Gold demand falls to record lows in 2020
- In 2020, the demand for gold in India dropped 35% YoY to a 25-year low of 446 tonnes, as per the World Gold Council. That said, an over 20% rise in gold prices helped soften the blow, value-wise.
- The fall in demand was attributed to lockdowns and high prices. However, the scenario improved in the December quarter as the festive period and the upcoming wedding season helped revive demand. Meanwhile, gold prices have been consolidating for the last three weeks.
Cosmo Films surges on strong profit growth
- The packaging films maker reported a nearly 75% YoY surge in net profit to ₹63 crore, supported by better operating margins and inventory gains. Net profit rose despite a marginal 1% YoY decline in sales.
- Investors were upbeat as the company also declared an interim dividend of ₹25 per share, which translates to a dividend yield of 5%. This is the most generous dividend declared by the company in the last 20 years. The stock rose 12.6% today.
IDBI Bank emerges strong in Q3
- An 89% YoY decline in bad loan provisions helped the public-sector lender to record net profit of ₹378 crore in Q3. A year ago, the Mumbai-based bank reported losses of ₹5,763 crore. The net interest income increased by 18% to ₹1,810 crore during the same period.
- The bank’s net NPA stood at 1.9% compared to 5.2% last year, suggesting an improvement in asset quality. In the upcoming Budget, the government is also likely to announce its divestment plans for IDBI Bank, Shares of IDBI closed 1.8% higher today, amid a weak market.
Festive demand boosts Maruti’s Q3
- India’s leading passenger carmaker reported a 13.2% YoY rise in net sales to ₹22,367 crore. The rise in sales could be due to the festive season push, customers’ preference for personal mobility and some early buying in December in the anticipation of a price hike in January.
- Cost-reduction efforts and higher other income pushed up the net profits, which rose 24.1% to ₹1,941 crore. Despite the strong Q3 performance, the stock witnessed selling pressure and fell 3.4% today.