Stock market recap for 28 january 2021
Nifty50: 13,817 ▼ 149 (-1.0%)
Sensex: 46,874 ▼ 535
(-1.1%)
Among the sectoral indices, the Nifty Bank gained 0.2%. Meanwhile, the Nifty Realty and Nifty IT fell 2.2% and 2.1%, respectively.
|
Top gainers |
Today's change |
|
Axis Bank |
▲ 5.5% |
|
SBI |
▲ 2.6% |
|
Indian Oil |
▲ 1.5% |
|
Top losers |
Today's change |
|
HUL |
▼ 3.6% |
|
Maruti |
▼ 3.4% |
|
Wipro |
▼ 3.0% |
STOCK MARKET RECAP
Festive demand boosts Maruti’s Q3
Cost-reduction efforts and higher other income pushed up the net profits, which rose 24.1% to ₹1,941 crore. Despite the strong Q3 performance, the stock witnessed selling pressure and fell 3.4% today.
IDBI Bank emerges strong
in Q3
An 89% YoY decline in
bad loan provisions helped the public-sector lender to record net profit
of ₹378 crore in Q3. A year ago, the Mumbai-based bank
reported losses of ₹5,763 crore.
The net interest
income increased by 18% to ₹1,810 crore during the same period. The bank’s net
NPA stood at 1.9% compared to 5.2% last year, suggesting an improvement in
asset quality. In the upcoming Budget, the government
is also likely to announce its divestment plans for IDBI Bank, Shares of IDBI
closed 1.8% higher today, amid a weak market.
Cosmo Films surges on strong profit growth
The packaging films
maker reported a nearly 75% YoY surge in
net profit to ₹63 crore, supported by better operating margins and inventory
gains. Net profit rose despite a marginal 1% YoY decline in sales.
Investors were upbeat
as the company also declared an interim dividend of ₹25 per share, which
translates to a dividend yield of 5%. This is the most generous dividend
declared by the company in the last 20 years. The stock rose 12.6% today.
Gold demand falls to record lows in 2020
In 2020, the demand
for gold in India dropped 35% YoY to a 25-year low of
446 tonnes, as per the World Gold Council. That said, an over 20% rise in gold
prices helped soften the blow, value-wise.
The fall in demand was
attributed to lockdowns and high prices. However, the scenario improved in
the December quarter as the festive period and the upcoming wedding season
helped revive demand. Meanwhile, gold prices have been consolidating for the
last three weeks.
The Dow Jones fell over
2% yesterday as investors felt that there is over-excitement in the markets.
This is especially true given the frenzied buying in certain stocks by retail
traders, leading to hedge funds getting squeezed. Taking cues from the US markets,
Indian markets were weak today and suffered a fifth consecutive day of decline.
The tension over the farm bills is getting prolonged and amid this, net selling
by foreign investors (who were largely buyers until recently) over the last few
days is being seen as a negative sign. While the market does expect the
upcoming budget to be pro-growth, the selling seen over the last few days gives
a feeling that much of it is priced in.
Good to know
What
is a rights issue?
A rights issue is an
invitation to existing investors to purchase more shares of the company. Rights
issues are priced lower than stock’s current market price. Investors not
wishing to subscribe to the rights issue can sell their rights through the
rights entitlement trading platform on the stock exchange or via an off-market
transaction.
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Disclosures and Disclaimer
Investment in securities markets are
subject to market risks; please read all the related documents carefully before
investing. The securities quoted are exemplary and are not recommendatory. Past
performance is not indicative of future results. Details provided in the above
newsletter are for educational purposes and should not be construed as
investment advice by RKSV group. Investors should consult their investment
advisor before making any investment decision.
Labels: Market Recap
posted by JAVED CHILLIMUTTUR @ January 28, 2021
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