Indices at previous closing
Nifty50: 15,197 ▲ +22 (+0.1%)
Sensex: 50,651 ▲ +111 (+0.2%)
Nifty Bank: 34,943 ▲ 336 (+0.9%)
In the news
Strong demand boosts Grasim’s Q4
- Riding on the strong recovery in demand in its textile, chemicals and cement businesses, Grasim Industries reported a 14% rise in its Q4 consolidated net profit to ₹1,715 crore. Similarly, total revenue from operations, too, jumped 26% to ₹24,399 crore.
- During FY21, the company managed to reduce net debt by 58% to ₹8,831 crore. The company said that its plans to enter the paint business are on track. The stock closed flat on Monday, but has gained nearly 48% so far in 2021.
Market share of listed realty players on the rise
- As per an industry report, the market share of the top-8 listed realty players in housing sales went up to 22% in the first nine months of FY21. Their share across the was as low as 6% in FY17.
- Buyers’ preference toward branded players has picked up due to the introduction of RERA and GST. These players have also expanded their offering by entering the affordable and mid-income segments, rather than catering only to the luxury segment. Meanwhile, the Nifty Realty index has risen 5% so far this month.
India Cements posts profitable Q4
- A steep hike in prices of input costs notwithstanding, India Cements posted a net profit of ₹72 crore in the March quarter as against a loss of ₹111 crore in the year-ago period. Lower discretionary spending, increased volume and stable cement prices helped the company offset the rise in input costs.
- The company witnessed a 13% rise in its volumes. The company has highlighted several demand triggers going ahead, notably normal monsoons, increase in construction activity and infra-related capex by the government. The stock declined 3.4% yesterday but has risen about 20% so far in May.
Barbeque Nation optimistic about FY22
- The recently listed casual dining chain reported a strong recovery from the pandemic with a consolidated revenue of ₹226 crore in Q4, up 18.5% YoY. Its revenue from delivery rose nearly five times to ₹28 crore.
- It was able to improve margins through rental negotiations and optimising costs. Importantly, the company posted a profit of ₹6 crore versus a loss of nearly ₹28 crore during last Q4. The company expects to grow its delivery segment by 2x, and also plans to add about 20 new outlets in FY22, against the single outlet it added in FY21. The stock has risen about 28% since listing in April 2021.
Events of the week
- Tuesday: New Home Sales (US)
- Wednesday: Crude Oil Inventories (US)
- Thursday: GDP data, Jobless claims (US)
Sectoral indices (24 May)
| Top gainers | Top losers |
| Nifty PSU Bank ▲ 2.1% |
Nifty Metal ▼ 0.6% |
| Nifty Realty ▲ 1.3% |
Nifty FMCG ▼ 0.3% |
Global markets (at 8:00 am)
| Indices | Today's movement |
| SGX Nifty | ▲ 0.6% |
| Nikkei 225 (Japan) |
▲ 0.6% |
| Hang Seng (Hong Kong) |
▲ 0.9% |
| SSE Composite (China) | ▲ 1.1% |
| Dow Jones (US) (24 May) |
▲ 0.5% |
Fact of the day
The expiration date on water bottles is for the bottle, not the water. The plastic will leach into the water once expired, or when exposed to heat.
Source: Reader’s Digest
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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.