Morning Update for 25 February 2021

Previous closing (24 February 2021)

Nifty50: 14,982 ▲ 274 (+1.8%)

Sensex: 50,781 ▲ 1,030 (+2.0%)

Nifty Bank: 36,452 ▲ 1,335 (+3.8%)

In the news

IOC plans push on alternative energy

• The state-owned oil major plans to tap into the alternative energy segment with two ethanol plants in Telangana, each worth ₹600 crore, reports suggest. The plants will have the capacity to produce 5 lakh litres per day. 
• Plans for a gigawatt-scale battery manufacturing plant—a collaboration with an Israeli company—will also be finalised soon. IOC aims to offer ethanol, methanol along with battery-swapping and charging facilities at its existing fuel stations. The stock closed 0.3% higher yesterday. 

Granules’ migraine drug approved by USFDA

• The Hyderabad-based pharmaceutical company has received USFDA approval for its migraine drug. The over-the-counter drug is a generic version of the Excedrin Migraine tablets made by GlaxoSmithKline. It will be manufactured in the company’s Hyderabad facility.
• The stock closed 0.9% higher yesterday but has declined about 26% from its 52-week high made on 1 December 2020.  

Private banks permitted in govt-related business

• The Finance Ministry announced yesterday that it has allowed all private sector banks to participate in government-related business like collection of taxes, pension payments and small savings schemes. Currently, only a few large private banks are allowed to do so. 
• This creates a level playing field and opens up new business avenues for private (smaller) private banks. Overall, private banks had a positive closing yesterday with Nifty Bank rising by 3.8%.

PLI boost for pharma and IT

• The government will provide ₹22,000 crore worth of sops to the pharmaceutical (₹15,000 crore) and IT hardware (₹7,325 crore) sectors under the production-linked incentive (PLI) scheme. 
• The PLI comes at a time when companies across the world are looking to diversify their manufacturing locations to mitigate their dependence on a single location.

Events of the week

• Thursday: February Derivative expiry (India) Initial jobless claims, pending home sales (US)
• Friday: GDP (India)

Sectoral indices (Previous closing)

Global markets (at 8:30 am today)

Fact of the day

The BSE is the oldest stock exchange in Asia. It was established in 1875.
Source: Reuters

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