Morning Update for 13 September 2021

Indices at previous closing

Nifty50: 17,369 ▲ 15 (+0.0%)
Sensex: 58,305 ▲ 54 (+0.0%)
Nifty Bank: 36,683 ▼ 85 (-0.2%)

In the news

Chip shortage hits JioPhone launch

The launch of Reliance Industries’ JioPhone Next is likely to be postponed to November. The phone was originally scheduled for launch on 10 September. 

The production of the phone, co-developed with Google, has been delayed amid the global semiconductor chip shortage. Meanwhile, shares of Reliance hit their lifetime high of ₹2,480 last week, and have risen about 7% so far in September. 

CNG prices likely to rise

As per market experts, prices of cooking gas and CNG are likely to witness a rise of about 10-11% since the government-dictated price is set to be hiked. Prices of natural gas produced by companies such as ONGC are set by the government every six months, and the next revision is due on 1 October. 

A price hike is likely to come into effect in metros such as Mumbai and Delhi due to higher gas costs for distributors such as IGL and MGL. Shares of IGL have risen about 3% so far this month, while MGL is up by around 2%.  

Inflation data to drive the markets

The retail and wholesale inflation data will be declared today and tomorrow, respectively. In July, the retail and wholesale inflation had eased to 5.5% and 11.1%, respectively. This trend is likely to continue for August. 

The street expects retail inflation to remain flat and wholesale inflation to drop to 10.7% as supply problems ease with further opening up of the economy.  This is expected to be one of the key factors which could drive the markets this week, according to the analysts. After scaling new heights, Nifty50 took a breather last week and was up 0.2%. 

Sectoral indices (September 9)

Global markets (at 8:00 am)

Fact of the day

Sir Hugh Beaver (1890—1967), MD of Guinness Brewery once had an argument about the fastest game bird in Europe. He failed to find an answer in any reference book, which gave him the idea to set up the Guinness Book of World Records. 

Source: Guinness World Records

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