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Market Today with EZWealth – 6 Oct 2021
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Benchmark Indices trade negative amid cool-off; NIFTY, after opening gap-up, couldn’t sustain the move higher and a sudden ease of is evident in most of the sectoral indices. As of 1:45PM, Nifty stood at 17742, down 80 points from open.
1) Coal-fired power stations have an average of four days’ worth of stock of the fuel, according to the latest data, and more than half the plants are already on alert for outages. Power Minister Raj Kumar Singh has warned that the nation could be handling a supply squeeze for as long as six months.
Power shortages are already emerging, and the gap between available electricity supply and peak demand widened to more than 4 gigawatts on Monday, according to government data from power ministry. While shortages of coal in China, and that nation’s power crunch, have commanded most attention, it’s India that’s facing a potentially worsening scenario.
Industrial and domestic consumption usually hits peak levels as India enters a festival season from later in October and that could risk stalling a rebound in Asia’s third-biggest economy, which has been recovering from an unprecedented 7.3% contraction in the fiscal year ended in March.
State-run Coal India Ltd., the world’s top producer of the fuel, is seeking to increase daily coal supply to 1.9 million tons by mid-October from about 1.7 million tons currently, an increase that would go a long way to help ease the deficit. Deliveries to power plants are currently short by between 60,000 and 80,000 tons a day, according to Anil Kumar Jain, India’s coal secretary.
2) Centaline filed a suit against Evergrande in September to recover HK$3.1 million ($398,196) in overdue commissions, a court filing showed, while the South China Morning Post newspaper reported Midland Holdings is claiming unpaid commission of HK$43.45 million for two developments in Hong Kong.
An executive at Centaline China told Reuters they have also filed a suit against Evergrande in a Guangzhou court in southern China, seeking to claim hundreds of millions of yuan it says it is due.
Centaline confirmed to Reuters it filed a claim in Hong Kong last month, but declined to comment further. Midland declined to comment, saying the case was going through legal procedures. Evergrande did not immediately respond to a request for comment.
Hong Kong’s exposure to debt-laden developer China Evergrande is “very minimal” at 0.05%, or HK$14 billion ($1.79 billion) of banking assets and will not cause any systemic risks, the newspaper reported on Sunday, citing the city’s Financial Secretary Paul Chan.
3) India is considering a proposal for foreign investors to own as much as 20% in Life Insurance Corporation, according to a person with knowledge of the matter, which would enable them to participate in the nation’s biggest initial public offering. Under discussion is a plan to amend FDI rules so that investors can pick up the stake without the government’s approval under the so-called automatic route, the person said. Prime Minister Narendra Modi’s government is relying on money from the state-run insurer’s IPO to meet its budget deficit target for the financial year through March 2022 as the pandemic hit tax collections. While FDI of as much as 74% is permitted in most Indian insurers, the rules don’t apply to LIC because it is a special entity created by an act of parliament.
4) The price of domestic LPG cylinders has been hiked by Rs 15. The price of a non-subsidized 14.2 kg cylinder in the capital is now Rs 899.50. A 5 kg cylinder will now cost you Rs 502. The new rates are effective from today. The hike comes after fuel price raise yesterday. Petrol and diesel prices were hiked across metros after a day’s pause. In the national capital, petrol price has been increased by 25 paise from Rs 102.39 per litre to Rs 102.64 a litre and diesel has become dearer by 30 paise from Rs 90.77 per litre to Rs 91.07 per litre.
5) India’s largest iron ore producer NMDC, has lowered prices by around Rs 250-Rs450 a tonne for October deliveries, marking the third reduction after back-to-back increases. Coking coal prices, however, remain elevated.
“Due to rising iron ore prices, which just softened and skyrocketing coking coal prices, Indian steel mills are witnessing a jump of at least Rs 9,000 – Rs 10,000 a tonne of increase in the cost of production, ” ArcelorMittal Nippon Steel India’s chief marketing officer Ranjan Dhar told ET.
Data from steel research and analysis firm SteelMint showed that NMDC iron ore prices are currently at around Rs 4,750 a tonne for Baila fines with Fe 64% and prices are at Rs 6,910 a tonne for fe 67% iron ore lumps. Prices of coking coal surged to $410 a tonne in the past week, more than three times since early 2020. Analysts and industry players estimate the fall in iron ore prices to have little impact on steel prices and domestic HRC prices, now at Rs 67,000 a tonne.
6) The government may set up a task force to tackle the semiconductor shortage. The task force will also suggest incentives to be given for companies to set up semiconductor plants in India. Manufacturing a chip typically takes more than three months and involves giant factories, dust-free rooms, multi-million-dollar machines, molten tin and lasers. “From January 2021, the problem only got worse. Right now, probably, we are at the peak, in terms of shortages and loss of production. We believe Q2 and Q3 are going to be pretty difficult for the industry. We believe, from January, the pressure will ease off a little bit with further easing happening in August-September next year,” said Vikram Mohan, Managing Director at Pricol.
7) Bharti Airtel and Ericsson on Tuesday said they have conducted India’s first 5G network demonstration in a rural geography, in Bhaipur Bramanan village on the outskirts of Delhi NCR, using 5G trial spectrum allocated to Airtel by the Department of Telecommunications (DoT). The trial showcases the massive potential offered by 5G towards bridging the digital divide by enabling access to high-speed broadband through solutions such as enhanced mobile broadband (eMBB) and fixed wireless access (FWA) services, the companies said.
Over the past few months, Airtel and Ericsson have partnered to demonstrate enhanced speeds of more than 1Gbps on a live 5G network set up at Cyber Hub in Gurugram using Airtel’s 3500 MHz trial spectrum. Earlier in January also, the two companies showcased Ericsson’s spectrum sharing capabilities on a commercially deployed installed base of 1800 MHz liberalised frequencies in Hyderabad to give consumers their first experience of 5G from a live commercial network.
8) India added 18,833 new Covid infections, taking the country’s tally of Covid-19 cases to 3,38,71,881, while the active cases declined to 2,46,687, the lowest in 203 days, according to the Union Health Ministry data updated on Wednesday. The death toll climbed to 4,49,538 with 278 fresh fatalities, according to the data updated at 8 am.
Stocks in the News:
The AU Small Finance Bank share price edged higher in the morning session on October 6 as the lender’s total deposits grew 45 percent over the last year to Rs 39,034 crore in the second quarter of 2021-22.
Vedanta Group’s founder Anil Agarwal said the company will look to bid for buying government’s stake in Hindustan Copper as and when the state-owned firm is put up for privatisation.
Shares of Marico % shot up 4.7 per cent in early trading on Wednesday after the fast-moving consumer goods heavyweight gave upbeat revenue growth numbers for the July-September quarter in an exchange filing on Tuesday.
Force Motors’ share price added 5 percent in the morning trade on October 6 after the company’s reported improved sales and production in September. The company produced 2,159 units in September 2021, up from 2,148 in the previous month
Godrej Consumer Products share price rose over a percent in the early trade on October 6 after the company said it expected a double-digit sales growth in India in the September quarter driven by higher volume and calibrated price increases
IT service provider Tata Consultancy Services (TCS) on Wednesday announced that its partnership with India’s largest lender State Bank of India (SBI) has been extended for another five years to drive innovation and tech solutions.
ICICI Bank today announced the launch of a contactless payment service through its banking app, iMobile Pay, that enables customers to tap their smartphones to pay at POS (Point of Sale) machines of merchant outlets. The service offers improved convenience to over 1.5 crore debit and credit card customers of the Bank as they will no longer need to carry their car[/vc_column_text][vc_column_text]
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