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Market Today with EZWealth – 13 Oct 2021
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Domestic benchmark equity indices hit fresh record highs in the opening tick on Wednesday even as the global market was jittery. Buying continued in auto and realty names while media stocks were under pressure. After opening in the green, benchmark indices continued to gain momentum
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1) China’s Yantian port in Shenzhen suspended pick-up and drop-off of containers as tropical cyclone Kompasu approached the nation’s southern coastline. The number of ships waiting outside the port rose to 67, the most since Aug. 26.
Bottlenecks at container terminals around the world have added to pressure on supply chains already struggling to keep up with demand. Covid-19 outbreaks at ports, along with shortages in shipping containers and labor have exacerbated the problem, with China — the world’s biggest manufacturer — seeing a number of port disruptions this year.
The country has a zero-tolerance approach to the virus, and has shut down port operations on single cases in the past. An outbreak at Yantian in June saw it closed, resulting in falling volumes as far away as the Port of Los Angeles. The Ningbo-Zhoushan port shut for two weeks in August because of a delta variant infection.
2) In the latest move, the government has doubled incentives on sugar sacrificed for producing ethanol from October. India targets to achieve 20% ethanol blending with petrol by fiscal 2024-25. The nation also exported record sugar in the last season. Increased incentives for ethanol, which yields better profit than sugar, along with higher overseas shipments, have aided margins of millers, driving a rally in their shares.
Earlier, the Department of Food and Public Distribution, Ministry of Consumer Affairs released a monthly quota of sugar to be sold for domestic consumption by each miller based on the stock held, export performance and diversion for ethanol. Under the revised plan, the incentive on sugar sacrificed for producing ethanol from B-heavy molasses, sugarcane juice, sugar syrup or sugar has been doubled
3) India is set to receive an investment of about ₹3,300 crore from 31 domestic and multinational companies over a period of four years under the ambitious production-linked incentive or PLI scheme that is expected to employ as many as 40,000 individuals in the telecom sector. Following the incentive package unveiled early this year, proposals from as many as 31 companies that included 16 micro, small and medium enterprises (MSME), seven multinationals and eight domestic players have been approved by the telecom department (DoT). The multinationals included Nokia Solutions and Networks, Foxconn Technology, Flextronics Technologies, Commscope and Jabil Circuit. In addition, HFCL, Tejas Networks, VVDN Technologies, Dixon Electro Appliances, and state-run ITI were among homegrown companies declared eligible under the scheme.
4) While fuel rates stay unchanged, Indraprastha Gas, which retails CNG and piped natural gas, has hiked its prices in Delhi and NCR. The new rates will be effective from today, the gas distribution firm said in a notification. CNG price in Delhi now stands at Rs 49.76 per kg while PNG will be sold for Rs 35.11 per Standard Cubic Meter (SCM), the gas distribution company said. PNG price will cost Rs 34.86 per SCM in Noida, Greater Noida and Ghaziabad. And CNG will be sold at Rs 56.02 a kg.
5) After Air India, the stage is set for strategic sale of state-run Central Electronics Ltd (CEL). The government on Tuesday received financial bids for its stake in the entity. CEL is a pioneer in the country in the field of Solar Photovoltaic (SPV) with the distinction of having developed India’s first Solar cell in 1977 and first Solar panel in 1978 as well as commissioning India’s first solar plant in 1992.
The government will sell its full stake in the firm along with management control. As per the Preliminary Information Memorandum (PIM) of CEL released by DIPAM, interested bidders (which can also include employees of CEL) must have a minimum net worth of Rs 50 crore as on March 2019. The bids have been received and the process now moves to concluding stage.
6) Prime Minister Narendra Modi on Wednesday launched the ‘PM GatiShakti – National Master Plan’ for multi-modal connectivity at Pragati Maidan in the national capital. Prime Minister Modi, who was present at the launch event, reviewed the Gati Shakti master plan and also the model of the new exhibition complex at Pragati Maidan, before launching the plan with the press of a remote button. The ambitious plan envisages a centralised portal to unite the infrastructural initiatives planned and initiated by as many as 16 central ministries and departments.
7) Helped by the ongoing rally in equities, the market capitalisation of BSE-listed companies has reached a fresh record high of Rs 2,70,24,154.49 crore in morning trade on Wednesday. In five trading days, the BSE benchmark index has gained 1,471.02 points. Driven by the ongoing rally, investors’ wealth has also jumped by Rs 8,03,607.44 crore in five days.
8) The Reserve Bank is likely to change the stance of its monetary policy and hike rates from the first quarter of 2022, Nomura said on Monday. The central bank will start with liquidity normalisation moves this month, narrowing the difference between the rate at which it funds the system and at which it absorbs excess liquidity in December, Nomura said. It can be noted that the latest move by the Reserve Bank of India (RBI) last week to narrow the excess liquidity in the system through stated targets is being seen by some as the normalisation of the policy, which has been very accommodative since the onset of the pandemic to boost growth.
The brokerage upped its consumer price index (CPI) inflation target for 2022 to 5.2 per cent from 5 per cent earlier. Demand remains strong in India, but there are supply-side headwinds in areas like chips which is bothering the auto sector and coal shortages which threatens to put parts of the country into darkness, it said.
Stocks in the news:
Shares of Tata Motors surged close to 20 per cent to hit its upper circuit limit in early trading in Mumbai on Wednesday as the auto major said it will raise $1 billion for its passenger electric vehicle business from TPG Rise Climate at a valuation of up to $9.1 billion.
Commercial vehicle maker Ashok Leyland on Monday launched its all-new intermediate commercial vehicle (ICV) ecomet STAR with additional features to cater to 11T to 16T GVW ICV segment.
NTPC is in discussions for a financial rescue of a 3,600 MW thermal power plant in Chhattisgarh that is saddled with ₹30,000 crore in debt, which it is unable to service, according to banking sector executives in the know. The state-owned power giant is looking at a collaboration with banks to rescue KSK Mahanadi Power, a holding company which houses the plant. The collaboration could take the form of a 50:50 joint venture between NTPC and the banks after the former infuses funds into the company, these executives said. State Bank of India is the largest lender to KSK Mahanadi Power with a ₹5,000 crore outstanding loan. It has also invoked the personal guarantees provided by KSK Mahandi Power’s former promoters S Kishore and KA Sastry to recover its dues.
India’s Everest Organics Ltd said had started making the active pharmaceutical ingredient (API) for a generic version of Merck Co’s experimental antiviral drug molnupiravir to treat mild to moderate COVID-19.
Reliance Retail is closing in as the new India franchisee of US fashion brand Gap Inc. Reliance has been in talks with Gap for months and had lately emerged the front-runner to clinch the deal ahead of Myntra that was also in talks with the American fashion apparel brand.
IndusInd Bank and Karur Vysya Bank share prices were up a percent each intraday on October 13 after the Reserve Bank of India (RBI) allowed the two lenders to collect direct and indirect taxes.
Shares of Centrum Capital zoomed 19 per cent in early trade on Wednesday as the RBI issued a licence to Unity Small Finance Bank, a subsidiary of the company, to carry on small finance bank business.
State-owned NLC India is making efforts to ramp coal output from one of its mines in Odisha to up to 10 million tonnes per annum this year. The company aims to increase the coal production to up to 20 Million Tonnes Per Annum (MTPA) from next year onwards, according to a regulatory filing.
Zen Technologies designs develop and manufacture combat training solutions for training of defense and security forces. It is actively involved in indigenization of technologies, which are beneficial to Indian armed forces, state police forces and paramilitary forces
Hero Motocorp has partnered with Gilera Motors Argentina to expand its operations in Argentina, one of the key markets in South America. Gilera Motors Argentina is one of the leading automotive companies in Argentina.
Dr Reddy’s Laboratories has become the first Indian pharmaceutical company to launch an anti-cancer drug in the Chinese market. Abiraterone Acetate, which was launched in the US in 2020, is used in treating prostate cancer
Promoters Vodafone Group Plc and the Aditya Birla Group (ABG) are likely to invest $400 million as fresh equity to aid the financially fragile telecom operator Vodafone Idea[/vc_column_text][vc_column_text]
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