Morning Update for 16 November 2021

Indices at previous closing

Nifty50: 18,109 ▲+6 (+0.0%)
Sensex: 60,718 ▲+32 (+0.0%)
Nifty Bank: 38,702 ▼-31 (-0.0%)

For more updates on F&O, click here.

Nykaa’s profit dips in Q2

The recently listed online beauty and fashion products retailer reported a 95% year-on-year drop in its net profit to ₹1.2 crore for the September quarter. The profit dipped despite revenues rising by 47% to ₹885 crores. The profits were impacted due to higher marketing and advertising expenses which rose nearly 3-fold. 

Operationally, the monthly average unique visitors in the Beauty & personal care vertical and fashion vertical increased 62% and 328%, respectively. During the quarter, it also launched an eB2B platform called SuperStore to cater to underserved retailers and markets across India. Meanwhile, the stock saw some profit booking and fell 3.8% yesterday.

Granules India hits 52 week low on weak Q2

Hyderabad-based pharmaceutical company’s net profit plunged 51% year-on-year to ₹80 crore. The revenues rose marginally by 3% to ₹888 crore supported by new launches and increased market share of existing products.   

The company’s performance was impacted due higher raw material prices and increase in logistics costs. Further, it also faced pricing pressure in the US market resulting in drop in margins. It’s shares hit a 52 week low yesterday and fell nearly 10% intraday. It saw buying interest at lower levels and eventually closed about 3% lower.

Defensive stocks see investor interest

Yesterday, the so-called defensive sectors viz. Pharma and FMCG saw high investor interest and their sectoral indices rose between 1.0% to 1.4%. Whereas, the cyclical metal index witnessed a fall of 1.8%. 

The wholesale price inflation (WPI) rose to a 5-month high of 12.5% in October and it is typically considered to be a precursor to retail inflation. The rate sensitive banking sector, especially PSU banks, was also subdued yesterday. The sectoral indices movements indicate sectoral rotation in place favouring the defensive sectors.

Sectoral indices (November 15)

Global markets (at 8:15 am)

Fact of the day

Around 70% of South America's GDP is produced in areas that receive rainfall or water from the Amazon rainforest. 

Source: Mongabay

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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.