Morning update for 5 January 2021

Indices at 10:00 am

      Nifty50 14,087 ▼ 45 (-0.3%)

         Sensex 48,036 ▼ 139 (-0.2%)

  Nifty Bank 31,133 ▼ 79 (-0.2%)

In the news

HDFC seeing strong loan offtake

• Financial services major HDFC  continued to see improvement in its individual loan business in Q3, as disbursements grew 26% YoY. This was higher than the 9% growth seen in loan approvals in Q2. 
• Shares of HDFC were upbeat today, gaining 1.8% in an otherwise subdued market. In Q3, the stock rose 47%.

Bajaj Finance AUM contracts

• Bajaj Finance booked 60 lakh new loans Q3 compared to 77 lakh new loans in the same period last year. Further, its assets under management stood at ₹1.43 lakh crore in Q3, a dip of 1% YoY. 
• Shares of Bajaj Finance rose over 60% in Q3. Today, the stock was down 1.1% and saw some profit-booking. 

National Fertilizers hits record production

• The state-owned fertilizer maker clocked its highest-ever production of urea at 9.9 lakh MT in Q3. It was also able to record its highest production of bentonite sulphur at 4,981 MT.
• Shares of NFL have been on an uptick over the last two months, gaining nearly 24%. The stock is up 9% today.

Sugar production rises in Q3

• Indian sugar mills produced 110.2 lakh tonnes of sugar during Q3, a rise of 42% YoY. 
• Typically, the increase in production put pressure on sugar prices. However, rising sugar prices in the global markets and opportunities to export sugar are expected to help sugar companies. Major sugar stocks were trading mixed as EID Parry was up (+1.2%), and  Balrampur Chini (-0.5%) and Shree Renuka (-0.8%) were down. 

Events in this week

• Wednesday: Services PMI (India), Crude oil inventories (US)
• Thursday: Initial jobless claims (US)

Sectoral indices

Fact of the day

Remember seeing the ‘MRF’ sticker on Sachin Tendulkar’s bat? It stands for ‘Madras Rubber Factory’.
Source: NDTV

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