Morning Update for 17 February 2022

Indices at previous closing

Nifty50: 17,322 ▼30 (-0.1%)

Sensex: 57,996 ▼145 (-0.2%)

Nifty Bank: 37,953 ▼216 (-0.5%)

For more updates on F&O, click here.

Burger King rises on QIP closure

On Wednesday, Burger King India announced the closure of its qualified institutional placement (QIP), raising ₹1,402 crore. The floor price for the issue was ₹139 per share. 

Marquee investors including BNP Paribas Arbitrage and Fidelity Investment Trust participated in the QIP. This comes at a time when the company is trying to expand its footprint. Following this announcement, shares of the quick service restaurant chain rose by 6% and closed at ₹139.9 yesterday.

VIP Industries to hike prices

According to reports, homegrown luggage major VIP Industries has said that it is likely to hike prices by at least 5% in March or April this year. The management has reportedly said that the price hike will help in improving margins. 

The profitability of the company has been impacted by rising raw material prices. With the Omicron threat waning, the management is upbeat about future prospects and expects business to reach pre-pandemic levels this year. Meanwhile, shares of VIP Industries were up 3% yesterday.

High inflation due to unfavourable base: RBI

The Indian central bank has attributed the increase in prices in December 2021 to an unfavourable base effect. However, it added that the larger buffer stock of cereals and effective supply-side measures augur well for food inflation, which has remained elevated. 

It’s important to note that the RBI kept the key rates unchanged at the recent meeting despite high inflation. Meanwhile, the Nifty50 continues to be volatile.

Sectoral indices (February 16)

Global markets (at 8:00 am today)

Fact of the day

Global consumer electronics maker Nokia was named after a place in Southern Finland.

Source: Techspot

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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.