Morning Update for 7 March 2022

Indices at previous closing

Nifty50: 16,245 ▼252 (-1.5%)

Sensex: 54,333 ▼768 (-1.4%)

Nifty Bank: 34,407 ▼536 (-1.5%)

For more updates on F&O, click here.

Cement stocks face heat 

Shares of cement makers were under pressure last week despite price hikes. They are facing rising raw material costs along with a subdued uptick in demand. It is important to note that these companies use crude-linked pet coke and coal as raw materials. 

The prices of crude-linked products have been rising in the wake of disruption in supply due to the Russia-Ukraine conflict. Meanwhile, shares of UltraTech Cement and Ambuja Cement were up 0.6% and 1%, respectively, whereas those of Shree Cement were down 1.2% on Friday.

Investors’ interest top priority in LIC IPO

The government is closely monitoring the market conditions and will take a call on the LIC IPO in the best interest of investors, according to a senior official. As per reports, the government wants to launch the much awaited IPO in FY22 but the situation is dynamic.

The official was also quoted as saying that 1 crore new demat accounts have been opened after the proposal to launch the LIC IPO. To know more about the LIC IPO, click here.

Oil prices may surge higher 

According to experts, the prices of oil could hit $185 per barrel if the disruption in supply from Russia continues. They added that around 66% of Russian oil is struggling to find buyers. 

This comes at a time when many are reportedly asking the US to ban import of Russian oil. Experts believe that the large supply shock could lead to prices moving above $120 per barrel mark and staying there for months.

Sectoral indices (March 4)

Global markets (at 8:00 am today)

Fact of the day

In 2021, the US was India’s top export destination with around 18% of the share.

Source: Statista

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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.