Morning Update for 8 February 2022

Indices at previous closing

Nifty50: 17,213 ▼302 (-1.7%)

Sensex: 57,621 ▼1,023 (-1.7%)

Nifty Bank: 37,995 ▼793 (-2.0%)

For more updates on F&O, click here.

TVS Motor gets a revenue boost

The Chennai based two-wheeler manufacturer's net profit rose 9% YoY to ₹288 crore. For the second time in a row, the company reported its highest-ever revenue of ₹5,706 crore, up 6%.

Despite the rise in commodity cost and ongoing semiconductor shortage, the company posted its highest-ever EBITDA of ₹568 crore, up 11% in Q3FY22. Its two-wheeler sales fell to 8.35 lakh units in Q3FY22 as against 9.52 lakh units in Q3FY21. However, its two-wheeler exports grew by 12%. Amid broader market weakness, shares of TVS Motor were down more than 2%, but the results were announced after market hours.

Union Bank's Q3 profit soars

The Mumbai-based public sector lender's net profit soared to ₹1,085 crore, up 49.2% YoY. The bank's net interest income grew by 8.8% to ₹7,174 crore, while its CASA ratio improved to 37% in Q3FY22 from 35.3% in Q3FY21.

This sharp rise in profit was aided by an 11% drop in provisioning for non-performing assets (NPAs). The bank's provisions and contingencies fell significantly by 51% to ₹2,549 crore. Its gross NPAs declined to 11.6% in Q3FY22 from 13.4% in Q3FY21. Despite the strong results, shares of Union Bank closed 0.8% lower, while the PSU Bank index (+0.9%) closed positive.

Adani Wilmar’s D-street debut

The shares of the Fortune edible oil maker will make its debut on the market today. The public issue was oversubscribed more than 17 times and received strong interest from non-institutional investors.

Meanwhile, the IPO party continues on D-street. Vedant Fashions, known for its ethnic wear brand Manyavar, was subscribed around 21% on Day 2. Click here to apply for this IPO on Upstox.

Sectoral indices (February 7)

Global markets (at 8:00 am today)

Fact of the day

Formula 1 driver Lewis Hamilton began his driving career when he was 8 years old and won the British Kart Championship when he was 10.

Source: Britanica

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