Morning Update for 5 October 2021

Indices at previous closing

Nifty50: 17,691 ▲+159 (+0.9%)
Sensex: 59,299 ▲+533 (+0.9%)
Nifty Bank: 37,579▲+353(+0.9%)

For more updates on F&O, click here.

In the news

Power demand expected to brighten

The ratings agency ICRA has upgraded its outlook for the demand of electricity in FY22 to 8%-8.5% from an earlier estimate of 6%. The demand for electricity increased 12% year-on-year in the first half of this fiscal year due to a revival in economic activity, higher demand from agriculture and low-base of last year. 

Interestingly, the electricity demand in the last six months was even higher compared to the same period in FY20, which was before the onset of the pandemic. Strong investor interest was seen in the shares of NTPC (+4.0%), Tata Power (+2.9%) and Adani Power (+4.9%).

Biocon launches cancer drug in US 

Bengaluru-based biopharmaceuticals company announced the launch of its new cancer drug Everolimus in the US market. Everolimus is a prescription based medication used to treat certain types of cancers and tumours. 

As per IQVIA, annual sales of this drug in the US is about $675 million (₹5000 crore). Meanwhile, shares of Biocon were down 0.3% yesterday but registered gains of 1.6% in the previous week.

India Glycol soars on rating upgrade

Shares of Uttar Pradesh-based speciality and performance chemicals manufacturer India Glycols  traded at a record high level after credit rating agency India Ratings & Research (Ind-Ra) upgraded its ratings. 

As per the agency’s report, with recovery in demand of chemical segments and reduction in company’s debt, the company’s credit metrics will improve over the near term. The company’s products find application in manufacturing of textiles, agrochemicals, paints and detergents. Meanwhile, shares of India Glycol were up 16% yesterday and rose 24% last week.

Sectoral indices (October 4)

Global markets (at 8:00 am)

Fact of the day

Before it manufactured cars, Maserati made spark plugs, batteries and electric delivery vehicles.

Source: Britannia

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Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.