See-saw

Nifty50: 17,304  ▼ 17 (-0.1%)

Sensex: 57,892 ▼ 104 (-0.1%)

• The markets had a gap-up opening and then started moving down. Buying at lower levels pushed the markets up before eventually falling in the last hour of trade.
• Like yesterday, 33 of the Nifty50 stocks closed in the red.
• The markets are moving in a tight range between 17,300-17,500 since the last two days. A decisive break on either side of the range can trigger some movement.

Among the Nifty sectoral indices, Oil and Gas (+0.7%) and FMCG (+0.3%) were the top gainers, while PSU Bank (-1.1%) and Nifty Bank (-1.1%) were the top losers.

For more updates on F&O, click here.

Here are the top stories of the day.

High material costs eat into Nestle’s profit

The food and beverage major posted a revenue of ₹3,706 crore, up 8% year-on-year, which was driven by domestic sales. However, its net profit declined 20% year-on-year to ₹387 crore, mainly due to higher commodity prices, particularly edible oil and packaging costs.

According to the company, the price outlook for key categories like edible oil, wheat, coffee, and fresh milk remains firm to bullish, while cost of packaging materials can continue to increase in the short to medium term. The company’s board of directors recommended a final dividend of ₹65 per equity share for the year 2021.

Tata motors rises on JLR’s NVIDIA deal

JLR, the wholly-owned subsidiary of Tata Motors, entered into a partnership with NVIDIA, the world’s leading producer of graphic and artificial intelligence (AI) chips. The companies will jointly develop and deliver next-generation automated driving systems and AI-enabled services for JLR’s customers.

Starting in 2025, the partnership will start rolling out vehicles that will be built on the NVIDIA DRIVE software-defined platform. Tata Motors currently has two electric vehicle models—Tigor and Nexon—and this number is expected to rise to 10 models in the next 3 years.

Hydrogen policy fuels power and energy stocks

The first part of India’s National Hydrogen Policy is expected to be launched today. The policy is aimed at boosting production of green hydrogen (hydrogen produced using renewable energy) in the country. This is a step towards ensuring energy security for India, which currently imports 85% of its oil and 53% of its gas requirements.

The policy will reportedly allow companies to set up renewable energy capacity anywhere by themselves or through a developer. Hydrogen can be used for fuel-cell and internal combustion engines, and is also used in sectors such as chemicals, iron, steel, transport, heating and power.

IPO Corner

The state-owned life insurer LIC is facing tax dues of ₹74,994 crore, according to the draft red herring prospectus filed by the company. LIC and the government are locked in a legal tussle in several courts over the issue of taxation. The company is facing allegations of misrepresenting its total income for several years.

Good to know

What is sweat equity?

Sweat equity is the non-monetary contribution (in the form of time and labour) made by individuals or founders towards a company in its early stages. In cash-strapped businesses, owners and employees typically take salaries that are below market value in return for a stake—referred to as sweat equity—in the company.

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