Don’t miss the latest developments in business and finance.

Shares trade higher; auto shares decline

Image
Capital Market
Last Updated : Jul 14 2021 | 12:50 PM IST

The benchmark indices were trading with decent gains in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, rose 83.44 points or 0.16% at 52,853.17. The Nifty 50 index gained 27.25 points or 0.17% at 15,839.60.

In the broader market, the S&P BSE Mid-Cap index added 0.20% while the S&P BSE Small-Cap index rose 0.46%.

The market breadth was positive. On the BSE, 1,819 shares rose and 1,260 shares fell. A total of 136 shares were unchanged.

Economy:

India's annual rate of inflation based on the Wholesale Price Index (WPI) stood at 12.07% in June 2021 (over June 2020) compared with (-)1.81% in June 2020 and 12.94% in May 2021.

The high rate of inflation in June 2021 is primarily due to low base effect and rise in prices of mineral oils viz. petrol, diesel (HSD), naphtha, ATF, furnace oil etc, and manufactured products like basic metal, food products, chemical products etc compared with the corresponding month of the previous year.

More From This Section

Meanwhile, the S&P Global Ratings on Tuesday, 13 July 2021 affirmed India's sovereign rating at the lowest investment grade of 'BBB-' for the 14th year in a row with a stable outlook, and said that the country's strong external settings will act as a buffer against financial strains despite elevated government funding needs over the next 24 months. The sovereign credit ratings on India reflect the economy's above-average long-term real GDP growth, sound external profile, and evolving monetary settings, S&P Global Ratings stated.

Zomato IPO:

The initial public offer of online food delivery platform Zomato was subscribed 27% by 12:20 IST. The issue received bids for 19,06,78,020 shares compared with 71,92,33,522 shares on offer.

The retail individual investors (RIIs) category was subscribed 1.41 times with bids for 18,26,48,310 shares as against 12,95,58,333 on offer.

The IPO opened for bidding today (14 July) and it will close on Friday (16 July). The price band of the IPO is fixed at Rs 72-76 per share of the face value of Rs 1 each. The IPO comprises a fresh issue of equity shares worth Rs 9,000 crore and an offer for sale (OFS) worth Rs 375 crore by existing investor, Info Edge (India).

Ahead of the IPO, the online food delivery and restaurant discovery platform raised Rs 4,197 crore from 186 anchor investors Tuesday (13 July). The company allotted 55.22 crore equity shares to anchor investors for Rs 76 per equity share.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 18,77,57,447 with 40,48,243 deaths. India reported 4,29,946 active cases of COVID-19 infection and 4,11,408 deaths while 3,01,04,720 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India reports 38,792 COVID-19 cases, deaths up by 624 in last 24 hours, said the Union Health and Family Welfare Ministry data on Wednesday. A decrease of 2,832 cases has been recorded in the active COVID-19 caseload in a span of 24 hours.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 1.14% to 12.7675. The Nifty 29 July 2021 futures were trading at 15,845.95, at a premium of 6.35 points as compared with the spot at 15,839.60.

The Nifty option chain for 29 July 2021 expiry showed maximum Call OI of 26.80 lakh contracts at the 16,000 strike price. Maximum Put OI of 32.90 lakh contracts was seen at 15,500 strike price.

Buzzing Index:

The Nifty Auto index fell 0.30% to 10,466.60. The index skid 2.60% in the past five sessions.

Maruti Suzuki India (down 1.39%), Bharat Forge (down 0.94%), Eicher Motors (down 0.42%), Balkrishna Industries (down 0.27%) and MRF (down 0.24%) declined.

Stock in Spotlight:

Vedanta gained 0.55%. The company said its total aluminum production grew 17% to 5,49,000 tonnes in Q1 FY22 compared with 4,69,000 tonnes in Q1 FY21. In zinc (India), integrated metal production was 236,000 tonnes for Q1 FY22, up 17% as compared to Q1 FY21 in line with higher availability of mined metal and down 8% as compared to Q4 FY21 on account of lower mined metal production.

In zinc (international), total production for Q1 FY22 was 61,000 tonnes, higher by 62% as compared to Q1 FY21 mainly due to higher Gamsberg production due to ramp up and COVID lockdown restrictions which were in place in Q1 FY21. Q1 FY22 production was higher by 10% as compared to Q4 FY21 due to 11% higher throughput.

In iron ore segment, there was no production at Goa due to suspension of mining pursuant to the Hon'ble Supreme Court judgement dated 7th February 2018 directing mining operations of all companies in Goa to stop with effect from 16th March 2018. At Karnataka, production volume in Q1 FY22 was 1.4 million tonnes, higher by 53% as compared to Q1 FY21 and 24% sequentially. Pig iron production was at 2,02,000 tonnes in Q1 FY22, higher by 85% as compared to Q1 FY21 and 29% sequentially.

In oil & gas segment, average gross operated production during Q1 FY22 across our assets was 164,899 barrels of oil equivalent per day (boepd), up 4% compared to Q1 FY21 and at similar levels as compared to Q4 FY21.

In steel segment, total saleable production for Q1 FY22 was 289,000 tonnes, higher by 8% as compared to Q1 FY21, mainly due to COVID-19 restrictions in Q1 FY21. In comparison to Q4 FY2021, total saleable production was down by 9% mainly due to instabilities and hanging issues at blast furnace.

In power segment, during Q1 FY22, power sales were 2,722 million units higher by 48% as compared to Q1 FY21 and 19% lower as compared to Q4 FY21.

Powered by Capital Market - Live News

Also Read

First Published: Jul 14 2021 | 12:30 PM IST

Next Story