January 21, 2021 Analysis

By Prarit
Market Updates

Nifty50 14,706 ▲ 61 (+0.4%)

Sensex 50,042 ▲ 249 (+0.5%)

Nifty Bank 32,680 ▲ 136 (+0.4%)

RIL-Future Group deal gets SEBI nod

The SEBI has approved the ₹24,713 crore deal between Reliance Industries and the Future Group. The approval came through despite Amazon’s plea in the Delhi High Court to stay the deal.
As part of the deal, Future Group will sell its retail, wholesale, logistics, and warehouse businesses to Reliance Retail Ventures (RRVL), a subsidiary of Reliance Industries. Shares of Reliance Industries (+2.3%), Future Retail (+4.9%), and Future Supply Chain Solutions (+4.9%) were trading in the green today.

Market Updates
Market Updates

Bajaj Finance profits plunge

The consumer lending-focused NBFC reported a 29% YoY fall in its net profits, which stood at ₹1,146 crore in Q3 compared to street estimates of ₹1,181 crore. At ₹6,658 crore, its revenues too declined 5% during the same period.
Meanwhile, assets under management increased 4.3% to ₹1.4 lakh crore. Most of its businesses are disbursing 85-100% of last year volumes, except for auto finance which is still lagging. Results notwithstanding, the stock gained 3.2% today but as ceded around 2.6% in January.

Havells profits rise on-demand boost

The electrical equipment maker reported a 39.4% YoY jump in its Q3 standalone revenues to ₹3,166 crore. The sales growth was mainly supported by improved consumer sentiment, festive demand and increased penetration in smaller towns.
Its net profit soared 75% YoY to ₹349 crore mainly due to lower advertisement and sales promotion expenses. Shares of Havells rose (+7%) today and are up 16% so far in January.

Tejas Networks

Shares of the networking products maker jumped () today after it reported Q3 consolidated revenues of ₹134.9 crores, up 56% YoY. Compared to a loss of ₹112 crores in Q3 last year, it delivered a net profit of Rs. 9.2 crore.
Its order book increased by ₹73 crores to 672 crores. The company said that its cash flow position is improving and it currently holds cash and cash equivalents of ₹335 crores with no debt on the books.

Events this week

Thursday: Home First Finance IPO opens (India), Initial Jobless claims (US)
Friday: Reliance Industries results
Sectoral indices

Top gainers Top losers

Nifty IT▲ 1.2%
Nifty Metal▼ 0.6%
Nifty Auto▲ 0.7%

Global markets Today’s movement
Nikkei 225 (Japan) ▲ 0.9%
Hang Seng (Hong Kong) ▲ 0.1%
SSE Composite (China) ▲ 1.3%
Dow Jones (US)
(15 Jan) ▲ 0.8%