Morning Update for 4 March 2022

Indices at previous closing

Nifty50: 16,498 ▼107 (-0.6%)

Sensex: 55,102 ▼366 (-0.6%)

Nifty Bank: 34,944 ▼428 (-1.2%)

For more updates on F&O, click here.

Voda-Idea’s big fundraising plan 

The debt-ridden and loss-making telecom operator’s board has given the approval to raise ₹14,500 crore through various avenues. Of that, around ₹4,500 crore will be raised from promoter entities at ₹13.3 per share. 

The remaining ₹10,000 crore will be raised through private placement or qualified institutional placement by issuing equity or bonds. This comes at a time when the company is looking to script a turnaround by investing in capex and improving 4G network coverage. Meanwhile, shares of Vodafone Idea were up 5.7% yesterday.

High crude prices may hurt Berger Paints 

According to the management, the paint maker’s costs could rise by 35% to 40% in the wake of high oil prices fueled by the Russia-Ukraine conflict. It said that the raw material costs linked to crude will go up. 

The company has raw material inventory that will last till March 2022 and hence rising raw material costs could impact its profitability in the first quarter of FY23. Meanwhile, shares of Berger Paints were down around 2% yesterday.

Cement makers face rising costs 

Cement manufacturers are struggling with rising input costs as the prices of petcoke and coal increase. Experts believe that cement makers would have to hike prices by ₹3 per bag to mitigate the impact of increasing costs. 

The rise in prices of petcoke and thermal coal are expected to increase costs by ₹41 to ₹52 per tonne and dent profitability. Meanwhile, shares of UltraTech Cement, Shree Cement and Ambuja Cement were down in the range of 4% to 7% yesterday.

Sectoral indices (March 3)

Global markets (at 8:00 am today)

Fact of the day

Bhutan and Suriname are the only two carbon negative countries in the world.

Source: Reuters

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