Morning Update for 18 May 2021

Indices at previous closing

Nifty50: 14,923 ▲ +245 (+1.67%)
Sensex: 49,580 ▲ +848 (+1.74%)
Nifty Bank: 33,459 ▲ +1,289 (+4.0%)

In the news

Bharti Airtel’s Q4 profit misses estimates

• The telecom major posted quarterly revenues of ₹25,747 crore, 17.6% higher YoY. Its consolidated net profit at ₹759 crore, although strong versus the ₹5,237 loss reported last Q4, was 11% down on Q3 and street estimates of ₹958 crore.
• Although Airtel has added more active subscribers than the competition, the company’s average revenue per user, or ARPU, has declined 12.6% QoQ to ₹145. The stock was down 2.2% yesterday, but has risen 7.4% so far this year.

Shilpa Medicare ties up with Dr Reddy’s for Sputnik V

• Shilpa Biologicals, a wholly-owned subsidiary of Shilpa Medicare, has entered into a three-year agreement with Dr Reddy’s to produce and supply the Sputnik V Covid-19 vaccine.
• The company aims to produce 5 crore doses in the first 12 months from the start of commercial production. Shares of Shilpa Medicare rose nearly 12% today, while those of Dr Reddy’s were up about 1%.

Gland Pharma posts strong quarter

• The Hyderabad-based injectables company recorded a 40% YoY rise in its Q4 revenue from operations at ₹887 crore. Profit after tax for the quarter stood at ₹260 crore, up 34%.
• Revenues from its core markets such as the US, Europe, Canada and Australia grew 29%, whereas business from the rest of the world (excluding India) rose nearly 200%. The company plans to leverage its vaccine business to enter into the biosimilars segment. The stock was down 2.2% yesterday, but has risen 86% since it got listed in November 2020. The results came after market hours.

Colgate-Palmolive sees robust profit growth

• FMCG major Colgate-Palmolive reported a 20% YoY growth in Q4 sales to ₹1,275 crore. Its profit grew at a faster clip of 54% to ₹314 crore. Its shares closed 2.2% higher yesterday backed by high volumes.  
• The management commented that it is seeing strong growth momentum across all categories. The company’s stock is about 5% away from its lifetime high.

Events/data releases of the week

• Tuesday: Building permits (US)
• Wednesday: Crude oil inventories (US)
• Thursday:  Initial jobless claims (US)

Sectoral indices (17 May)

Global markets (at 8:00 am)

Fact of the day

The term "blue chip" came about from the game of poker in which the blue chips have the highest value.
Source: Motley Fool 

Tweet this

Yay 👍 or Nay 👎?
We'd love your thoughts on this morning update.

If you haven't already, open your Upstox account to get IPO-ready today! Click here to sign up.

To catch our latest educational videos, join our Telegram channel here.

Disclosures and Disclaimer

Investments 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.