Morning Update for 9 July 2021

Indices at previous closing

Nifty50: 15,727 ▼-151 (-0.9%)
Sensex: 52,568 ▼-485 (-0.9%)
Nifty Bank: 35,274 ▼-497 (-1.3%)

In the news

TCS posts muted results for Q1

• For the June quarter, India’s largest IT services provider reported a 2.6% sequential decline in its consolidated net profit to ₹9,008 crore. The drop in profit was mainly due to a decline in other income and a rise in employee expenses.
• Meanwhile, revenue from operations grew by 3.9% sequentially to ₹45,411 crore. Both revenue and profit were below street expectations. The company said that the second wave impacted sequential growth in India and Asia Pacific. The India business registered a 14.1% decline, while the Asia Pacific business grew at a slower rate of 2.4%. Shares of TCS declined 0.6% yesterday, but the results were declared after market hours.

Tractor sales to rise in FY22

• Tractor sales are expected to grow at a slower pace of 3–6% in the current financial year over the high base of last year, according to India Ratings and Research. In comparison, tractor sales had jumped by 27% last year. Improved rural wages, normal monsoon and strong Kharif harvest could aid tractor sales.  
• However, the ratings agency has warned that the sales growth will be flattish if the country witnesses a third wave. Shares of tractor makers like M&M, Escorts and VST Tillers Tractors were down between 0.2% and 1.1% yesterday.

Print media to emerge stronger

• The print media industry is estimated to grow by 35% in FY22, according to rating agency CRISIL. The ad revenues of print media are expected to improve from the current quarter as the economy recovers from the pandemic. 
• Also, despite a sharp rise in newsprint costs, profitability is expected to improve to 9–10%, owing to sharp cost-cutting measures and digitisation of content. Meanwhile, shares of HT Media (-2.0%), DB Corp (-1.0%) and Jagran Prakashan (-0.5%) were down yesterday amid a weak broader market.

Sectoral indices (July 8)

Global markets (at 8:00 am)

Fact of the day

The most expensive type of salt in the world is Korean bamboo salt, which costs nearly ₹30,000 per kg.

Source: Indiatimes.com

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