Morning Update for 2 September 2021

Indices at previous closing

Nifty50: 17,076 ▼ -55 (-0.3%)
Sensex: 57,338 ▼ -214 (-0.3%)
Nifty Bank: 36,574 ▲149 (+0.4%)

In the news

IPOs witness mixed reception

The first day of the IPO window proved to be a mixed bag for September’s opening IPOs. The nearly ₹570 crore IPO of Ami Organics got subscribed 1.9 times. Oversubscribed over 2.8 times, Its retail portion was received strongly, while QIB and HNI quotas were subscribed around 1.4 times and 0.4 times respectively.

Meanwhile, Hyderabad-based Vijay Diagnostic’s ₹1,895 crore issue received a tepid response with a 30% subscription on Day 1. Institutional and retail quota got subscribed 0.23 times and 0.43 times, with the HNI section getting subscribed just 1%. Both IPOs close on 3 September, and you can subscribe to them via Upstox here. 

NMDC’s production soar

The government-owned company’s iron ore production rose by 44% year-on-year to 15 million tonnes (MT) between April and August this year. In the same period, the sales also increased by 45% to 15.6 MT.  

However, this comes at a time when iron ore prices are falling due to weakness in the Chinese economy and curbs on the output. China is one of the biggest consumers of iron ore in the world. Meanwhile, the shares of NMDC were down 1% yesterday and have fallen around 21% over the last month.

Two-wheeler sales lukewarm in August 

In August, Hero Motocorp’s sales dropped 22% YoY. However, the company is hopeful about sales in the coming months on account of the upcoming festival season and decent monsoons. 

In comparison, Bajaj Auto reported a 5% YoY growth, while TVS reported nearly flat sales growth. Shares of Hero Motocorp closed unchanged yesterday, while Bajaj Auto and TVS gained about 1% each. 

Sectoral indices (September 1)

Global markets (at 8:00 am)

Fact of the day

Bluetooth is named after the 10th Danish king Harold “Blåtand” Gormsson. He loved blueberries so much that his teeth were perpetually blue. “Bluetooth” is an anglicized version of his nickname.

Source: Business Insider

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