Market Update 4 Jan 2020 – Marico gains on optimistic outlook

Alkyl Amines soars on stock-split plans

  • The speciality chemical company will consider a stock split and an interim dividend during its upcoming board meeting. The company also said it aims to set up new projects, including those for manufacturing amines.
  • The stock gained 17.2% today and rallied over 250% in 2020.

Steel stocks upbeat on record volumes

  • Jindal Steel and Power (JSPL) sold 7.1 lakh tonnes of steel in December 2020, its highest ever monthly sales. The company recorded a volume growth of over 25% versus December 2019.
  • Shares of JSPL rose by 6.8%. Further, the recent industry-wide price hikes and upbeat analyst expectations for Q3 earnings augur well for steel stocks such as Tata Steel (+8.3%) and SAIL (+6.8%).

Multiplexes rally on capacity hike

  • Investors lapped up stocks of multiplex operators such as PVR (+4.4%) and Inox Leisure (+6.3%) after the Tamil Nadu state government increased the seating capacity limit from 50% to 100%.
  • The rise in multiplex shares was backed by strong volumes. The move could also nudge other states to relax restrictions.

Marico gains on optimistic outlook

  • Marico’s Indian business (accounting for 77% of revenues) saw a double-digit revenue growth in Q3, as per its quarterly update. Its shares rose 2.6% after the company said that it maintains an optimistic outlook for FY21.
  • A recovery in the consumer sentiment, the festive season and a declining Covid graph were the highlights of the quarter. Further, the company was able to introduce price hikes to beat the inflationary pressure seen in raw materials.