Nifty50: 16,294 ▲ 35 (+0.2%)
Sensex: 54,492 ▲123 (+0.2%)
After initial weakness, the markets recovered and closed in the positive. The market breadth was nearly even, with 26 of the Nifty50 stocks witnessing gains.
Among the Nifty sectoral indices, Metal (+1.2%) and IT (+0.7%) were the strongest, while PSU Bank (-2.2%) and Media (-1.5%) fell the most.
| Top gainers | Today's change |
| Bharti Airtel | ▲ 3.8% |
| Eicher Motors | ▲ 3.4% |
| ITC | ▲ 3.0% |
| Top losers | Today's change |
| SBI | ▼ 3.2% |
| IndusInd Bank | ▼ 2.3% |
| ICICI Bank | ▼ 1.8% |
Here are the top stories of the day.
Reliance to double PET recycling capacity
Reliance Industries has said that it will double its polyethylene terephthalate (PET) recycling capacity. Srichakra Ecotex India will build and operate this new facility for Reliance Industries in Andhra Pradesh.
This new facility will take Reliance Industries recycling capacity to 5 billion post-consumer PET bottles and help India in maintaining a recycling rate of more than 90%. These post-consumer PET bottles are used as a raw material for manufacturing recycled polyester fiber. Shares of Reliance Industries rose around 1.3% today
Tata Communications’ profit grows, revenues fall
Digital transformation player Tata Communications reported a 15% YoY rise in its consolidated net profit to ₹296 crore. During the same period, revenues contracted nearly 7% to ₹4,103 crore, mainly due to a reduction in the Voice business.
Revenues from the Data business, which contributes over 75% of total revenues, declined 2.2% YoY to ₹3,104 crore. The company said that business was impacted by the second wave during the quarter, but demand is slowly recovering as global markets are opening up. Nonetheless, shares of Tata Communications were down 0.3% today.
Oil prices tumble
Oil prices declined for the third consecutive day on Wednesday, hitting a two-week low. So far this week, crude oil prices are down over 7%. The more than expected rise in US crude inventories and worries over the spread of the Delta variant are creating demand concerns.
Surprisingly, the oil prices fell even though the geopolitical tension continued to increase in the Middle East with Iran reportedly seizing an oil tanker. Usually, the rise in geopolitical tension ends up hurting oil supplies, which leads to a rise in prices.
Closing bell
The market showed signs of jitteriness after a strong rally seen this week, as may be traders inclined to think that profit booking could follow. Further, the RBI will announce its interest rate decision tomorrow, which could lead to some volatility. Basically, the markets are in a completely new orbit and uncharted territory. During such times, if the markets sustain and rise further, it lends to investor confidence. However, any adverse development generally creates an initial panic and sharp drop to critical support levels.
Good to know
What is an interest-coverage ratio?
Interest-coverage ratio reveals whether a company will be able to pay interest on its debt. It is calculated by dividing a company’s earnings before interest and tax by the interest due. A higher interest-coverage ratio is considered to be an indicator that a company is in a strong financial position. Lenders and investors can use it to determine a company’s ability to survive hardships.
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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.