Morning Update for 22 February 2021

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Previous closing (19 February 2021)

Nifty50: 14,981 137 (-0.9%)

Sensex: 50,889 434 (-0.8%)

Nifty Bank: 35,841 ▼ 745 (-2.0%)


In the news

Jubilant gets larger slice of Domino’s pie

  • The master franchisee of Domino’s Pizza (DP) in India will now buy a 32.81% stake in the American chain’s Eurasia business. This extends Jubilant Foodworks’ (JF) footprint as a franchisee holder into Turkey, Russia, Azerbaijan and Georgia.   
  • The acquisition, pegged at 24.8 million pounds, will give JF access to a total of 771 stores, comprising dine-in, delivery and takeaway outlets. Last week, JF’s stock gained over 5%, in a weak market, and closed at its lifetime high. 

 

Maruti to capitalise on CNG demand 

  • Soaring fuel prices have accelerated the demand for vehicles running on compressed natural gas (CNG). That’s a trend that the country’s largest carmaker aims to tap into. The company expects to sell 1.55 lakh CNG-powered vehicles this fiscal, a 50% YoY growth.  
  • As per Maruti, the cost to run a CNG vehicle comes to ₹1.5/km versus about ₹4/km for petrol/diesel-powered vehicles. In addition to lower running costs, the increasing penetration of CNG filling stations in the country has also helped boost the alternative fuel. The shares of Maruti Suzuki lost 3.2% last week.   

 

Marico upbeat about demand revival

  • After a relatively positive Q3, the maker of Parachute oil is optimistic about demand revival and growth in rural markets to drive business going forward. In fact, it aims to deliver mid-teen growth in volumes in the upcoming quarters.  
  • However, the FMCG major expects a transient pressure on margins owing to rise in raw material costs. It expects to clock up to ₹500 crore (from around ₹350 crore expected in FY21) from its health and immunity foods segment in FY22 where it has launched several new products recently. The stock gained about 3.2% last week. 

 

FPIs continue buying spree

  • Foreign portfolio investors (FPIs) pumped in a total of ₹24,204 crore into the Indian equity markets in February so far. The figure for January was ₹19,473 crore.  
  • As per reports, the buying spree is on account of high growth expectations from India in 2021, coupled with a positive Q3 results season and a pro-growth Budget. Emerging markets such as India are likely to continue receiving foreign investments as long as global central banks maintain their accommodative stance in order to revive their economies. 

 

Events of the week

  • Wednesday: New home sales, Crude oil inventories (US)
  • Thursday: Initial jobless claims, Pending home sales (US)
  • Friday: GDP (India)

Sectoral indices (Previous closing)

Top gainers Top losers
NA Nifty PSU Bank
▼ 4.7%
NA Nifty Auto
▼2.6%

Global markets (at 8:30 am today)

Indices Today's movement
Nikkei 225 (Japan) ▲ 0.7%
Hang Seng (Hong Kong) ▲ 0.2%
SSE Composite (China) ▲ 0.0%
Dow Jones (US)
(19 Feb)
▲ 0.0%


Fact of the day

Tata Airlines–founded by J. R. D. Tata–was India’s first air service flight. It was rechristened Air India in 1946 and nationalised in 1953.
Source: Economic times

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Investment 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.

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