Morning Update for 21 October 2021

Indices at previous closing

Nifty50: 18,266 ▼-152 (0.8%)
Sensex:61,259 ▼-456 (0.7%)
Nifty Bank:39,518 ▼-22 (0.05%)

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In the news

Voda Idea opts for moratorium 

Telecom operator Vodafone Idea has reportedly informed the government that it has opted for a four-year spectrum payment moratorium starting from October 2021. It is the first telecom player to accept the relief package provided by the government. 

The company said that the confirmation regarding converting the interest amount pertaining to the moratorium period into equity will be conveyed to the government later. Meanwhile, according to data released by the TRAI, the company lost 8.33 lakh subscribers in August ‘21. Whereas its peers, Reliance Jio and Bharti Airtel gained 6.5 lakh and 1.3 lakh subscribers, respectively. Despite a weak market, shares of Vodafone Idea rose 7% yesterday.

PVR expects strong pick up in Q4

Two days ahead of multiplexes reopening in Mumbai, PVR has launched PVR Maison at the Jio World Drive in Mumbai. Spread across six screens, the new property has a seating capacity of 882.  

Multiplexes have been among the hardest hit by the lockdowns, with the sector losing ₹4,800 crore in Maharashtra alone. The sector is also among the last to restart operations in Maharashtra. However, PVR’s management expects a strong pickup in business in the last three months of this financial year. Meanwhile, shares of the company were down 0.7% yesterday.

Shoppers Stop Q2 loss narrows

In the September quarter, the fashion and beauty brands retailer’s loss narrowed to ₹3.5 crore from ₹97.7 crore in the same period last year. The fall in the loss was aided by a 117% rise in the revenue to ₹709 crore. The company attributed sharp top line growth to strong recovery in demand after the second wave. 

The management also highlighted that sales reached their pre-pandemic level in August and September. The company has witnessed a strong growth of 142% in the beauty segment. Further, it has managed to cut its net debt to ₹62 crore in Q2FY22 from ₹196 crore in Q2FY21.  Meanwhile, shares of Shoppers Stop were down 0.3% but the results were announced after market hours.

Sectoral indices (October 20)

Global markets (at 8:00 am)

Fact of the day

During the 2008 global financial crisis, Iceland’s external debt was at a whopping 936% of its nominal GDP. The figure stood at about 84% in 2020.   

Source: CEIC Data

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