Morning Update for 28 June 2021

Indices at previous closing

Nifty50: 15,860 ▲+70 (+0.4%)
Sensex: 52,925 ▲+226 (+0.4%)
Nifty Bank: 35,364 ▲+537.65 (1.54%)

In the news

Renuka Sugars to ramp up ethanol capacity

• Leading sugar manufacturer has announced that it will invest ₹450 crore to expand its ethanol capacity. This marks the company’s second ethanol capex announcement in 2021 and will double its total capacity. The optimism comes in the backdrop of the government advancing the target of blending 20% ethanol in petrol by 2023. 
• Further, on Friday, the company reported a net profit of ₹114 crore in Q4. In comparison, the company had made a loss of ₹167.5 crore in March 2020, marred by forex loss. Shares of the company gained 5% on Friday and have risen around three-fold this fiscal.

Finolex Industries posts strong Q4

• Leading plastic pipe maker reported its highest-ever quarterly revenue which grew at 62.5% year-on-year. The revenue growth was supported by higher polyvinyl chloride (PVC) revenue (it makes its own raw material) and superior price per unit in the pipes segment. 
• The strong revenue growth helped profits zoom 434%. It is a zero net debt company. On a closing basis, its shares ended at its highest-ever point, on Friday. The results were declared after market hours.  

Oil prices continue to rise

• Oil prices have continued their upward trajectory, scaling up to their highest since October 2018. The OPEC+ and its allies' cautious approach towards production coupled with the expectation of growing demand is fueling the rise in oil prices. 
• The US crude oil prices went up 3.5% last week and closed around $74 per barrel. Meanwhile, the shares of oil explorers ONGC and OIL India have risen by 18% and 28% respectively in this fiscal.

Key data releases this week

Wednesday: Balance of Payments, Current Account
Thursday: Nikkei Markit Manufacturing PMI, Trade Balance

Sectoral indices (25 June)

Global markets (at 8:00 am)

Fact of the day

In 1986, tech giant Apple ventured into the apparel business, launching a clothing line called "The Apple Collection". Notably, the move came a year after Steve Jobs had left the company. 

Source: Business Insider

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