Morning Update for 12 July 2021

Indices at previous closing

Nifty50: 15,689 ▼ -38 (-0.2%)
Sensex: 52,386 ▼ -182 (-0.3%)
Nifty Bank: 35,071 ▼-202 (-0.5%)

In the news

DMart Q1 profit misses street estimates

• Mumbai-based retail major Avenue Supermarts, which owns and operates DMart stores, reported a 132% year-on-year jump in net profit at ₹115 crore for the June quarter. However, on a quarter-on-quarter basis it was a sharp drop of 74% and further it missed street estimates of ₹159 crore. 
• Further, its revenues declined by 31% QoQ due to the impact of the second wave on store operations. Meanwhile, it has opened 22 new stores after the June quarter of last year. Shares of Avenue Supermarts have been flattish so far this month with a rise of 1%. 

All eyes on key data and Zomato IPO

• After an indecisive last week, the street will be monitoring key earnings announcements and data releases this week. The Index of Industrial Production is expected to reveal the pace of recovery in the manufacturing sector. Similarly, the retail and wholesale inflation numbers will reveal the extent of the threat posed by rising prices. 
• Also, large-cap companies such as Infosys, Wipro and HDFC AMC will be announcing their Q1 results. Besides this, online food delivery giant Zomato’s initial public offering (IPO) will open for subscription between July 14–16. You can apply for IPOs on Upstox.

Niti Aayog expects double-digit growth in FY22

• India is expected to register double-digit growth in FY22, according to the Vice Chairman of the government policy think tank Niti Aayog. He said that sectors such as steel, cement and real estate are already seeing significant investments.
• He further added that the disinvestment climate looks better, with economic activities likely to gather momentum in the second half of the current fiscal. The government has set a target of ₹1.75 lakh crore from disinvestment of public sector companies in FY22.

Key data releases this week

Monday: Consumer Price Inflation, Industrial Production
Wednesday: Wholesale Price Inflation
Thursday: Trade Balance

Sectoral indices (July 9)

Global markets (at 8:00 am)

Fact of the day 

Only 13 stocks from the current Nifty50 pack have been part of the index since its inception in 1996.

Source: Financial Express

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