Market Update for 20 January 2021 – Adani Green to set up solar plant in Kutch

Crude oil gains on weak dollar

  • Crude oil prices rose over 1% today due to signs of weakness in the US dollar. Further, the new stimulus from the US government is expected to revive growth and boost demand for oil.
  • Meanwhile, the International Energy Agency (IEA) reduced estimates for oil demand in 2021 amid extension of lockdowns in some European countries and fresh lockdowns imposed in certain parts of China.

Gateway Distriparks soars on Q3 results

  • Shares of the logistics service provider were locked in the 20% upper circuit today as its Q3 consolidated net profits nearly doubled to ₹32.6 crore.
  • Strong operating performance led to the rise in profits even as total income grew by a meagre 4% YoY to ₹316.2 crore. Due to a faster-than-expected recovery in exports and imports, the company witnessed improvement in volumes sequentially every month since the beginning of Q3.

Adani Green to set up solar plant in Kutch

  • Shares of the renewable energy producer were upbeat after the company announced that it has commissioned a 150 MW solar power plant in Kutch, Gujarat, three months ahead of schedule.
  • This takes the company’s total operational renewable capacity to 3,125 MW, with an additional 11,670 MW capacity under implementation. The company aims to set up 25,000 MW capacity by 2025. The stock was up 2.3% today.

Federal Bank’s asset quality improves

  • The Kochi-based private bank’s Q3 profits dipped 8% YoY to ₹404 crore. The drop comes primarily due to a two-fold increase in provisioning for bad loans. In contrast, the bank’s total income at ₹3,941 improved 5.4% over the same period last year.
  • The bank’s gross NPAs declined from 2.9% to 2.7%, while net NPAs too were down to 0.6% against 1.6% last year, indicating an improvement in asset quality. The stock gained 2.5% today.

Metals sales boost Hindustan Zinc’s Q3 profits

  • The integrated zinc-lead producer, which is a part of the Vedanta Group, reported a 36% YoY jump in Q3 profits, to ₹2,200 crore. During the same period, revenues from operations grew 28% to ₹5,915 crore.
  • The company said the rise in profits is a result of the increase in sales of metals. Sales of silver rose 66%, zinc by 21% and lead by 25% YoY. Today, the stock saw profit-booking and fell 1.1% after rising over 11% yesterday.