Morning Update for 22 March 2021

Indices at previous closing

Nifty50: 14,744 ▲ 186 (+1.2%)

Sensex: 49,858 ▲ 641 (+1.3%)

Nifty Bank: 34,161 ▲ 304 (+0.9%)

In the news

Government raises minimum flight fares

• The government has raised the minimum air fares by 5% due to the rise in prices of aviation turbine fuel. However, the maximum ticket fare along with the 80% capacity limit remains unchanged.
• So far in March, shares of Spicejet have fallen 13%, while those of Indigo have risen about 3%.   

Bharat Dynamics bags large defence order

• Bharat Dynamics (BDL) has bagged a ₹1,188 crore contract from the Ministry of Defence for the supply of anti-tank guided missiles.
• As per the deal, BDL will supply 4,960 units of the MILAN-2T missiles for the Indian Army. The BDL stock has fallen nearly 1% so far this month. 

Essential medicines to get dearer

• The government has allowed a marginal price hike in essential medicines such as painkillers, anti-infectives and antibiotics, in line with the 0.5% change in the wholesale price index (WPI). 
• However, due to a 15-20% increase in manufacturing costs, pharmaceutical companies seek a 20% hike in prices. The Nifty Pharma index has fallen about 7.4% so far this year.   

Crude oil shows mixed movements

• Prices of US Crude oil rose 3% on Friday but contracted 6% on a weekly basis. The new wave of the Coronavirus in Europe and resulting lockdowns are likely to result in a drop in demand for fuel. 
• Meanwhile, back home, India is planning to strategically reduce oil imports from Saudi Arabia and could increase the same from other Gulf countries and the US, as per reports.

Events of the week

• Monday: Existing home sales (US)
• Tuesday: New home sales (US)
• Wednesday: Crude oil inventories (US)
• Thursday: GDP Q4, Initial jobless claims (US)

Sectoral indices (19 March)

Global markets (at 8:30 am)

Fact of the day

Launched in 1999, Tata Indica was India’s first car to be designed and manufactured in India.

Source: Financial Express

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