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Markets end up 0.2% up, Hero and Mahindra’s Q3, Pfizer stays away for now , & more

The markets end up by around 0.2%. The Sensex did cross the 51,000 mark today for the first time though it ended the day blow that. This week has been good for the markets as they recovered from the recent downward trend and went on to touch new all-time highs.

SBI: The bank’s Q3 came out yesterday. Its performance has excited investors. It hit the upper circuit today.
Dr Reddy’s: The company is manufacturing the Sputnik vaccine which showed good results in its trials.

Tata Motors: The passenger vehicle (PV) division of Tata Motors has piled up losses to the tune of Rs 11,173 crores as at end of June 2020, a notice to the company’s shareholders stated.

Q3: Hero Moto and Mahindra & Mahindra (M&M)

Hero MotoCorp

The consolidated net profit of Hero Moto for the October to December quarter (Q3) was Rs 1,019.18 crores: a 13% rise from the same quarter in 2019. The revenue from operations rose 38.9% to Rs 9,827.05 crores. The company sold 18.45 lakh units in Q3, a growth of 19.7%. The company’s board has declared an aggregate interim dividend of Rs 70 per share. The record date is February 16. The share price of the company ended 0.33% lower at Rs 3,429.2 per share.

Mahindra & Mahindra

The consolidated net profit of the company(including Mahindra Vehicle Manufacturers) was up 40% to Rs 531 crores. The company registered a one-time loss of Rs 1,213.98 crores due to asset impairment. M&M’s revenue from operations rose 16% on year to Rs 14,057 crores. The company’s tractor sales were up 20% to 97,420 tractors in the domestic market. The share price of the company was down 0.12% to Rs 865.5. The results were declared after markets closed.

RBI Monetary Policy: Repo Rates Unchanged, Online Access to Gsecs

The Reserve Bank of India maintained the repo rate at 4% and also its accommodative stance.

Other Key Highlights:

The RBI will provide retail investors with online access to the government securities market – both primary and secondary – directly through the Reserve Bank. The platform will be called Retail Direct. RBI is setting up a centralized industry-wide 24×7 helpline for digital payment services.

What is repo rate and reverse repo rate?

Repo rate is the rate at which banks borrow money from the RBI. The reverse repo rate is the rate at which the RBI borrows money from banks. Both of these are tools RBI uses to control the supply of money in the system. These methods are used to stimulate the economy.

Pfizer Withdraws Application in India

Pfizer has withdrawn its application for emergency use of its vaccine in India. It said that in its meetings with the regulators in India, it was required to submit additional information. The company said they will return to apply for use again in the future. Pfizer was the first company to seek approval in India. The Pfizer vaccine was anyway not a major candidate for use in India as it requires being stored at 70 degrees below 0 (Celcius) – a difficult to maintain target given India’s climate and supply chain network. It was also much more expensive when compared to the ones that were approved for use in India. Pfizer’s vaccine has primarily been bought by western nations like the USA, UK, and European nations. Even if granted approval, it was unlikely that Pfizer would be able to supply large quantities of the vaccine in India.

Stove Kraft Listed 21-29% Premium Today

Stove Kraft got listed at Rs 467 per share on the BSE today. This is a premium of 21.3% over its issue price. On the NSE, the shares listed at Rs 498 per share, up 29.35% from the issue price. The issue price was Rs 385 per share. The share price ended 15.83% higher at Rs 445.95 per share on the NSE.

This information contained in this newsletter is purely for knowledge. This newsletter does not contain any recommendations or advice

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