Indices at previous closing
Nifty50: 15,751 ▲+81 (+0.5%)
Sensex: 52,328 ▲ +228 (+0.4%)
Nifty Bank: 35,545 ▲ +152 (+0.4%)
In the news
MRF’s quarterly profit shrinks
- Leading automotive tyre maker MRF reported a 51% YoY drop in its March quarter profits. The drop looks big especially when seen in light of the 31% rise in revenues. However, the corresponding quarter last year had a large deferred tax credit.
- At the profit before tax level, the growth is a strong 48%. Notwithstanding the sharp improvement in PBT numbers, the stock fell 3% yesterday. As per the management, while the second wave has affected the business, it is expected to get back to normalcy in about two months.
Central Bank’s asset quality worsens
- State-owned Central Bank of India witnessed deterioration of its asset quality in Q4. The gross NPA went up to 16.55% of the loan book from 16.30% in the December quarter.
- The net interest income (NII) also dropped sequentially by 32% to ₹1516 crore. The fall in NII and an increase in provisioning led to a loss of ₹1,349 crore in Q4. Despite weak results, the stock was up almost 8% yesterday due to the buzz of privatisation.
VA Tech Wabag reports strong Q4
- Shares of VA Tech Wabag jumped 6.2% yesterday, after it reported a 53% jump in consolidated net profit for the March quarter. The water treatment major also saw its revenues rise over 27% to ₹999 crore. The profit growth was aided by a reduction in interest costs and tax expenses.
- The company said that It has an order book of ₹9,500 crore, which is over 3 times the annual revenue. It has also managed to reduce its gross debt by 33% during FY21 and has turned around from net debt to net cash at the group level.
Union Bank of India’s profit soars
- Government-owned Union Bank of India’s net profit went up by 83% quarter-on-quarter to ₹1,330 crore. The reasons for the spike in profits was the surge in other income and fall in provisioning for bad loans. The provisions dropped from ₹4,584 crore in Q3 to ₹3,850 crore in Q4.
- But the net interest income fell by 18% to ₹5403 crore. The lender’s gross NPAs rose from 13.4% of the loan book to 13.7%. Its stock closed 0.4% higher yesterday.
Sectoral indices (7 June)
| Top gainers | Top losers |
| Nifty Media ▲ 1.1% | Nifty Metal ▼ 0.4% |
| Nifty IT ▲ 1.1% | Nifty Realty ▼ 0.2% |
Global markets (at 8:15 am)
| Indices | Today's movement |
| SGX Nifty | ▲ 0.5% |
| Nikkei 225 (Japan) | ▲ 0.3% |
| Hang Seng (Hong Kong) | ▲ 0.1% |
| SSE Composite (China) | ▲ 0.3% |
| Dow Jones (US) (2 June) | ▲ 0.0% |
Fact of the day
In 1996, Larry Page and Sergey Brin decided to name their company Googol (referring to specific large numbers), which got changed to Google because of a typo!
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