Morning Update for 29 July 2021

Indices at previous closing

Nifty50: 15,709 ▼ -37 (-0.2%)
Sensex: 52,443 ▼ -135 (-0.2%)
Nifty Bank: 34,532 ▼-264 (-0.7%)

In the news

Nestle’s Q1 profit misses street expectations

• In the June quarter, the FMCG major’s net profit grew by 10.6% YoY to ₹538 crore, missing the street’s estimate of 14–19%. Meanwhile, the company’s revenue from operations rose by 13.8% to ₹3,477 crore due to better volumes and product mix. 
• Its key products such as Maggi Noodles and Kitkat posted strong double-digit growth. The company also said that prices of inputs such as oil and packaging materials have been rising. Shares of Nestle India were down 1.2% yesterday but the results were announced after market hours.

Bharti Airtel surges on tariff revision

• Shares of the leading telecom service provider surged 5% yesterday after it said that it is discontinuing its entry-level ₹49 prepaid recharge. From today, the company’s prepaid plans will start at ₹79, which will offer more outgoing minutes and data.
• This comes after the company hiked entry-level tariffs for corporate and family postpaid plans last week. These revisions are expected to boost the company's average revenue per user.

ABB’s Q1 profit soars

• The power products and process-automation solutions provider reported a 308% year-on-year rise in its June quarter net profit to ₹68 crore. This strong jump was led by better capacity utilisation, revenue mix and cost controls. Its revenues rose by 45% to ₹1,425 crore with all its verticals showing growth. 
• During the quarter, it garnered orders worth ₹1,689 crore and the total order book stands at ₹4,583 crore, which is more than its revenues last year. Going ahead, it expects business recovery from growth industries such as datacenters, renewables, pharma, and other core industries, which should restart the long overdue capex cycle. Shares of ABB were up 2.2% yesterday in an otherwise volatile market. 

Sectoral indices (July 28)

Global markets (at 8:00 am)

Fact of the day

China accounts for 52% of the global coal consumption. India ranks a distant second with around 11% of the global consumption.

Source: Yearbook

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