Morning Update for 12 April 2021

Indices at previous closing

Nifty50: 14,834 ▼ -38 (-0.2%)
Sensex: 49,591 ▼ -154 (-0.3%)
Nifty Bank: 32,448 ▼ -334 (-1.0%)

In the news

New restrictions may hurt festive auto sales

• As per reports, the latest set of Covid restrictions in Maharashtra are likely to impact vehicle sales during Navratri and Gudi Padwa, both of which fall in April. 
• Festive periods account for a large share of the annual vehicle sales. Under the new restrictions, auto dealerships may have to remain shut until 30 April. This could leave automotive dealers cash-strapped, and they may need support from financiers and automakers. The Nifty Auto index was down 0.3% on Friday. 

Balrampur Chini raises capex plans for distillery 

• Leading sugar maker Balrampur Chini has revised its capex plans upwards from ₹320 crore to ₹425 crore for its distillery plant. The incremental outgo will mainly cover investment in the ENA plant, higher storage capacity and rise in steel prices.
• The new capacities are expected to commission by December 2022. As per the company, it could deliver an annual revenue of about ₹650 crore and will recover the investment in four years. Its stock closed 0.6% down on Friday. However, it has gained 36% in 2021. 

NLC reports capacity addition in FY21

• The state-owned mining and thermal power company NLC India reported a 517.5 MW capacity addition in FY21. With this addition, the company’s total capacity stands at 6,061 MW.
• During the same period, the Tamil Nadu-based company also ventured into coal mining at its Talabira Mines in Odisha. This is expected to generate an additional 20 million tonnes per annum (MTPA), taking the company’s total mining capacity to 50 MTPA. The stock rose 1.1% on Friday.

Coal India draws up coal evacuation plan

• Reports suggest that Coal India has allocated ₹40,000 crore to ramp up its coal evacuation infrastructure. This has been done with an aim to reduce dependency on coal imports by improving domestic connectivity via transport and storage infrastructure.
• The company will execute 35 projects to improve first-mile connectivity and its coal handling capacity. These projects will be able to handle 405 MTPA of coal by FY24. Amid Friday’s weak market, Coal India’s shares fell 1.5%. 

Evets of the week

Monday: Consumer inflation, IIP (India)
Tuesday: Core CPI (US)
Wednesday: Crude oil inventories (US), Holiday (India)
Thursday: Retail sales, initial jobless claims (US)

Sectoral indices (9 April)

Global markets (at 8:15 am)

What's common between Allen Solly, Peter England, Van Heusen and Louis Philippe? These are all brands sold under Aditya Birla Fashion Retail.
Source: Aditya Birla Fashion Retail

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