Morning Update for 3 May 2021

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Indices at previous closing

Nifty50: 14,631 263 (-1.7%)
Sensex: 48,782 983 (-1.9%)
Nifty Bank: 32,781 932 (-2.7%)

In the news

O2C business drives RIL’s Q4 profit

  • For Q4FY21, Reliance Industries reported a 0.7% QoQ growth in its consolidated net profit to ₹14,995 crore. Meanwhile, revenue grew 24.9% to ₹1.72 lakh crore, during the same period. Both figures beat street estimates of ₹13,703 crore and ₹1.39 lakh crore, respectively.
  • The oil-to-chemicals segment reported a 20.6% QoQ rise in revenues supported by higher volumes and a sharp increase in product prices. Similarly, the retail segment saw a 24.4% rise in revenue led by a revival in store operations and rise in digital commerce. The stock was down 1.4% on Friday in a weak market, but the results were announced after market hours.

Passenger vehicle sales fall in April

  • Although far from the zero sales month of April 2020, major passenger vehicle makers reported a month-on-month dip in sales during April 2021. At a total of 159,691 units, Maruti Suzuki’s sales shrank about 4% MoM, whereas Tata Motors reported a sharper 15% drop to 25,095 units in its domestic passenger vehicle segment. 
  • Meanwhile, M&M’s passenger vehicle division, which mainly includes utility vehicles, bucked the trend to report a 9.5% rise at 18,285 units in April. 
  • The drop in sales was largely due to the regional lockdowns during the second wave. The Nifty Auto index is down about 2.2% since April. 

IndusInd Bank’s profit grows three-fold in Q4

  • The private lender reported a 9% YoY improvement in its net interest income at ₹3,535 crore. Meanwhile, net profit at ₹926 crore zoomed 194%, versus street estimates of ₹904 crore. The sharp jump in profits is attributed to a 24% drop in provisions. 
  • At 0.69%, the bank’s net NPAs are 22 bps lower than Q4FY20. The stock was down 0.4% on Friday, but has risen about 4.5% so far this year.

FII turn net sellers in April

  • After being buyers for six months, foreign institutional investors (FII/FPI) turned net sellers in April, as the second wave intensified. They sold equities worth ₹9,659 crore. However, this figure pales in comparison to the ₹55,741 crore that they pumped into the markets between January and March of 2021. 
  • Further, despite the selling pressure in April, the Nifty50 index has lost just 0.4% in the month and was largely supported by the buying from domestic institutional investors (DII).

Events of the week

  • Monday: Manufacturing PMI (India)
  • Wednesday: Services PMI (India), Crude Oil inventories (US)
  • Thursday: Initial jobless claims (US) Friday: Unemployment rate (US)

Sectoral indices (30 April)

Top gainers Top losers
Nifty Pharma
Nifty Fin Serv
NA Nifty Bank

Global markets (at 8:15 am)

Indices Today's movement
Nikkei 225 (Japan) 0.5%
Hang Seng (Hong Kong) 1.5%
SSE Composite (China) 0.6%
Dow Jones (US)
(30 April)

Fact of the day

American Express was the first company to introduce plastic credit cards. Before 1959, cards were made of either celluloid or cardboard.
Source: TIME

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Investments 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.