Morning Update for 16 March 2021

Indices at previous closing

Nifty50: 14,929 ▼ 101 (-0.6%)

Sensex: 50,395 ▼ 397 (-0.7%)

Nifty Bank: 35,182 ▼ 314 (-0.8%)

In the news

Steel shortage may hurt auto production

• According to industry body SIAM, a supply crunch due to labour issues at Posco’s Maharashtra plant could hurt production for automakers. Except for one day, there have been no dispatches since 4 March. 
• If the situation persists, carmakers may have to partly suspend production. Posco’s auto clients include Maruti Suzuki, Tata Motors and Mahindra & Mahindra. The industry is already facing a semiconductor shortage. The Nifty Auto index was down (-0.4%) yesterday.  

Adani Ports to build container terminal in Colombo

• Adani Ports will jointly develop and operate the West Container Terminal (WCT) in Colombo, Sri Lanka. Currently, 45% of Colombo port’s transshipment either originates from or ends at an Adani port terminal in India. 
• The company expects to derive network benefits from the WCT along with its 7 container terminals at 12 ports along the Indian coast. Shares of Adani Ports were down 1.8% yesterday, but are up nearly 50% in 2021. 

Allcargo aims for stake in Container Corp

• Mumbai-based Allcargo Logistics is in talks with foreign investors to buy a stake in state-owned Container Corporation of India (Concor). 
• According to reports, the government is looking to divest up to 30% (out of 55%) of its stake in Concor and is likely to invite bids shortly. Since the start of the year, shares of Allcargo have been consolidating, while those of Concor have risen nearly 40%.

Strides Pharma gets USFDA nod

• Strides Pharma’s Singapore-based wholly-owned subsidiary has received USFDA approval for potassium chloride for oral solution, which is used for prevention and treatment of low levels of potassium in blood. 
• As per IQVIA data, the US market for this oral solution is about ₹400 crore. The company plans to manufacture the product at its Bengaluru facility and market it in the US. Shares of Strides gained nearly 1% yesterday.

Events of the week

• Tuesday: Retail sales (US)
• Wednesday: Fed interest rate decision, crude oil inventories (US)
• Thursday: Initial jobless claims (US)

Sectoral indices (15 March)

Global markets (at 9:00 am today)

Fact of the day

Originally called Blue Ribbon Sports, Nike gets its name from the Roman goddess of victory. It was originally set up to be the official U.S. distributor for Japanese running shoes.
Source: Interesting Engineering

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