Morning update for 13th November 2020

Indices at 10:30 am

▲ Nifty50 12,706 (+0.13%)

▲ Sensex 43,418 (+0.14%)

▲ Nifty Midcap 100 18,191 (+0.05%)

▲ Nifty Smallcap 100 6,032 (+0.63%)

In the news

Inflation

• For October, India’s retail inflation—represented by the Consumer Price Index (CPI)—jumped to 7.61%, the highest in six years. It was 7.3% in September.
• The key factor behind the rise is the spike in food inflation, which stood at 11.07%. 

Eicher Motors

• The Royal Enfield motorcycle maker’s Q2 consolidated net profit dropped 40% YoY to ₹343 crore.
• During the quarter, motorcycle sales volumes declined 9% and revenues dropped by 3% to ₹2,134 crore.
• The company is seeing sales recovery on a month-on-month basis. It’s booking numbers are now at pre-Covid levels. 
• The stock is up 4.5% today and is a top gainer in the auto pack.

Grasim Industries

• Grasim’s Q2 standalone revenues were down 28.3% YoY to ₹3,438.2 crore. The decline in revenues impacted EBITDA margins, which fell from 13.7% to 11.6%, even as the company was able to reduce its power and fuel costs and other expenses.  
• Net profits were down 31.6% to ₹360.2 crore.
• The stock is up 0.9% today. 

Sun TV

• Q2 consolidated revenues down 4.4% YoY to ₹768.7 crore. Revenues were mainly supported by a 14% rise in subscription revenues at ₹427 crore.
• The company was able to increase its EBITDA margin to 65.3% versus 59.6% in the same period last year. However, higher taxes pulled down the net profit, which dipped 9.1% to ₹335 crore.
• The stock is down 3.0% today.

Global markets

• Key Asian markets are trading weak today. The Japanese Nikkei 225 (-0.69%), China’s SSE Composite (-0.75%) and Hong Kong’s Hang Seng Index (-0.33%) are down. 

Events today

Earnings expected from ONGC and Tata Steel

Fact of the day

Bubble wrap was never intended for its current use i.e. packaging; its co-creators Marc Chavannes and Al Fielding initially developed the material when they attempted to create a textured plastic wallpaper in 1957.

Source: Smithsonian Magazine

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Investment 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.