Morning Update for 15 March 2021

Indices at previous closing

Nifty50: 15,030 ▼ 143 (-0.9%)

Sensex: 50,792 ▼ 487 (-0.9%)

Nifty Bank: 35,496 ▼ 441 (-1.2%)

In the news

Cement sector likely to witness growth

• According to ACC, the domestic cement sector is likely to witness over 10% YoY growth this year. The sector witnessed a 10–12% degrowth on account of the pandemic-induced economic slowdown. 
• However, the government’s push towards affordable housing and infrastructure-heavy projects is likely to revive demand for cement. Stocks of cement majors such as ACC, Ultratech and Shree Cement have risen in the range of 10–25% so far in 2021. 

AC makers bump up prices

• Backed by pent-up demand, continuance of remote working and expectation of a hot summer, air conditioner (AC) makers expect high double-digit growth this year.
• Most AC makers expect demand to remain firm even as they hike prices by 3–8% in the light of increase in raw material prices. Shares of Voltas and Bluestar have gained 27% and 18%, so far in 2021.

Govt to sell entire stake in Tata Comms

• The government plans to sell its entire 26.12% stake in Tata Communications, which is valued at around ₹9,601 crore. 
• Initially, 16.12% of the stake will be sold as an offer for sale. The remaining 10% will be sold to Panatone Finvest, the investment arm of Tata Sons. Shares of Tata Communications, formerly VSNL, have risen over 550% in FY21. 

Inflation rises higher than expected

• Consumer inflation for February stood at 5.03%, up from 4.06% in January (versus expectations of 4.8–5.0%). The figure was at a three-month high, pushed up mainly by rise in fuel and transport costs.  
• Analysts believe that unless taxes on fuel are cut, the inflationary pressure is likely to persist, ruling out any chances of interest rate cuts. Meanwhile, the Index of Industrial Production (IIP) came in at -1.6%, against the expectation of 0.9%.

Events of the week

• Monday: Wholesale inflation (India)
• Tuesday: Retail sales (US)
• Wednesday: Fed interest rate decision, crude oil inventories (US)
• Thursday: Initial jobless claims (US)

Sectoral indices (9 March)

Global markets (at 9:00 am today)

Fact of the day

BMW was originally an aircraft manufacturing company. After WW1, it shifted to motorcycle production, and followed by making cars in 1929.
Source: BMW

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