Morning Update for 25 March 2021

Indices at previous closing

Nifty50: 14,549 ▼ -265 (-1.7%)
Sensex: 49,771 ▼ -871 (-1.7%) 
Nifty Bank: 33,293 ▼ -891 (-2.6%)

In the news

Adani Transport wins Telangana highway project

• Adani Road Transport, a subsidiary of Adani Enterprises, has won a ₹1,039 crore contract from the NHAI in Telangana. The project involves four-laning sections of the NH 365A, and is expected to be completed in two years. 
• Shares of Adani Enterprises fell 3.6% yesterday, but have risen 23% so far this month.

Auto price hikes may be inadequate

• On account of rising input costs, auto majors Maruti and Hero Motocorp have announced price hikes starting from April. Hero will raise prices on its two-wheelers by about ₹2,500, while Maruti’s price hikes will vary from model to model.
• Meanwhile, analysts believe that the hike in prices will be insufficient to compensate for the increase in metal prices. This might hurt the margins of automakers. The Nifty Auto index closed 2.5% lower.  

Glenmark gets USFDA nod for antipsychotic drug

• The pharma major has received USFDA approval for its chlorpromazine hydrochloride tablets. The drug is a generic version of GSK's Thorazine tablets, used in the treatment of psychotic disorders. 
• According to industry estimates, in the US, thorazine tablets had annual sales of nearly $108.6 million for the 12 months ending 31 January 2021. The stock closed 1.3% lower today and has fallen 7% so far this year.

Crude oil prices rebound

• After a sell-off seen on Tuesday due to demand concerns, US crude oil prices rebounded yesterday with equal vigour. The rise in prices came even as inventories grew. 
• The grounding of a container ship in the Suez canal blocked traffic and raised concerns of crude oil supply disruptions. This sent crude oil prices soaring by 6% yesterday.

Events of the week

• Thursday: GDP Q4, Initial jobless claims (US)

Sectoral indices (24 March)

Global markets (at 8:30 am)

Fact of the day

Audio brand JBL gets its name from its founder James Bullough Lansing, who also founded Altec Lansing. 

Source: JBL

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