Morning Update for 18 March 2021

Indices at previous closing

Nifty50: 14,721 ▼ 189 (-1.2%)

Sensex: 49,801 ▼ 562 (-1.1%)

Nifty Bank: 34,229 ▼ 575 (-1.6%)

In the news

BHEL bags large NPCIL order

• The state-run heavy engineering company has emerged as the lowest bidder for Nuclear Power Corporation’s 4,200 megawatt project. 
• The contract for the nuclear power plant is pegged at ₹10,800 crore. The stock closed 7% lower yesterday, but the news of the deal came after market hours.   

Airline passenger volumes decline

• In February 2021, domestic air passenger volumes stood at 78 lakh, down 37% YoY.
• Although passenger volumes have been rising month-on-month, the second wave of Covid could pose a challenge to the airline business. Shares of Indigo (-2%) and Spicejet (-18%) have been on a decline in 2021. 

Godrej Prop bullish on residential sector 

• Godrej Properties plans to launch a total of 10 projects in Q4FY21, and is betting big on the growth of the residential real estate segment. 
• To leverage the potential boom in the segment, the company has raised ₹3,750 crore through a QIP, which it will use to buy more land for residential projects. However, the stock has ignored the company’s strong outlook and fallen 10% this month.  

US Fed keeps rates near-zero

• The US Fed believes that the bump in inflation will be short lived and will moderate in 2022. It aims to keep near-zero interest rates at least through 2023. 
• The outlook buoyed investor sentiments. The Dow Jones extended its ongoing rally and ended at record high levels. Meanwhile, Treasury yields, which saw a mild correction around the Fed meeting, have also resumed their upward journey. 

Events of the week

• Thursday: Initial jobless claims (US)

Sectoral indices (17 March)

Global markets (at 9:00 am today)

Fact of the day

Produced first in 1932, the RE Bullet 350, is today the longest running motorcycle to be in continuous production.
Source: Royal Enfield

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