Morning Update for 23 August 2021

Indices at previous closing

Nifty50: 16,450 ▼ 118 (-0.7%)
Sensex: 55,329 ▼ 300 (-0.5%)
Nifty Bank: 35,033 ▼ 520 (-1.4%)

In the news

Cadila’s vaccine gets DGCI nod

The Drug Controller General of India (DGCI) has granted emergency use approval to Cadila Healthcare’s ZyCoV-D vaccine. The indigenously developed, DNA-based vaccine is the first of its kind to be approved for administration in children above 12 years of age.

The vaccine is administered in three doses, each separated by 28 days. Interestingly, it is a needle-free vaccine ensuring painless vaccine delivery. Further, it is stored at 2-8 degree C, but has also shown stability at higher temperatures. The company aims to supply up to five crore doses by January-end 2022. The stock was down 1.5% on Friday, and has declined nearly 9% so far this month. 

Arvind Fashions raises funds 

The Ahmedabad-based denim and textile major has raised ₹439 crore from promoters and marque investors by issuing equity shares. The shares have been allotted to the investors at ₹218.50, at an 8% discount of the stock’s closing on Friday.

The company states that the funds will be used to strengthen its balance sheet, pursue business growth and also insulate the company from pandemic-related uncertainties. The stock declined 5% on Friday, but has gained 14% in August. The fundraising was announced over the weekend. 

Oil plunge amid demand concerns

Oil prices dropped nearly 9% last week, hitting their lowest in the last three months. With the new cases surging across the world, there are concerns over fuel demand.

Many nations including the largest importer of crude oil China have started imposing restrictions on movements in the wake of the spread of the Delta variant. Experts believe this uncertainty has made it hard for oil prices to find support. The crude oil market has witnessed a drop in prices for the last seven consecutive days.

Sectoral indices (August 20)

Global markets (at 8:00 am)

Fact of the day

Einsteinium is a cryptocurrency used to raise capital for scientific research. It goes by ticker EMC2. 

Source: Einsteinium

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