Morning Update for 1 September 2021

Indices at previous closing

Nifty50: 17,132 ▲ +201 (+1.1%)
Sensex: 57,552 ▲ +662 (+1.1%)
Nifty Bank: 36,424 ▲+76 (+0.2%)

In the news

RIL looks to acquire European solar major

In its drive to shift to renewable energy, the Mukesh Ambani-led company is reportedly in talks to acquire Europe-based REC Group. It is one of the largest solar panel manufacturers in that region. RIL is likely to acquire the company for $1-1.2 billion. 

Earlier in August, Reliance announced a $50 million investment in Ambri Inc, a battery storage company from Massachusetts, USA. These investments indicate the company’s move toward expanding its presence in the renewable energy ecosystem. RIL shares were down 0.5% yesterday, but have risen about 11% in August. 

Chip shortage to halve Maruti’s production

India’s largest carmaker has said that its production will be cut down to 40% of the normal output in September. This is due to the global semiconductor shortage, which has been hurting automakers for months. 

The company said in a filing that the chip shortage is expected to hurt its production facilities in Haryana and its contract manufacturing company SMG in Gujarat. Meanwhile, shares of Maruti Suzuki were up 0.5% yesterday.

India’s Q1 GDP up on low base  

India’s GDP grew by a record 20.1% year-on-year in the June quarter. This sharp growth was driven by a very low base of June 2020, a revival in consumption and an improvement in manufacturing.  

In comparison, the country’s GDP had contracted by 24.4% in June quarter last year due to the country-wide lockdown. Before the release of numbers, the Nifty50 Index rose by 1.1% yesterday, touching a new lifetime high. 

Sectoral indices (August 31)

Global markets (at 8:00 am)

Fact of the day

Bluetooth is named after the 10th Danish king Harold “Blåtand” Gormsson. He loved blueberries so much that his teeth were perpetually blue. “Bluetooth” is an anglicized version of his nickname.

Source: Business Insider

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