Morning Update for 30 March 2021

Indices at previous closing

Nifty50: 14,507 ▲ +182 (+1.2%)
Sensex: 49,008 ▲ +568 (+1.1%)
Nifty Bank: 33,318 ▲ +311 (+0.9%)

In the news

Adani to acquire Essel’s power project 

• Adani Transmission is set to acquire Essel Infra's Warora-Kurnool power transmission project at an enterprise value of ₹3,370 crore. 
• Reports suggest that after this acquisition, Adani Transmission will have a network of 17,200 circuit kilometres. It plans to expand its network to 20,000 circuit kilometres by 2022. The stock has risen by nearly 16% in March so far. 

HPCL to buy SP Group’s stake in JV

• State-owned HPCL will buy out Shapoorji Pallonji Group’s 50% stake in their 5 mmtpa LNG regasification terminal joint venture. 
• While the acquisition cost is not disclosed by HPCL, reports suggest that the 50:50 JV is building the terminal at a cost of about ₹5,411 crore. Shares of HPCL have seen selling pressure in March and have declined 5.2%, so far.

Minda Industries announces capex plans

• Auto components manufacturer Minda Industries has announced a capex of over ₹250 crore for its four-wheeler business. 
• Of this, ₹90 crore will be used to set up an automotive lighting plant in Gujarat. The rest will be used to increase the company’s alloy wheel capacity at its plant in Haryana. The stock has fallen 4.5% in March so far, but has risen about 36% in 2021. 

Dr Reddy’s expects Sputnik V approval soon

• Pharma major Dr Reddy's Labs expects the Sputnik V vaccine to get approval from Indian regulators in the next few weeks. The company has partnered with the Russia Direct Investment Fund (RDIF) to bring the Sputnik V vaccine to India and other countries. 
• The vaccine has demonstrated an efficacy of 91.6% in trials conducted across the globe. Shares of Dr Reddy’s dropped 0.5% on Friday and have fallen over 15% so far in 2021.

Events of the week

Wednesday: Pending home sales, Crude oil inventories (US)

Thursday: Initial jobless claims, Manufacturing PMI (US)

Friday: Unemployment rate (US), Holiday (India)  

FII/DII data (30 March)

Global markets (at 8:30 am)

Fact of the day

Mohan Meakin, the maker of ‘Old Monk’ rum, is a listed company. Its shares trade on the Calcutta Stock Exchange. 

Source: Mohan Meakin

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