Morning Update for 7 April 2022

Indices at previous closing

Nifty50: 17,807 ▼149 (-0.8%)

Sensex: 59,610 ▼566 (-0.9%)

Nifty Bank: 37,632 ▼435 (-1.1%)

For more updates on F&O, click here.

HDFC Bank to raise ₹50,000 crore

India’s largest private sector lender HDFC Bank said that it is planning to raise ₹50,000 crore in the next one year through a private placement of bonds ahead of its proposed merger with HDFC. The estimated requirement was more than ₹80,000 crore and the bank has some surplus bonds in its portfolio.

However, the board of directors will consider this proposal during their meeting on 16 April. In its regulatory filing, the company said that it proposes to raise funds by issuing perpetual debt instruments (part of additional Tier I capital), Tier II capital bonds and long-term bonds up to a total amount of ₹50,000 crore over the period of next one year through private placement mode.

Titan caps FY22 on “satisfactory” note

Jewellery and watch maker Titan said that it closed its March quarter "on a satisfactory note", despite hurdles like the Omicron and volatile gold prices. The company further said that demand remained robust, with most segments posting a year-on-year growth despite a very high base.

In Q4 of FY22, its jewellery segment witnessed a degrowth of 4%, while its watch and eye care businesses grew by 12% and 5%, respectively. Meanwhile, the company said network expansion continues to progress well, as it expects its business to normalise in Q1FY23 after a gap of two years.

Sugar rush as stocks surge 10%

In an otherwise weak market, sugar stocks were on a roll as they traded higher by up to 10%. Stocks like Dwarikesh Sugar, Dalmia Bharat Sugar and Industries and Triveni Engineering rallied between 4% and 10%.

As per a report, India's sugar export is likely to touch 8.5 million tonnes in the ongoing 2021-22 marketing year. Meanwhile, the government has pushed the timeline for the disbursement of loans for ethanol projects under various schemes to 30 September 2022, to boost domestic production and achieve ethanol blending of 20% by 2025.

Sectoral indices (April 6)

Global markets (at 7:50 AM today)

Fact of the day

India will need investments of $12.4 trillion, about half of the US current GDP, from developed nations and investors to transition to net-zero carbon emissions by 206

Source: Business Standard

Yay 👍 or Nay 👎?

We'd love your thoughts on this morning update.

If you haven't already, open your Upstox account to get IPO-ready today! Click here to sign up.

To catch our latest educational videos, join our Telegram channel here.

Disclosures and Disclaimer

Investment in securities markets is 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.