Morning Update for 30 August 2021

Indices at previous closing

Nifty50: 16,705 ▲ 68 (+0.4%)
Sensex: 56,124 ▲ 175 (+0.3%)
Nifty Bank: 35,627 ▲ 10 (0.0%)

In the news

Bharti Airtel to raise funds

The telecom major has said that it will raise ₹21,000 crore through the rights issue route. The price fixed for the rights issue is ₹535, which is 9% lower than its Friday’s closing price. For every 14 shares, the existing shareholders can buy 1 share.. Further, the company will raise 25% of the rights issue amount first and the remaining will be called over the horizon of 36 months.   

Also, according to reports, Bharti Airtel could receive substantial investment, running into several thousands of crores from Alphabet Inc.’s Google. Last year, it had invested around ₹34,000 crore in Bharti Airtel’s rival Reliance Jio. The shares of Bharti Airtel were up 0.2% on Friday.

Tata Motors to hive off car biz

The auto major has received the approval from the National Company Law Tribunal to set up its passenger vehicle division into a separate entity. The company reportedly values its passenger vehicle division at ₹9,417 crore. 

Furthermore, the automaker seeks a strategic partnership to ensure long-term viability of the new entity. The stock traded flat on Friday, but at present trades around 21% below its 52-week high, achieved this June. 

Tata Steel, SAIL to ramp up capacity

Steel majors Tata Steel and SAIL have reportedly committed to investing a total of ₹7,000 crore in Jharkhand over the next three years. Tata Steel will invest ₹3,000 crore while SAIL intends to invest ₹4,000 crore separately for capacity expansion. 

Further, Tata Steel has also announced investments of ₹8,000 crore in FY22 to expand mining and recycling operations at its Kalingapur plant. Shares of Tata Steel have declined about 10% from their lifetime high hit in August, while SAIL’s stock is 22% down on its 52-week high achieved in May.    

Sectoral indices (August 27)

Global markets (at 8:00 am)

Fact of the day

In 1899, Fabbrica Italiana Automobili Torino (translated as Italian Automobile Company Turin) was established. The world knows the company better by the name Fiat.

Source: FIAT

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