Morning Update for 6 July 2021

Indices at previous closing

Nifty50: 15,834 ▲+112 (+0.7%)
Sensex: 52,880 ▲+395 (0.7%)
Nifty Bank: 35,212 ▲+402 (+1.1%)

In the news

Domestic flight capacity increased

• As per the latest government order, domestic airlines can now operate flights at 65% of their total seating capacity till July 31 or further orders. This means that airlines can now fly 30% more passengers than permitted by the earlier cap. 
• The decision could help domestic carriers take advantage of the pent-up demand for travel. Yesterday, shares of InterGlobe Aviation (Indigo) and SpiceJet rose up 2% and 1%, respectively.

Godrej Consumer expects strong growth in Q1

• The fast-moving consumer goods company expects its June quarter sales to grow in the high teens, led by strong volume growth and price hikes. The company is estimating strong demand for its home care and personal care products, where it expects double-digit growth.
• Within the above categories, the company witnessed strong demand for household insecticides and personal hygiene products. Shares of Godrej Consumer were up around 4% yesterday. 

Crude rises as OPEC+ meeting adjourned

• Crude oil prices spiked yesterday after OPEC+ nations abandoned their meeting, leaving the decision to increase production limits in limbo. While on the one hand, the UAE wants to end the production curbs by April 2022, Saudi Arabia wants to extend them till the end of 2022. 
• The oil market is already facing tight supplies and crude prices are rising as the global economy gets back on track. The US crude oil prices moved above $76 again and are now at their highest since November 2018. 

Key data releases this week

Thursday: Initial Jobless Claims (US), Crude Oil Inventories (US)

Sectoral indices (July 5)

Global markets (at 8:00 am)

Fact of the day

The hole in the Earth's ozone layer is expected to fully heal within 50 years, according to a UN report.

Source: CNN

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