RIL fuels market rebound

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Nifty50: 17,536+121.2 (+0.7%)
Sensex: 58,795+454.1(+0.7%)


  • The markets rebounded today and ended on a positive note.
  • However, the market breadth was evenly split with 25 stocks advancing.
  • Among the Nifty sectoral indices, Realty (+1.9%) and Oil & Gas (+1.8%) were top gainers.
  • Whereas, Auto (-0.5%) and PSU Bank (-0.5%) were top losers.
Top gainers Today's change
Reliance ▲ 6.3%
Divis Lab ▲ 2.4%
ITC ▲ 1.7%

 

Top losers Today's change
Maruti ▼ 1.2%
Britannia ▼ 1.2%
IndusInd Bank ▼ 1.1%

For more updates on F&O, click here.


Here are the top stories of the day.

RIL plans restructuring of gasification assets

Reliance Industries plans to transfer and repurpose its gasification undertaking at Jamnagar into a wholly-owned subsidiary. It plans to build a business opportunity by repurposing the usage of syngas from filling energy needs to producing chemicals that can cater to growing domestic demand.

Further, this move will also open up value unlocking opportunities as it can induct investor(s) in the gasifier subsidiary and also create partnerships for various chemical streams. The stock rose sharply today coupled with high volumes indicating strong buying interest. Interestingly, this strategic announcement came within a week of it calling off the Saudi Aramco deal.


Siemens plunges as profit falls

In the September quarter, the industrial technology company’s net profit dropped by 3% year-on-year to ₹323 crore. This was mainly on account of higher raw material and logistics costs. However, its revenue rose by about 15% to ₹3,941 crore, driven by the energy and smart infrastructure and digital industries segments. The company follows the October-September financial year.

According to the management, the company’s volumes are now at pre-covid levels and it has a record order backlog of ₹13,520 crore, equivalent to FY21 revenues. It added that the government’s investment in infrastructure and increase in capacity utilisation levels will lead to pick up in private sector capex. This could provide further impetus for profitable growth for the company.


Dixon to make laptops for Acer

Noida-based contract manufacturer for electronics goods has partnered with Acer India to make laptops. Acer will bring its know-how and manufacturing process to the table and Dixon will provide manufacturing facilities. It has commissioned a manufacturing unit with a capacity of 5 lakh laptops for the same.

The companies plan to utilize the benefits available under the Production-Linked Incentive (PLI) scheme for IT hardware makers. Further, the partnership will provide impetus to PC manufacturing in India and help reduce imports.


Closing bell

The markets welcomed Reliance Industries’ progressive steps towards becoming net carbon zero and also reversed the drop in the stock price caused after its decision to scrap the Saudi Aramco deal. The index heavy-weight almost single handedly lifted the Nifty50 index and market sentiments today. Also, favourable cues from Asian and European indices helped in improving the sentiments. Meanwhile, bank stocks are showing subdued movement, currently. However, in the run-up to the GDP data release next week and the RBI’s interest rate decision in the second week of December, traders could turn their attention toward this space.


 

Good to know

What are PLIs?

The production-linked incentives (PLIs) are schemes which the governments use to spur the production of goods. PLIs are essentially incentives, which are provided to companies, to boost the production of products whose demand may be weak or subdued. Recently, the Indian government identified 13 priority sectors to launch PLI schemes with a total outlay of ₹2 lakh crore. The PLIs were targeted towards various sectors including electronic and technology products, pharmaceutical drugs, textile and automobile.


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Disclosures and Disclaimer

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.

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