Morning Update for 14 October, 2021

Indices at previous closing

Nifty50: 18,161 ▲+169 (0.9%)
Sensex: 60,737 ▲+452 (0.7%)
Nifty Bank: 38,635 ▲+114 (0.3%)

For more updates on F&O, click here.

In the news

Infosys, Wipro beat street estimates

Infosys, the country's second-largest IT services company, reported a 11.9% year-on-year increase in the September quarter net profit at ₹5,421 crore. The company’s revenue rose 20% to ₹29,602 crore. On the  back of rising demand for digitalization and strong growth outlook, Infosys has raised its FY22 revenue growth guidance from 14-16% to 16.5-17.5%. 

Meanwhile, Wipro has reported about 19% YoY growth in profits and a 30% YoY growth in revenues. The company said that it expects revenues to grow 2-4% in constant currency terms in the December quarter. Shares of Infosys (+1.1%) and Wipro (+2.0%) rose yesterday.

IGL hikes gas prices 

Gas distribution company Indraprastha has reportedly increased the prices of compressed natural gas (CNG) and piped natural gas (PNG) by 5% and 6.5%, respectively. The company said that this second price hike in a month was taken to partially cover the increase in input gas cost. 

Against this backdrop, shares of IGL were up 1.3% yesterday. The rub-off effect of the price hike was also seen on other gas distribution companies - Gujarat Gas (+2.0%) and Mahanagar Gas (+1.4%).

Cement demand to remain strong   

Ratings agency ICRA expects the cement production in India to rise by 12% in the current financial year. The rise in production is likely to be supported by rural housing demand and revival in infrastructure activity. Further, the agency expects the production to rise by 8% in FY23.

In the first five months of FY22, domestic cement production has been up 44% year-on-year and up just 2% in comparison to pre-pandemic levels.. Meanwhile, the prices of cement have also been hiked by 4% YoY to offset the rise of power, fuel and freight costs. Meanwhile, shares of Ultratech (+1.3) and ACC (+0.7%) were up yesterday

Sectoral indices (October 13)

Global markets (at 8:00 am)

Fact of the day

Launched in 1969, Japanese Sazae-san is the longest-running animated series in the world.

Source: Japan Times

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