Morning Update for 6 October 2021

Indices at previous closing

Nifty50: 17,822▲+131 (+0.7%)
Sensex: 59,744▲+445 (+0.7%)
Nifty Bank: 37,741▲+161 (+0.4%)

For more updates on F&O, click here.

In the news

ONGC surges on rising oil prices

Shares of state-owned ONGC were up more than 10% yesterday as the prices of natural gas and crude oil continue to see an unabated rise. The stock is seeing strong investor interest as the rise in the stock was preceded by a 20% jump seen in the previous month. 

As per reports, a 62% rise in prices of natural gas and crude oil rates around $80 a barrel auger well for the upstream oil producer's earnings growth

Paper stocks rally on multiple tailwinds 

Shares of paper manufacturers soared yesterday due to multiple favourable developments over the past few weeks. A government body has reportedly recommended imposition of anti-dumping duty on decor paper from China. Besides this, analysts also state that power outage in China is leading to the rise of paper prices. 

Also, ban on single use plastic from next year and a fall in raw material cost are also being seen as tailwinds for the paper stocks. Shares of JK Paper (+5.6%), West Coast (+3.9%) and Seshasayee Paper (+3.5%) witnessed strong buying interest yesterday.

Moody’s upgrades India’s rating

Rating agency Moody’s has changed India’s sovereign outlook to ‘stable’ from ‘negative’. Moody’s expects India’s real GDP to surpass 2019 levels this fiscal year, rebounding to a growth rate of 9.3%, followed by 7.9% in 2022.

The agency has stated that, after the second wave of pandemic, the Indian economy has shown signs of strong rebound. With higher tax collections, strong power consumption and rise in exports - India is rebounding faster than anticipated. Highlighting India’s improving credit conditions, the agency said that after years of NPA crisis in the banking sector, things have changed for the better.

Sectoral indices (October 5)

Global markets (at 8:00 am)

Fact of the day

Ferrari’s “Prancing Horse” logo was inspired from a horse painted on the body of the aircraft flown by a World War I Italian air force pilot called Francesco Baracca. 

Source: FastCompany

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