Morning Update for 25 October 2021

Indices at previous closing

Nifty50: 18,114 ▼ −63 (0.3%)
Sensex: 60,821 ▼ −101 (0.1%)
Nifty Bank: 40,323 ▲+293 (0.7%)

For more updates on F&O, click here.

In the news

Reliance Q2 beats street estimates 

The oil-to-telecom conglomerate reported a record consolidated net profit of ₹15,479 crore, up 46% year-on-year for the September quarter, beating the street estimate of ₹12,526 crore. Its gross revenue stood at ₹1.9 lakh crore, up 49%. This sharp growth in the top line was mainly supported by a 58% jump in oil to chemical segment revenues. 

Meanwhile, Jio's average revenue per user (ARPU) came in at ₹143, up 3.7% QoQ. The retail business posted a strong net profit growth of 74% to ₹1,695 crore supported by a favourable revenue mix, cost management and operating leverage. Shares of Reliance Industries closed flat on Friday but the results were announced after market hours.

ICICI Bank's profit soars in Q2 

India’s second largest bank by market cap posted a 30% year-on-year rise in net profit to ₹5,511 crore in the September quarter beating the street estimate of ₹5,441 crore The strong growth in profit was supported by a 25% rise in net interest income to ₹11,690 crore. Also, the profit received a boost from a 9% drop in net provisioning. 

Meanwhile, the bank’s asset quality improved with gross NPAs, declining to 4.8% in Q2FY22 from 5.3% in Q2FY21. In the same period, the bank's CASA ratio also increased from 40% to 44%. Shares of ICICI bank closed 0.3% up on Friday but the results were announced on Saturday. The stock is up 8% so far this month. 

The IPO party continues 

The beauty and fashion retailer Nykaa is all set to join the IPO bandwagon this week. The company is launching a ₹5,324 crore IPO on October 28 with a price band of ₹1,085 to ₹1,125 per share. Besides Nykaa, Fino Payment Bank, which is a growing fintech player, will launch its public issue on October 29. 

This IPO party is expected to continue with six more companies receiving a nod from the market regulator SEBI to launch their public issues. You can apply for IPOs on Upstox.  

Sectoral indices (October 22)

Global markets (at 8:00 am)

Fact of the day

In 2018, General Electric was removed from the Dow Jones 30-stock index for the first time in 110 years. The light bulb and jet engine maker was an original member of the index. 

Source: CNN Money

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