Morning Update for 2 August 2021

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Indices at previous closing

Nifty50: 15,763 -15 (-0.0%)
Sensex: 52,586 -66 (-0.1%)
Nifty Bank: 34,584 -107 (-0.3%)

In the news

Britannia’s Q1 profit misses estimates 

In Q1FY22, Britannia industries’ net profit declined 29% year-on-year to ₹390 crore, missing street estimates of ₹412 crore. Its revenue from operations also dipped 1% to ₹3,403 crore on account of the higher base of last year. 

The company said that the prices of raw materials such as palm oil and crude have been rising. In light of higher raw material prices, the company is taking cautious steps on pricing but is aggressive on cost controls. Shares of Britannia were up 0.5% but the results were announced after market hours.

Bandhan Bank’s profit declines in Q1

The bank’s net profit dropped by 32% year-on-year to ₹373 crore in the June quarter. The rise in provisioning for non-performing assets dented profits. The lender’s net interest income rose by 16% to 2,114 crore, aided by 8.1% growth in the loan book.  

In the same period, the net interest margin slightly improved to 8.5% from 8.2%. But the gross NPAs rose sharply to 8.2% in June 2021 from 1.4% in June 2020, indicating that the second wave has dented asset quality. Shares of the bank were down 0.3% on Friday but the results were announced after market hours.

Finolex Industries’ profit soars in Q1

The PVC pipes and fittings manufacturer reported a 166% year-on-year jump in net profit to ₹146 crore in the June quarter. The sharp rise in profit was aided by a surge in revenue, which rose by 72% YoY to ₹966 crore. 

Higher PVC prices in Q1 compared to that in the last year resulted in a spike in margins. However, the company has said that PVC prices are cooling off after hitting an all-time high. The management believes this is a positive sign as it could drive volumes going ahead. Shares of the company were up 0.2% on Friday, but the results were announced after market hours.

Sectoral indices (July 30)

Top gainers Top losers
Nifty Pharma
Nifty Metal
▼ 0.7%
Nifty Media
Nifty PSU Bank
▼ 0.3%

Global markets (at 8:00 am)

Indices Today's movement
SGX Nifty 0.6%
Nikkei 225
Hang Seng
(Hong Kong)
▼ 0.7%
SSE Composite (China) ▼ 0.8%
Dow Jones (US)
(July 30)
▼ 0.4%


Fact of the day

Smallpox was entirely eradicated in 1980. It is the only infectious disease to be completely eradicated from the world.

Source: World Health Organisation

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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.