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Think Ahead with EZWealth – 13 Oct 2021
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The Indian stock market is expected to open firm as trends on SGX Nifty indicate a flat to positive start for the index with a 43-points gain.
October 12, the benchmark indices as well as broader markets ended at record closing highs. The BSE Sensex remained strongly above the 60,000-mark, rising 148.53 points to 60,284.31, while the Nifty50 hit the 18,000-mark for the first time on Tuesday, climbing 46 points to close at 17,992.
US stocks finished lower on Tuesday, extending losses late as investors grew more jittery in the run up to third-quarter earnings, while a jump in Tesla shares helped support the market. The Dow Jones Industrial Average fell 117.72 points, or 0.34%, to 34,378.34, the S&P 500 lost 10.54 points, or 0.24%, to 4,350.65 and the Nasdaq Composite dropped 20.28 points, or 0.14%, to 14,465.93.
Asian indices were trading mixed with Straits Times and Kospi gaining 1 percent each, while Taiwan Weighted and Shanghai Composite are trading flat.
Trends on SGX Nifty indicate a flat to positive opening for the index in India with a 43-points gain.
Foreign institutional investors (FIIs) net sold shares worth Rs 278.32 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 741.22 crore in the Indian equity market on October 12
1) Bharat Biotech’s Covaxin will become the world’s first Covid-19 vaccine approved for use in children as young as 2 years. The expert panel advising India’s drug regulator on Tuesday recommended granting emergency use authorisation to the vaccine for children in the 2-18 years age group.
The Hyderabad-based company has been asked to submit data on any adverse event following vaccination every 15 days for the next two months. It has also been told to update the package inserts, fact sheet, and summary of product characteristics for its vaccine pack.
Bharat Biotech said it was awaiting further regulatory approval from the Central Drugs Standard Control Organisation (CDSCO) before the company could launch the product for children. The Subject Expert Committee (SEC) has submitted its recommendation to the drug regulator, and a formal approval from the Drugs Controller General of India (DCGI) is expected after he examines the data and the recommendation.
2) The Centre has asked thermal power generators to import coal for at least 10 per cent blending, citing shortage of domestic coal supply. This is a sharp reversal of its earlier directive of using domestic coal. The mandate to use imported coal for blending came two days after the coal and power ministers denied any shortage of domestic coal.
At the same time, it alleged that “several states” were selling unallocated power from central generating stations on power exchanges “at a high price” and would be penalised.
3) Falling for the third day in a row, the rupee weakened further by 16 paise to end at 75.52 against the U.S. currency on Tuesday, weighed down by a strong greenback in the overseas market and firm crude oil prices. At the interbank Foreign exchange market, the local currency opened at 75.41 and witnessed an intra-day high of 75.16 and a low of 75.66 against the U.S. dollar in the day trade. The local unit finally settled at 75.52 a dollar, down 16 paise over its previous close. On Monday, the rupee slid by 37 paise to close at a 15-month low of 75.36 against the U.S. dollar. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 % up at 94.33.
4) The Consumer Price Index (CPI)-based inflation rate fell to a five-month low of 4.35 per cent in September, from 5.59 per cent in the previous month, as food prices rose at a significantly lower pace of 0.68 per cent, compared to 3.11 per cent over this period, revealed the official data by the National Statistical Office on Tuesday.
This justified the accommodative stance of the Reserve Bank of India’s monetary policy committee (MPC). A part of the fall in inflation rate can also be explained by the rise in the base effect to 7.27 per cent in September 2020, from 6.69 per cent in the previous month.
However, the inflation rate in fuels rose to 13.63 per cent in September, from 12.94 per cent in the previous month. Within food items, vegetable prices fell at a much faster rate of 22.47 per cent in September, compared to 11.68 per cent in the previous month. Oils and fats saw inflation rate rising to 34.19 per cent, from 33 per cent in this period.
5) Industrial output not only grew at a faster clip at 11.9 per cent in August, compared to 11.5 per cent a month ago, it also rose 3.9 per cent, compared to pre-pandemic levels, revealed the data released by the Ministry of Statistics and Programme Implementation on Tuesday.
However, double-digit growth in industrial production can be attributed largely to the impact of a low base. Factory output in volume terms – measured by the Index of Industrial Production (IIP) – contracted 7.1 per cent in August last year due to disruption caused by the Covid-19 pandemic.
Cumulative growth in April-August (2021-22) was 28.6 per cent, compared to a contraction of 25 per cent in the same period a year ago. Manufacturing sector output, which accounts for more than 77 per cent of the entire index, grew 9.7 per cent year-on-year (YoY) in August, compared to a contraction of 7.6 per cent last year. On a sequential basis, it contracted moderately at 0.5 per cent.
Growth in electricity generation stood at 16 per cent YoY in August, compared to 1.8 per cent contraction a year ago, but witnessed 2.2 per cent growth sequentially. Mining activity, which accounts for over 14 per cent of the entire index, grew 23.6 per cent YoY, compared to a contraction of 8.7 per cent, but witnessed degrowth of 0.8 per cent sequentially.
Consumer durables output witnessed 8 per cent growth in August, compared to a contraction of 10.2 per cent during the same period last year. Consumer non-durables output witnessed degrowth of 5.2 per cent in August, compared to a contraction of 3 per cent last year.
Capital goods output – reflective of the private-sector investment scenario – grew 19.9 per cent, compared to 14.4 per cent contraction last year.
Stocks in the news today:
Infosys, MindTree, AB Money among the companies that will announce their September quarter results today.
Private equity firm TPG’s Rise Climate Fund has decided to invest Rs 7,500 crore (around $1 billion) in the newly incorporated wholly-owned subsidiary of Tata Motors to expand its passenger electric mobility business, the Tata Group firm said on Tuesday. Abu Dhabi’s ADQ will be a co-investor, Tata Motor’s investor presentation said. Tata will form a separate electric mobility subsidiary Tata EVCo in which TPG and ADQ will make the investment at an implied equity valuation of up to $9.1 billion for a 11-15% stake in next 18 months.
Airlines will be able to operate at 100 per cent capacity from October 18, with the civil aviation ministry lifting all restrictions on domestic flight movements. These curbs were imposed when airlines resumed operations after a Covid-induced break last May. However, the government is yet to remove the fare caps. Currently, airlines are operating at 70-75 per cent capacity while passengers carried each day are between 60-70 per cent of the pre-pandemic level.
The government on Tuesday announced a net subsidy of Rs 28,655 crore on phosphatic and potassic (P&K) fertilisers for the October-March period of this fiscal year to ensure that farmers get nutrients at affordable prices during the rabi sowing season. the per kg subsidy rates of N (nitrogen) has been fixed at Rs 18.789, P (phosphorus) Rs 45.323, K (potash) Rs 10.116 and S (sulphur) Rs 2.374, according to an official statement. The NBS rate, which was hiked in June for kharif season (April-September), has been extended till March 2022, according to sources.
Reliance Industries: Subsidiary Reliance New Energy Solar (RNESL) and Denmark-based Stiesdal A/S signed a cooperation agreement for technology development, and manufacturing of Stiesdal’s HydroGen Electrolyzers in India. Separately, NexWafe GmbH announced the induction of RNESL as a strategic lead investor in its 39 million ($45 million) euro Series C financing round with an investment of 25 million euro in phase one.
Jain Irrigation Systems: Employees Retirement System of Texas – Self Managed Portfolio acquired 25,57,922 equity shares in the company at Rs 49.63 per share on the NSE, the bulk deals data showed.
Zee Entertainment Enterprises: The media major said Invesco, its single largest shareholder, had itself come with a proposal in February this year for a merger of the company with certain entities owned by a large Indian group (Strategic Group) with inflated valuation “by at least Rs 10,000 crore”.
IndusInd Bank: The bank has been authorised by RBI to collect Direct and Indirect Taxes on behalf of the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC).
Bhansali Engineering Polymers: The company approved the Brown Field ABS expansion project at existing plants i.e. Abu Road (Rajasthan) & Satnoor (Madhya Pradesh) for enhancing overall ABS production capacity to 2,00,000 tonnes per annum with approximately capex of Rs 500 crore, to be funded through reserves and surplus which shall be implemented tentatively by December 2024.
Vipul: The company has signed and entered a joint venture agreement with Tulip Infratech, for assigning of all development rights to carry out all developments activities in relation to residential project namely ‘Aarohan Residences’ at Golf Course Road, Haryana.
Centrum Capital: The Reserve Bank of India issued licence to Unity Small Finance Bank, a step-down subsidiary of the company, to carry on small finance bank business.
BLS International: The tech-enabled services company said it has been authorised by the Embassy of Brazil in India for visa application processing. Under the mandate, the company will be accepting visa applications from centers in Delhi and Mumbai.[/vc_column_text][vc_column_text]
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