Morning Update for 8 July 2021

Indices at previous closing

Nifty50: 15,879 ▲+61 (+0.3%)
Sensex: 53,054 ▲+193 (+0.3%)
Nifty Bank: 35,771 ▲+192.15 (0.5%)

In the news

JSPL sees modest Q1 growth

• Shares of leading steel producer Jindal Steel were up 2.3% yesterday after the company announced that its sales volumes rose 3% year-on-year in Q1. Meanwhile, the proportion of exports in total sales declined to 34% (versus 58% last year) due to port-congestion issues. 
• The company is on a debt-reduction spree. It cut its net debt from ₹35,900 crore at the end of FY20 to ₹22,100 crore at the end of FY21. It further expects to reduce the overall debt to ₹9,900 crore by the end of this fiscal. 

Indian Hotels shares rally

• Shares of the Tata Group company rose by 6% intraday after the management announced that it will be raising ₹250 crore in debt through private placements. This comes at a time when there is pent-up demand for travel in the wake of the easing of restrictions.
• In the annual report, the management said that it expects a gradual recovery from the second half of FY22 against the backdrop of large vaccination drives, pent-up travel demand, increase in domestic tourism and opening of international borders. However, shares of the company pared some of their early gains and closed around 3.5% higher yesterday.

Goldiam glitters on buyback plan

• Shares of diamond jewellery manufacturer Goldiam International surged over 12% to a new all-time high after the company said its board will meet on 21 July to consider a buyback proposal. The stock has risen over 64% so far this fiscal.
• As on 31 March 2021, the company had cash and cash equivalents of ₹310 crore, which was over 51% of the total assets. Further, the company had an order book of ₹200 crore, which is expected to be executed over the next 4–6 months.

Key data releases this week

Thursday: Initial Jobless Claims (US), Crude Oil Inventories (US)

Sectoral indices (July 7)

Global markets (at 8:00 am)

Fact of the day

In 2019, China passed a law banning minors from playing video games between 10 pm and 8 am, as well as limiting their playtime to 90 minutes a day.

Source: Gizmodo

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