Morning Update for 9 June 2021

Indices at previous closing

Nifty50: 15,739 ▼-12 (-0.0%)
Sensex:  52,275 ▼ -52 (-0.1%)
Nifty Bank: 35,085 ▼-358 (-1.0%)

In the news

Inox to raise ₹300 crore via QIP

• India’s second-largest multiplex chain, Inox Leisure plans to raise ₹300 crore through qualified institutional placements (QIP). The company said that it has fixed a price of ₹315.25 per share for the QIP, which is about 7% below yesterday’s closing price.  
• The multiplex chain reportedly plans to use the money for capex, working capital and debt management. Inox’s net debt currently stands at ₹55 crore. The stock reacted positively to the announcement and rose 2.6% yesterday.

Hester Bio's profits soar in Q4

• The animal healthcare company reported a whopping 77% year-on-year growth in net profit for the March quarter. This was supported by a 52% growth in operating revenue during the same period.
• The poultry healthcare segment saw a 57% surge in revenue, whereas the animal healthcare segment grew by 17%. The company expects both segments to grow faster going forward as it plans to expand its product range and enter new territories. The stock dipped 0.4% today, but has risen 43% so far this fiscal year.

World Bank slashes India’s GDP estimates

• The World Bank has revised India’s GDP growth estimates for FY22 to 8.3% from 10.1% earlier. The estimates have been cut in view of the adverse impact of the second wave on economic activities.
• The bank warned that the pandemic will undermine consumption and investment in India as consumer confidence remains depressed and balance sheets are damaged. Last week, the RBI had also slashed its GDP forecast for India to 9.5% from 10.5% earlier. 

General insurance sector to grow cautiously

• India's general insurance space is expected to grow by 7–9% in the current financial year, according to the rating agency ICRA. This comes after the growth slowed down to 4% in FY21 due to the pandemic-triggered lockdowns.
• The growth in FY22 is expected to be driven by the health segment and revival in motor insurance. Shares of ICICI Lombard, the sole listed general insurance player, was up almost 2% yesterday.  

Sectoral indices (8 June)

Global markets (at 8:00 am)

Fact of the day

In 1970-71, India's personal income tax had 11 tax brackets, ranging from 10% to 85%. With the surcharge of 10%, the maximum tax rate was a whopping 93.5%!

Source: Business Today

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