Morning Update for 27 April 2021

Indices at previous closing

Nifty50: 14,485 ▲ 143 (+1.0%)
Sensex: 48,386 ▲ 508 (+1.0%)
Nifty Bank: 32,275 ▲ 552 (+1.7%)

In the news

Tech Mahindra misses Q4 estimates

• The Mahindra Group’s IT services subsidiary’s consolidated revenue from operations rose 0.9% QoQ to ₹9,730 crore. Meanwhile, profit contracted 17.4% sequentially to ₹1,081 crore. Both figures missed the estimates of ₹9,801 crore and ₹1,303 crore, respectively. 
• The company claims to have won orders worth $1 billion in the latest quarter, versus the $455 million in Q3. Further, it has announced a final dividend of ₹30 per share, implying a dividend yield of 3%. The stock rose 2% yesterday.

SBI Cards sees strong profit growth

• Leading card issuer SBI Cards reported a 110% YoY jump in net profit to ₹175 crore for Q4FY21. The jump in profit was supported by higher other income, rise in income from fees and services, and lower provisions.
• While it was able to increase its market shares in card base and spends, its gross NPA increased to 4.99% from 2.01% last year and 4.51% in Q3FY21. Shares of SBI Cards fell 1.8% yesterday, but have gained nearly 8% in 2021.

Castrol quarterly profit doubles 

• The automotive lubricant manufacturer’s profits nearly doubled year-on-year to ₹243 crore, albeit over a lower of Q4FY20 which saw the onset of the pandemic. The surge in earnings was supported by a 66% jump in revenue, which stood at ₹1,139 crore.
• As per the company, the growth was aided by improving demand from tractor and SUV sales. However, the company believes the supply chain disruptions due to the second wave and rupee depreciation may impact demand and supply in the coming quarter. The stock rose 3.5% yesterday.

RBI warns of inflationary pressures

• The RBI has warned that the resurgence of the pandemic could bring back inflationary pressures. Further, the lockdown-related restrictions, if extended, could lead to supply-side issues.
• The rate of inflation in India is already running ahead of street expectations and stood at 5.52% in March, up from a low of 4.06% in January. High international commodity prices and logistics costs have also led to the rise in inflation.

Sectoral indices (26 April)

Global markets (at 8:30 am)

Fact of the day

GIF or the graphics interchange format was invented by American computer scientist Steve Wilhite in 1987, four years before the advent of the World Wide Web.
Source: Smithsonianmag.com

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