Morning Update for 22 July 2021

Indices at previous closing

Nifty50: 15,632 ▼-120 (-0.7%)
Sensex: 52,198 ▼-354 (-0.6%)
Nifty Bank: 34,415 ▼-663 (-1.8%)

In the news

Bajaj Finance posts muted Q1 results

• In the June quarter, the leading NBFC posted a marginal 4% YoY growth in its consolidated net profit at ₹1,002 crore, missing street estimates of ₹1,356 crore. This is despite the net interest income growth of 8% to ₹4,489 crore. The company’s bottom line was adversely impacted by loan losses and an increase in provisioning. 
• The gross NPAs increased to 2.9% in the June quarter as compared to 1.7% in Q1FY21. The deterioration of asset quality was led by the sharp rise of bad loans in the auto financing segment. Shares of Bajaj Finance fell by 0.8% on Tuesday, but have gained by 15% in this fiscal.

IPO party continues on D-Street

• Glenmark Life Sciences will launch its IPO next week between 27 and 29 July with a price band of ₹695–₹720 for the IPO. The company develops and manufactures active pharmaceutical ingredients, which are used in chronic therapeutic areas including cardiovascular diseases and diabetes. 
• The ₹1,513 crore IPO includes an offer for sale from parent company Glenmark Pharmaceuticals and a fresh issue to fund capex. You can apply for this IPO on Upstox from 27 July. For more IPO updates, follow Upstox on social media. 

Syngene International's profit soars in Q1

• The pharma company’s net profit rose by 33% year-on-year to ₹77 crore in the June quarter. The strong profit growth was driven by a 41% increase in revenue to ₹594 crore.
• The management has said that the strong demand for Covid drug Remdesivir boosted the growth in Q1. Shares of the company were down 3% on Tuesday, but the results were announced post market hours.  

Sectoral indices (July 20)

Global markets (at 8:00 am)

Fact of the day 

The Italian region of Calabria is offering to pay $33,000 to settle in its villages. With the villages in the region facing an exodus, the region is wooing people below 40 years to spur up the local economy.

Source: Forbes

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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.