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8 feb (2)

Nifty above 15,000 mark; private banks in demand.

The key equity indices hit record high levels in morning trade, led by strength in private sector banks. The barometer index, the S&P BSE Sensex, was up 684.85 points or 1.35% to 51,416.48. The Nifty 50 index has added 179.50 points or 1.20% to 15,103.75.

The Sensex hit a record high of 51,472.68 and a the Nifty hit a record high of 15,133 in morning trade.

Domestic shares mirrored the gains in other their Asian peers. The rise in risk-assets was induced by improving COVID-19 trends and statement from treasury secretary Janet Yellen, pushing for a stimulus bill. The comments from the treasury secretary came after weaker-than-expected U.S. jobs data on Friday had highlighted the case for further stimulus.

In the broader market, the S&P BSE Mid-Cap index gained 1.31% while the S&P BSE Small-Cap index rose 1.43%.

The market breadth was strong. On the BSE, 1672 shares rose and 855 shares fell. A total of 162 shares were unchanged.

Buzzing Index:

The Nifty Private Bank index rose 1.96% to 19,320.50. The index declined 0.69% in the previous session.

Axis Bank (up 3.11%), ICICI Bank (up 2.69%), IndusInd Bank (up 2.45%), HDFC Bank (up 1.71%), IDFC First Bank (up 1.55%), RBL Bank (up 1.19%), Bandhan Bank (up 1.14%), City Union Bank (up 1.11%), Federal Bank (up 0.84%) and Kotak Mahindra Bank (up 0.60%) advanced.

Earnings Today:

Bharat Petroleum Corporation (BPCL) was up 0.72% ahead of Q3 earnings today.

Aditya Birla Fashion & Retail (up 1.41%), Astrazeneca Pharma (up 0.90%), Balkrishna Industries (up 0.74%), Galaxy Surfactants (up 1.31%), Godrej Consumer Products (up 0.56%), NMDC (up 1.98%), Redington India (up 1.75%), SPARC (up 0.85%), Sun TV (up 0.47%) and Torrent Pharma (down 0.29%) will also announce quarterly earnings today.

Earnings Impact:

Britannia Industries fell 1.27% to Rs 3496.35. On a consolidated basis, Britannia reported 22.3% rise in net profit to Rs 455.75 crore on 5.8% increase in net sales to Rs 3106.10 crore in Q3 FY21 over Q3 FY20.

Commenting on the performance, Varun Berry, MD said, General Trade, which is the largest channel for us, continues to grow at a healthy pace on the back of buoyancy in rural economy and recovery in urban markets. The other channels such as Modern Trade, Institutional business etc continue to face challenges with lower footfalls in stores and offices, schools, railway services coming back to normalcy gradually.

Essentials were at elevated levels of demand at the beginning of the year due to pantry up-stocking which has started to normalize with diversification of purchase basket of the consumers. We continue to focus our efforts on the basic building blocks of our business which include direct reach, rural distribution, range selling, higher throughput, salesmen productivity & invest in enhancing our brand equity through focused product campaigns.

On the cost front, we witnessed moderate inflation in the materials prices except Palm oil where we witnessed a significant increase. We neutralized the inflation by accelerating our cost efficiencies & sustained the new efficiencies that we witnessed during the Covid-19 induced lockdown. These measures helped us record a 260 bps increase in operating profit during the quarter vs. last year.

Going forward, we intend to accelerate the pace of Innovation & new launches, strengthen our distribution infrastructure and continue our focus on brand building to drive growths and market share.

VRL Logistics surged 9.32% to Rs 224 after the company’s board approved a proposal to buyback shares at maximum price of Rs 300 each. The aggregate consideration of the buyback shall not exceed Rs 60 crore. At the maximum buyback price and for the maximum buyback size,, the indicative maximum number of equity shares proposed to be bought back would be 20 lakh equity shares, which is 2.21% of the total number of paid up equity shares of the company.

The minimum amount to be utilized for the buyback shall be Rs 30 crore, being 50% of the maximum buyback size. The buyback price of Rs 300 per share is a 46.4% premium to Friday’s closing price.

VRL Logistics reported 54% jump in net profit to Rs 39.74 crore on a 1.1% rise in net sales to Rs 563.42 crore in Q3 FY21 over Q3 FY20.

Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.

CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.

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