News Bulletin and Market Update: 18/10/2021

News Roundup

▫️India Inc. Q2 results till now suggests handsome economic recovery on all major areas.

▫️State government has maintained strong capital expenditure during the first 5 months of FY22, on back of higher tax revenues.

▫️ Infrastructure tender activity grew by 22% in Q2, led by roads, power distribution and equipment sector.

▫️The government is planning a major revamp of textile industry.

▫️Surge in natural gas prices have raised input cost of certain industries exponentially. These firms may resort to increase their output prices.

▫️Coal India clarified that it has not completely stopped the supply of coal to non-power companies, rather it has regulated the same.

▫️Global iron ore prices have cooled down from $214 per tonne in June to $125 per tonne in October. However, supply side crunch is still there.

▫️Firms reported a bumper start to festive season in Navratri, with double digit growth in consumer durable segment.

▫️So far in October, FPIs have pulled out ₹1,472 crores from equities as ruppee depreciated.

▫️ China’s energy crisis will be a blessing for Indian chemical and steel firms.

▫️Petrol and Diesel prices have touched record highs, after subsequent price hikes, and now costs 30% more than jet fuel.

Market Update

▫️Indian markets were closed on last Friday, on account of Vijay Dashmi Holiday. On Thursday, markets ended on a positive note, backed by positive global cues and swift domestic economic revival.

▫️Sensex soared by 0.94% to end at closing peak of 61,306. While Nifty surged by 0.97% to new closing lifetime high of 18,338.

▫️ However, market breadth was in favour of bears, as advance decline ratio stood at 889:940.

▫️All sector indices ended in positive territory, except Auto which is severely affected by chip shortage. Banking, Financial Services and Metal gained the most during the session.

▫️Ruppee recovered for the 2nd consecutive session, with a gain of 11 paise and closed at 75.26.

▫️Gold prices continue to rise and is close to touching the ₹48k mark, backed by festive season demand and inflation worries. Further, gold imports jumped multifold to $24 billion in Apr-Sep.

▫️ Crude oil prices have rise sharply, led by fast economic revival and surge in prices of other forms of energy. WTI Crude is now trading above $82.5 mark.

▫️Dow Jones closed with gain of more than 100 points on Friday, on account of positive economic data.

▫️ Today morning Dow Futures are mostly flat. Whereas Asia is trading mixed, followed by slightly weak SGX Nifty.

▫️F&O Ban: IRCTC, IDEA, IBULHSGFIN, BHEL, SUNTV and BANKBARODA.

This post is for educational purposes only.

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