Morning Update for 27 July 2021

Indices at previous closing

Nifty50: 15,824 ▼-31 (-0.2%)
Sensex: 52,852 ▼-123 (-0.2%)
Nifty Bank: 34,949 ▼-84 (-0.2%) 

In the news

L&T’s profit soars in Q1

• For the June quarter, the infrastructure giant reported a consolidated net profit of ₹1,174 crore, up by 287% year-on-year. This sharp jump in profit was aided by a 38% YoY jump in the revenue to ₹29,335 crore. 
• During the quarter, the company also bagged orders worth ₹26,557 crore, a growth of 13% YoY. The total order book now stands at ₹3.2 lakh crores, over 2 times its FY21 revenues. The management believes that its large order book should help to sustain the growth momentum. The shares of Larsen & Toubro were down 0.7% yesterday, but the results were declared after the market hours.

Chip shortage continues to hurt Tata Motors

• Leading vehicle manufacturer reported a net loss of ₹4,450 crore as the semiconductor shortage dented production at Jaguar Land Rover. However, the loss narrowed compared to that in the last year as its revenue grew 107% YoY to ₹66,406 crore. It witnessed a recovery in demand for its automobiles.
• The company has warned that issues such as chip shortage, commodity inflation and pandemic-related uncertainty will have an impact in the short term. However, it expects performance to improve from the second half of FY22. Shares of the automobile manufacturer were down 0.9% yesterday. But the results were declared post the market hours.

SBI Life surges despite dip in profit

• The life insurance company’s net profit dropped by 43% year-on-year to ₹220 crore in the June quarter. The sharp rise in claims due to the second wave and lower investment income dented the profit. 
• The company has set aside ₹440 crore additional for the future Covid-related claims. However, the company’s net premium earned rose by 10% YoY to ₹8,312 crore. Despite the subdued performance, the shares of SBI Life were up 3.9% yesterday.

Sectoral indices (July 26)

Global markets (at 8:00 am)

Fact of the day

Warren Buffet-owned Berkshire Hathway's stock is the most expensive stock in the world. It is currently trading above $420,000 (₹3.12 crore).

Source: Yahoo News  

Yay 👍 or Nay 👎?
We'd love your thoughts on this morning update.

If you haven't already, open your Upstox account to get IPO-ready today! Click here to sign up.

To catch our latest educational videos, join our Telegram channel here.

Disclosures and Disclaimer

Investment in securities markets is 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.