Morning Update for 14 May 2021

Indices at previous closing

Nifty50: 14,696 ▼-154(-1.0%)
Sensex: 48,690 ▼ -471 (-0.9%)
Nifty Bank: 32,452 ▼ -419 (-1.2%)

In the news

Asian Paints Q4 beats estimates

• For Q4, the paints major clocked ₹6,651 crore in revenue from operations, 43% higher YoY. For the period, profit rose 81% to ₹870 crore.
• In terms of business, while rural markets continued to remain strong, tier-1 cities gained momentum. The company mentioned that the uptrend continues on the raw material price front. However, it has taken a 2.8% price hike in May 2021. The share closed flat on Wednesday but is down about 7% since the beginning of 2021. 

UPL Q4 boosted by Latin American business

• The Mumbai-headquartered agrochemicals maker reported a 15% YoY rise in its Q4 revenues at ₹12,797 crore. The figure was estimated at ₹12,016 crore. Meanwhile, net profit at ₹1,065 crore, was up 72%, versus the estimates pegged at 1077 crore. 
• In Q4, revenues from its largest market—Latin America—grew at 40% and supported the overall growth. Further, the company also pared its net debt by 14% to ₹18,922 crore. The stock closed 0.8% higher on Wednesday and has risen about 48% so far in 2021.

Dwarikesh Sugar posts steady growth

• The Uttar Pradesh-based sugar maker’s Q4 revenues from operations stood at ₹600 crore, up 30% YoY. Its net profits grew relatively slower at 9% to ₹48 crore. Its shares fell 3% on Wednesday.
• The highlight of the results was the distillery segment (ethanol and spirits), which nearly doubled in revenues. Further, its EBITDA margins increased sharply by 860bps to 41.2%. Shares of the company have risen 28% so far in this month.

PLI scheme approved for battery storage

• The government has announced a performance-linked incentive scheme worth ₹18,100 crore for the domestic manufacturing of advanced chemistry batteries (ACBs). The scheme is expected to offset imports by around ₹20,000 crore.
• In response to the incentive scheme, the centre estimates foreign and domestic direct investments of around ₹45,000 crore in ACBs. Amararaja and HBL Power Systems have risen 3% and 17% so far this week.

Events/data releases of the week

• Friday: WPI Inflation (India), Retail sales (US)

Sectoral indices (12 May)

Global markets (at 8:00 am)

Fact of the day

In the 18th century, deer (or buck) skin was a common medium of exchange, with the highest quality skins equaling one buck. The U.S. dollar was introduced in 1792, but the buck term stayed around as slang for the dollar.
Source: Huffpost

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