Morning update for 8 January 2021

Indices at 10:00 am

      Nifty50 14,243 ▲ 106 (+0.7%)

         Sensex 48,423 ▲ 330 (+0.6%)

  Nifty Bank 32,147 ▲ 191 (+0.6%)

In the news

GDP estimates remain in the red

• As per the first advance estimate of national income, India’s GDP growth is expected to contract by -7.7% for FY21. The RBI had pegged the figure at -7.5%. 
• Agriculture (+3.4%) and utility services such as electricity, gas and water supply (+2.7%) are likely to witness growth. Meanwhile, industries such as construction (-12.6%), mining (-12.4%), manufacturing (-9.4%) are likely to remain in the red. 
• The hotels, transport and communications industries (taken collectively) are estimated to face the steepest contraction of -21.4% over FY20.

Maruti conservative on growth prospects

• The automotive industry has shown recovery due to the demand during the festive season. However, demand remains 33-34% lower than 2018-19 levels, maintains Maruti.  
• BS-VI Phase II and stricter fuel economy requirements could pose headwinds. Shares of the carmaker were up 1.9% this morning and were up 13.5% in Q3.

Crude oil surges as US inventories fall

• West Texas Intermediate or WTI crude hit fresh highs since the first Covid lockdown.
• The spike was driven mainly by a higher-than-expected fall in US inventories by 8 million barrels (versus the expected 2.1 million)  and a pledge by Saudi Arabia to cut production more than expected. 

Events in this week

• TCS results

Sectoral indices

Fact of the day

The US national anthem was written aboard the HMS Minden. The ship was built by the Wadias at the Bombay Dockyard.
Source: The Quint 

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