New Week boost
Hello! With the markets being so upbeat, it is easy to forget that today is Monday. Clapping along to this happy start of the week is ShareChat, Indian social media and networking app, which reportedly raised $300 million from Google.
And if you are not a fan of the rainy season that brings
along muddy puddles or canceled trains, you might want to change your mind. The
weather office has predicted a normal monsoon this year. This not only means
relief from the scorching heat, but also a possible drop in food inflation.
well apart from the post if you want to understand the finance in more depth I suggest you to go through the one of our recommend resource here if you want
Today’s Action
The markets extended their gains for the third straight session on positive global cues. Nifty50 also broke out of a consolidation phase seen in May.
In all, 45 of the Nifty50 stocks closed in the green.
Market sentiments are upbeat ahead of the first quarter
(Jan-Mar 2022) GDP data announcement on Tuesday.
All of the Nifty sectoral indices closed on a positive
note with Realty (+4.0%) and IT (+3.8%) witnessing the highest gains.
NIFTY50 16,661
308 (+1.8%) SENSEX 55,925 1,041 (+1.9%)
|
Gainers |
Losers |
|
M&M 4.9% ⇧ Titan 4.9% ⇧ Infosys
4.6% ⇧ |
Kotak Bank 2.0%⇩ JSW Steel 1.9%⇩ Sun Pharma 1.6%⇩ |
PSU banks
Public sector banks doubled their net profit in FY22, as per reports. The total net profit of the 12 major state-owned banks jumped by a whopping 110% year-on-year (YoY) to about ₹66,500 crore. Clean-up of bad loans and economies of scale achieved after merging several banks helped improve the performance. Meanwhile, the Nifty PSU Bank index is up 3% compared to a 4% decline in the Nifty50, so far in 2022.
Timken’s
profit
Shares of bearings maker Timken India rose 14% intraday, after the company reported strong Q4 results. Its profit increased over 128% to ₹121 crore on the back of strong operational performance. Meanwhile, revenue jumped by nearly 40% to ₹667 crore. The company serves automotive, automation and renewable energy sectors which have shown improvement in performance in the recent quarters.
Shriram Properties
Shares of the South-India based realtor soared 13% intraday as its revenues shot up 91% sequentially to ₹205 crore and profit jumped nearly five-fold to ₹64 crore. The performance was driven by income from its properties in Kolkata, Visakhapatnam and Bengaluru. It was also able to improve profitability by cutting down debt (utilising IPO money) and thereby lowering interest costs. The company has a strong launch pipeline with 17 potential projects in FY23.
Crude Oil
Crude oil prices hit an 11-week high as the EU nations are expected to come to an agreement on banning Russian oil imports. Brent crude prices have topped $120 per barrel, set for the sixth consecutive monthly gain. Global supply disruptions and a decline in US stocks are also fueling the spike in oil prices.
Steel exports cool off
India’s steel exports in April declined by 22% YoY. This
was due to a slow down in key markets and competitive prices. This comes on the
back of a 25% YoY growth in FY22. Meanwhile, the Nifty Metal index is down
nearly 17% so far this month.
M&M Sales
Auto major Mahindra & Mahindra (+4.9%) was the top
gainer in the Nifty 50 pack on Monday. Investor interest was high as its
standalone business (auto and tractors) reported a five-fold rise in profits to
₹1,292 crore. Profits were aided by a 43% year-on-year rise in the number of
vehicles sold.
The company consolidated its position in the market as
the top SUV maker by revenue with a nearly 18% market share in the March
quarter. Similarly, it was also the leader in the tractors segment with a 40%
market share, up 1.8% in FY22.
The management was upbeat about the business prospects
with over 170,000 open bookings, with nearly 45% of them for its highly successful
XUV700 model. Improvement in semiconductor supplies and pent-up demand are
expected to boost sales.
The company also announced a dividend of ₹11.55 per
share, up 32% from last year. M&M’s shares have outperformed the Nifty Auto
index and are up by over 20% this year (Nifty Auto index has risen by 5%).
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