Market Updates from 7-April-2021

Nifty50: 14,683 ▲ 45 (+0.3%)
Sensex: 49,201 ▲ 42 (+0.0%)
Nifty Bank: 32,501 ▼ -177 (-0.5%)

Tata Steel reports sales growth in Q4 

• Tata Steel’s India business recorded sales of 4.67 million tons in Q4FY21, a 16% YoY improvement. Meanwhile, its European business grew 4%. 
• On a full-year basis, the company achieved its highest-ever sales volume. Its shares were down 0.7% on Tuesday but have risen about 34% so far in 2021. 

Cement companies to raise prices

• On account of the strong demand and the rising cost of input materials, analysts expect cement companies to raise prices by ₹15–30 per bag in April. The street believes that the rise in price, coupled with better capacity utilization is likely to improve earnings for the cement companies.  
• The growth in public sector construction activity and a revival in the housing market augurs well for the cement sector. The shares of Ultratech Cement, Shree Cement, Ambuja Cement, and ACC have risen 18–27% so far this year.

Macrotech Developers IPO opens today

• Macrotech Developers, known for its ‘Lodha’ brand, will open its public issue from 7 to 9 April. The real estate developer aims to raise ₹2,500 crore through its maiden offer, which will entirely be a fresh issue.  
• The IPO has a price band of ₹483–486 per equity share and a lot size of 30 shares.

IMF raises India GDP growth forecast

• In its World Economic Outlook, the International Monetary Fund (IMF) said it expects India’s GDP to grow at 12.5% in FY22. It has raised its forecast from 11.5%, which it had predicted in January 2021. 
• At this rate, India would not only be the fastest growing country among emerging economies but also the only country to register double-digit growth. For FY23, GDP growth is pegged at 6.9%.

Global markets (at 8:45 am)

The markets stuttered a bit at the start but then witnessed buying interest throughout the day. Of the Nifty50 constituents, 43 closed in the positive, which suggests that buying was seen across the board.
All the sectoral indices closed in the green, with Nifty PSU Bank (+1.8%) and Nifty Auto (+1.6%) leading the pack.

Titan reports strong revenue growth in Q4

• The jewellery and watch retailer reported a 60% YoY revenue growth in Q4FY21, owing to a low base, improved demand and a dip in gold prices.
• The company said that the jewellery division has emerged very strongly from the crisis and witnessed strong growth in the quarter. At the same time the watches & wearables as well as the eyewear divisions, have also made very good progress on recovery.
• However, the stock was down 0.5% today despite an overall bullish market

IDFC First Bank raises funds via QIP

• Shares of IDFC First Bank rose 4.1% today as the bank announced that it has raised ₹3,000 crore through a QIP at a price of ₹57.35 per share. 
• Further, the bank has also shown improvement in its Q4 performance. Its total customer deposits have increased by 43% YoY and the CASA ratio (ratio of current account and savings account deposits to total deposits) has improved to 52% from 32% last year. A higher CASA ratio is better for a bank as current accounts and savings accounts attract lower interest rates as compared to other deposits.

Rajesh Exports bags designer jewellery deal

• The Bengaluru-based gold retailer has received an order worth ₹745 crore from an unspecified German client. The order is likely to be completed by July 2021. 
• The stock was down 0.3% today and has been consolidating since July 2020. Even in 2021 so far, it is down about 2%. 

Barbeque Nation surges after weak listing

• Shares of the casual dining restaurant chain listed at a 2% discount to its issue price of ₹500. However, after the initial selling pressure, the stock shot up and hit its 20% upper circuit. 
• The stock’s movement suggests that investors have brushed aside concerns arising from regional lockdowns. As per reports, the majority of its revenues come from in-house dining, whereas the takeaway business contributes only about 15% to its revenues.