Morning Update for 26 April 2021

Indices at previous closing

Nifty50: 14,341 ▼ 64 (-0.4%)
Sensex: 47,878 ▼ 202 (-0.4%)
Nifty Bank: 31,722 ▼ 60 (-0.1%)

In the news

HCL Tech reports weak quarter

• The IT major reported a 72% sequential decline in net profit, impacted by a one-time bonus to employees and higher taxes. Its revenues grew 1.8% QoQ to ₹19,642 crore. The revenue growth was lower than that of its competitors, which witnessed growth of  2–4%.
• Last week, HCL Tech’s stock fell 5.6%, underperforming the Nifty IT index, which fell 2.7%. For FY22, its management has guided for double-digit growth, supported by deal wins and the rising share of it's products and platforms business. 

ICICI Bank’s profits surge in Q4

• The private lender posted a 260% YoY growth in profits of ₹4,403 crore on account of higher interest income and lower provisioning. However, the profit was still below the street’s expectation of ₹4,507 crore.
• At 4.96%, the bank's gross non-performing assets (NPAs) are lower than Q4FY20's 5.53% but more than last quarter's 4.38%. Shares of ICICI Bank were down 2% on Friday, but rose 0.5% last week.

Mahindra Finance profit drops in Q4

• The Mahindra Group NBFC reported an 8% YoY drop in consolidated net profit to ₹219 crore in Q4FYF21. The total income declined 3% to ₹3,038 crore. 
• As on FY21, the company’s loan assets contracted 5% YoY to ₹64,608 crore, while disbursements were down 41% to ₹19,001 crore. Further, gross non-performing assets (GNPAs) rose to 9.0% in March 2021 from 8.4% in March 2020. The stock was up 2.1% on Friday, but has fallen over 10% this month.

Oriental Hotels shows sequential recovery

• The Chennai-based hotel company reported a ₹4.6 crore loss in Q4 as its revenue declined 26% YoY to ₹52.7 crore. However, compared to Q3, revenues jumped 23% as it witnessed some recovery in demand mainly in the leisure destinations. 
• The company is an associate company of Indian Hotels Company Limited (IHCL). It has seven hotels mostly in southern states, predominantly in Tamil Nadu. 

Sectoral indices (23 April)

Global markets (at 8:15 am)

Fact of the day

In the first month of its launch, Amazon had already sold books to people in all 50 US states and in 45 different countries.
Source: History Channel

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