Morning update for 4 February 2021

Indices at 10:00 am

        Nifty50 14,762 ▼ 27 (-0.1%) 

          Sensex 50,115 ▼ 139 (-0.2%)

          Nifty Bank 34,366 ▼ 391 (-1.1%)

In the news

Bharti Airtel posts record revenues in Q3

• The telecom major posted consolidated net profits of ₹854 crore in Q3 after six consecutive loss-making quarters. The stock has gained 9% this week and hit its lifetime high of ₹623 today. 
• At ₹26,518 crore, total revenue was up 24.2% YoY and was the company’s highest-ever quarterly figure supported by growth in user base along with a rise in its average revenue per user (ARPU). Its mobile ARPU stood at ₹166, up 23% YoY.

Ujjivan SFB posts a loss as provisioning rises

• Ujjivan Small Finance Bank reported a net loss of ₹279 crore in Q3 FY21, mainly on account of higher provisioning. The bank posted a net profit of ₹90 crore in the same period last fiscal.
• The bank’s net interest income was up 1.2% at ₹432 crore as against ₹427 crore. Its net NPA stood at 0.05% compared to 0.4% last year. Without the effect of the Supreme court’s order, the net NPA would have risen to 2.05%. The stock was trading 6.3% lower today.

Pipes makers fare well in Q3

• Plumbing pipe maker Astral’s Q3 standalone revenues rose 33% YoY to ₹693 crore and net profit rose 80% YoY to ₹104 crore. The recovery in sales picked up momentum in Q2 and further accelerated in Q3. The stock has gained 13% this week and is trading flat today. 
• Similarly, Prince Pipes reported a 39% YoY rise in revenues to ₹549 crore and a 175% YoY growth in profits to ₹67 crore. The stock is up 27% this week and is trading 12% higher today.

Crude oil rises on reduced output

• The OPEC+ alliance of major oil producers continued to maintain their reduced output policy in its recent meeting. Further, US crude oil inventories declined contrary to street expectations of a rise, adding upward pressure on the prices. 
• The price of crude oil has gained nearly 7.5% this week and is up 0.7% today. 

Events this week

• Thursday: Initial jobless claims (US)
• Friday: RBI interest rate decision (India)

Sectoral indices

Fact of the day

Amazon owns Goodreads, Audible.com, IMDB, and the Washington Post among other brands.
Source: Market Watch 

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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.