Morning Update for 26 July 2021

Indices at previous closing

Nifty50: 15,856 ▲+32 (+0.2%)
Sensex: 52,975 ▲+138 (+0.2%)
Nifty Bank: 35,034 ▲+357 (+1.0%)

In the news

RIL’s Q1 profit beats estimates

• The oil-to-telecoms giant’s consolidated net profit before exceptional item grew 67% YoY to ₹13,806 crore, beating estimates of ₹11,890 crore. During the same period, revenue from operations rose 58% to ₹1,44,372 crore. 
• On a sequential basis, profit was down 8% and revenue fell nearly 7%. The O2C and digital services (Jio) businesses witnessed growth, but retail business revenues were down as store operations were impacted due to regional lockdowns. Jio’s average revenue per user was unchanged at ₹138 compared to the March quarter. Shares of Reliance Industries fell 0.8% on Friday, but the results were declared after market hours.

ICICI Bank’s Q1 profit surges 

• India’s second-largest private bank by market value reported a 78% year-on-year rise in net profit to ₹4,616 crore in the June quarter. This sharp profit growth was aided by a drop in provisioning for bad loans and double-digit growth in net interest income (NII). 
• The NII rose by 18% YoY to ₹10,936 crore. On a year-on-year basis, the bank’s asset quality improved marginally with the gross bad loans falling to 5.1% from 5.4%. Shares of ICICI Bank were up 3.1% on Friday, but the results were announced on Saturday.

IMFA soars after strong Q1

• Shares of Odisha-based Indian Metals and Ferro Alloys (IMFA) surged 7.3% after it posted a 305% rise in its net profit to ₹98.5 crore for the June quarter. The profit growth was driven by a 33% growth in revenue to ₹538 crore. 
• The company said that the global upswing in metal prices helped boost its top line. Going ahead, supply side dynamics are likely to dominate, but its integrated business model and strategy of entering into long-term contracts assures steady offtake and price stability.

Sectoral indices (July 23)

Global markets (at 8:00 am)

Fact of the day

In 1998, Google founders Larry Page and Sergey Brin wanted to sell the search engine to Yahoo for $1 million. But Yahoo was not interested as it wanted to focus on its own platform. Today, Google’s market cap is $1.8 trillion.

Source: Gadget 360

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