Morning Update for 16 September 2021

Indices at previous closing

Nifty50: 17,519 ▲+139 (+0.8%)
Sensex: 58,723 ▲+476 (+0.8%)
Nifty Bank: 36,852 ▲+239 (+0.65%)

In the news

Oil stocks high on rising crude oil prices

Shares of oil-exploration companies  ONGC and Oil India rose around 4% yesterday as the prices of crude oil continued their upward trajectory. The industry data shows that the crude oil inventory has dropped in the US as hurricanes impact supply. 

At the same time, the demand for oil is expected to improve as vaccination drives pick pace across the world. In the wake of this global economic rebound, analysts expect oil price realisation to improve for domestic oil companies. 

Shree Cement rises on expansion plans

Shree Cement’s shares rose by 2% intraday yesterday after its board approved a bunch of expansion plans. The company plans to increase its clinker and cement grinding capacity. It will also invest in setting up a 106 megawatt solar power plant. 

These slew of expansion plans are expected to cost the company around ₹4,750 crore and will be funded through a mix of equity, internal accruals and debt.  Meanwhile, Shares of Shree Cement pared some gains and closed 1.1% higher.    

Dabur hikes hair oil prices

The FMCG major increased prices of its hair oil products in the range of 2% to 7.5%, according to the reports. This price hike has been taken due to rise in raw material prices such as crude oil and its derivatives.

The management has said that it is facing unprecedented commodity inflation but expects it to gradually moderate later this year. Meanwhile, shares of Dabur were down 0.2% yesterday but have risen about 8% over the last one month.   

Sectoral indices (September 15)

Global markets (at 8:00 am)

Fact of the day

In May 1893, a local pharmacist in the US’ North Carolina Caleb Bradham invented the original formula for Pepsi-Cola. This popular beverage was first called Brad’s Drink.

Source: Pepsicares

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Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.