Market Update and News Bulletin: 16/09/2021

Market Update

▫️Indian markets touched all time high yesterday, backed by government announced schemes for auto and telecom sector.

▫️Sensex and Nifty ended the day at 58,723 (+0.82%) and 17,519 (+0.80%).

▫️Nifty Midcap and Smallcap performed in line with the frontline benchmark and ended the day with a gain of 1.02% and 0.65%. While market breadth was strong, with Advance Decline of 1172:646.

▫️All sectors looked strong and participated in the yesterday’s rally, except Media.

▫️Rupee rose during the later half of the day and closed 18 paisa stronger at 73.50, on hopes of foreign investment after the government announced schemes.

▫️Oil prices rose and topped $75/barrel (Brent), as US oil inventories fell more than expected and on rising demand expectations. Oil price rally may still continue until supply side disruption eases.

▫️Gold prices moved up by ₹238 to ₹47,255, due to rising covid cases in China and rising investors interest for safe heaven asset.

▫️US indices closed in positive driven by rally in energy stocks due to higher oil prices and positive developments in the economy.

▫️This morning US futures are trading flat while Asia is trading mixed. SGX Nifty is down by 0.10%, reflecting subdued start for the Indian markets.

News Bulletin

▫️As highlighted yesterday, the Cabinet has now approved ₹26,000 crore PLI scheme for clean tech auto investments.

▫️ Similarly, the relief package for Telecom sector was also approved, which includes deferral of payment schedule, removal of penalty, scrapping of spectrum usage charges, re defination of AGR charges, etc. (This will provide cash relief of ₹88,000 crores to VIL over 4 year provide, however real revival of the Company can only happen if it is able to pump in fresh funds)

▫️India is considering to restart vaccine exports.

▫️Govt is seeking $109 billion valuation for the country’s largest IPO and will sell stake in the range of 5-10%.

▫️JSW energy to invest ₹35,000 crores in renewable energy.

▫️5G spectrum auction likely in Feb’22.

▫️Pepsi opened its largest plant in India yesterday, in Mathura, Uttar Pradesh.

▫️Apple to start selling its new Iphone in India on Sep 24, prices start from ₹69,000. (Reddington India in focus)

▫️Ola is selling 4 electric scooters every second as per the Company founder (Negative development for 2-wheeler companies)

▫️Light Commercial Vehicle market to see double digit growth in FY22 (Tata Motors, Ashok Leyland to benefit)

▫️ Glenmark concluded its study on Covid drug, Favipiravir.

▫️ Coal India’s pending dues fall from ₹22,000 crores to ₹16,840 crores in August.

▫️China’s factory output and sales growth hit lowest in 1 year in August, due to fresh Covid concerns.

▫️RBL restarted credit card issuance with Visa, after Mastercard ban.

▫️ Govt. to sell 10% stake in Hindustan Copper.

▫️Tata Group and Spicejet in race for Air India sale.

▫️Infosys partnered with enterprise application software leader SAP.

▫️ Mutual Fund’s exposure to auto stocks hit 17 month low.

▫️Federal Bank may partner with Fintech companies to grow business.

This is for educational purposes only.

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