Morning Update for 7 April 2021

Indices at previous closing

Nifty50: 14,683 ▲ 45 (+0.3%)
Sensex: 49,201 ▲ 42 (+0.0%)
Nifty Bank: 32,501 ▼ -177 (-0.5%)

In the news

Tata Steel reports sales growth in Q4 

• Tata Steel’s India business recorded sales of 4.67 million tons in Q4FY21, a 16% YoY improvement. Meanwhile, its Europe business grew 4%. 
• On a full-year basis, the company achieved its highest-ever sales volume. Its shares were down 0.7% on Tuesday but have risen about 34% so far in 2021. 

Cement companies to raise prices

• On account of strong demand and rising cost of input materials, analysts expect cement companies to raise prices by ₹15–30 per bag in April. The street believes that the rise in price, coupled with better capacity utilisation is likely to improve earnings for the cement companies.  
• The growth in public sector construction activity and a revival in the housing market augur well for the cement sector. The shares of Ultratech Cement, Shree Cement, Ambuja Cement, and ACC have risen 18–27% so far this year.

Macrotech Developers IPO opens today

• Macrotech Developers, known for its ‘Lodha’ brand, will open its public issue from 7 to 9 April. The real estate developer aims to raise ₹2,500 crore through its maiden offer, which will entirely be a fresh issue.  
• The IPO has a price band of ₹483–486 per equity share and a lot size of 30 shares. You can subscribe to the IPO with Upstox here. 

IMF raises India GDP growth forecast

• In its World Economic Outlook, the International Monetary Fund (IMF) said it expects India's GDP to grow at 12.5% in FY22. It has raised its forecast from 11.5%, which it had predicted in January 2021. 
• At this rate, India would not only be the fastest growing country among emerging economies but also the only country to register a double-digit growth. For FY23, GDP growth is pegged at 6.9%. 

Events of the week

Wednesday: RBI’s interest rate decision, Services PMI (India), Crude oil inventories (US)

Thursday: Initial jobless claims (US)

Sectoral indices (6 April)

Global markets (at 8:45 am)

Fact of the day

Toyota was conceptualized in 1933 as a car manufacturing division under Toyoda Automatic Loom Works Ltd, a company that used to make sewing machines.
Source: Toyota

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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.