. The number of loan disbursal rose 401% year-on-year to 44 lakh. 

In the December quarter, the user engagement also rose 37% YoY with 6 crore average monthly transacting users. However, according to reports, one of the anchor investors HDFC AMC has trimmed its stake in the company.

JSW Steel ramps up production 

In the December quarter, the steel maker’s combined crude steel volume rose 28% year-on-year to 5.3 million tonnes. On a sequential basis too, the volumes rose 6%. 

The management said that its capacity utilisation in Q3FY22 stood at 94%. However, it’s acquisition Bhushan Power & Steel’s production was lower mainly due to the shutdown of a plant for 10 days for upgrading automation. Meanwhile, shares of JSW Steel were down 3.4% on Tuesday.

Companies to face margin pressure in Q3

On the back of price hikes, Indian companies are likely to report a 16-17% growth in revenue in their December quarter, according to a report by Crisil. However, out of 40 sectors, 27 are likely to witness margin compression due to rise in commodity prices. 

As a result, for the first time in 12 quarters, the operating margin is expected to drop by 1-2% year-on-year, adds the report. This is due to rising input cost and inability to fully pass it on to the end consumer. Meanwhile, the Nifty50 was up 0.2% yesterday.

Sectoral indices (January 11)

Global markets (at 8:00 am today)

Fact of the day

Produced first in 1932, the RE Bullet 350, is today the longest running motorcycle to be in continuous production.

Source: Royal Enfield

Yay 👍 or Nay 👎?
We'd love your thoughts on this morning update.

If you haven't already, open your Upstox account to get IPO-ready today! Click here to sign up.

To catch our latest educational videos, join our Telegram channel here.

Disclosures and Disclaimer

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.