Morning Update for 29 April 2021

Indices at previous closing

Nifty50: 14,864 ▲ 211 (+1.4%)
Sensex: 49,733 ▲ 789 (+1.6%)
Nifty Bank: 33,722 ▲ 987 (+3.0%)

In the news

Tata Communications back in black in Q4

• The telecom company witnessed a 7.4% YoY decline in its Q4 consolidated revenue, reported at ₹4,073 crore. The drop is a result of degrowth in the company’s voice and data businesses, due to longer deal cycles during the pandemic.
• In contrast, better operating performance led to a profit of ₹299 crore versus a loss of ₹275 crore reported last Q4. In fact, the company’s profit after tax of ₹1,251 crore for FY21 is its highest in 11 years. The results were declared after market hours. The shares closed 0.4% lower yesterday. 

KPIT’s profit rises in Q4 

• For Q4, the Pune-based IT services company reported a 4.3% sequential improvement in revenue from operations, which stood at ₹540 crore. However, profits grew at a faster clip to ₹47 crore up 9.4% QoQ due to improved utilisation and offshore revenues.
• The company claims to have a healthy order book and decent medium-term visibility and expects to grow at double-digits in FY22. The stock has risen about 10% in April but fell 2% yesterday in an otherwise strong market.

Morepen Labs soars on new investment

• Shares of the pharma company hit their 52-week high after the company’s board approved the investment of $32.5 million by Switzerland-based Corinth Group. The investment is part of an overall package of $100 million, and the remaining $67.5 million will go into promoter group companies.
• The company envisages a total investment of ₹565 crore by the investor and promoter to be used for expanding the API R&D centre and setting up a new plant and diagnostic facilities. The stock was locked in its 10% upper circuit yesterday and has jumped over 72% this month. 

ABB India reports strong quarter

• For the March quarter, the engineering services company reported a 128% YoY jump in net profits to ₹151 crore. This surge was supported by improvement in margins and a ₹74 crore one-time gain on sale of a property.
• Its revenues saw a modest rise of 7% YoY to ₹1,629 crore. The company's order inflows declined by 7% YoY to ₹1,830 crore during the quarter, and total order book stands at around ₹4,330 crore. The stock dipped 0.6% yesterday but has gained 14.5% so far in 2021. 

Events/data releases of the week

• Thursday: GDP, Initial jobless claims (US) 

Sectoral indices (28 April)

Global markets (at 8:30 am)

Fact of the day

In some European markets, Netflix monitors illegal downloads to decide which shows to purchase.
Source: Forbes

Tweet this

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.

Disclosures and Disclaimer

Investment in securities markets are 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.