Market Update for 9 July 2020 – Kitex soars on Telangana apparel unit plans

Kitex soars on Telangana apparel unit plans

  • Shares of Kitex Garments surged 20% today on the buzz that the company is planning a major investment in Telangana. According to reports, the company said that it has received an invitation from the Telangana government to set up an apparel unit in the state, promising attractive incentives.
  • The company, which claims to be the world’s second-largest manufacturer of infant wear, had earlier said that it is withdrawing its plan to invest ₹3.500 crore to set up apparel and industrial parks in Kerala, alleging harassment by the authorities.

Bharat Dynamics bags missile contract

  • The defence manufacturer yesterday announced that it has bagged a contract worth ₹499 crore from the government to manufacture and supply Akash missiles to the Indian Air Force.
  • The company also said that it is exploring the option to export Akash missiles to foreign countries and has also received some leads. Meanwhile, the company’s order book currently stands at ₹8,683 crore, which is 4.5 times its FY21 revenue. After rallying as much as 7% intraday, shares of Bharat Dynamics pared most of the gains and closed 1.6% higher.

General insurers see strong Q1 growth

  • According IRDAI data, general insurance companies reported a 13.8% year-on-year growth in their gross direct premium income to ₹44,434 crore in the June quarter. This growth was driven by the motor and health insurance segments.
  • Among the general insurers, standalone health insurance companies reported an industry-beating growth of 55%. This comes at a time when the pandemic has given a boost to the health insurance segment. Meanwhile, shares of only listed general insurer ICICI Lombard rose 0.3% today.

JSW Steel reports surge in production

  • India’s largest steel company by market capitalisation announced that its standalone steel production jumped 39% year-on-year in the June quarter. At a consolidated level, the growth was much higher at 65%. 
  • The company said its plants ran at 91% capacity during the quarter as compared to 93% in the March quarter. The lower capacity utilisation was due to the shortage of oxygen, because the company prioritised supply of liquid oxygen for medical purposes. Meanwhile, shares of JSW Steel were upbeat and rose 2% today.