Morning Update for 2 July 2021

Indices at previous closing

Nifty50: 15,680 ▼-41 (-0.2%)
Sensex: 52,318 ▼-164 (-0.3%)
Nifty Bank: 34,684 ▼-88.20 (-0.2%)

In the news

RBI expects bad loans to rise

• According to an RBI report, gross non-performing assets (GNPAs) of banks are expected to rise to 9.8% of the overall loan book in the current financial year. In comparison, the GNPAs stood at 7.4% in March 2021. Lenders have been hit by a fresh wave of bad loans due to the pandemic-induced slowdown.
• In the worst-case scenario of severe stress, the Indian central bank estimates that GNPAs can spike to 11.2%. However, the RBI has said that the banks have enough capital buffer to tide over the rise in NPAs. Meanwhile, the Bank Nifty has risen by over 4% in this fiscal. 

L&T bags ‘significant’ orders

• Engineering behemoth Larsen & Toubro (L&T) has bagged ‘significant’ orders, which are in the range of ₹1,000 crore to ₹2,500 crore. It’s water and effluent treatment business has won a repeat order from the Uttar Pradesh government. 
• It also received an order from a reputed developer to construct residential towers with a built-up area of 4.3 million square feet in Mumbai. Shares of L&T were down 0.3% yesterday.

Zydus Cadila seeks nod for Covid vaccine

• Zydus Cadila has requested emergency use approval (EUA) for its three-dose, “needle-free” ZyCoV-D Covid vaccine. The company claims that its vaccine is 66.6% effective against symptomatic cases.
• It also says the vaccine is safe for children aged between 12 and 18 years, and is effective against the new mutant strains, especially the Delta variant. The company plans to manufacture up to 12 crore doses of the vaccine annually. Meanwhile, shares of Cadila Healthcare closed 0.9% lower yesterday. 

Sectoral indices (July 1)

Global markets (at 8:00 am)

Fact of the day

Three Chinese manufacturers—CIMC, DFIC and CXIC—supply about 80% of the world's shipping containers.

Source: Freight Waves

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