Stock Market Latest Updates- 23-March-2021

Nifty50: 14,736 ▼ 7 (-0.0%)

Sensex: 49,771 ▼ 86 (-0.1%)

Nifty Bank: 33,603 ▼ 558 (-1.6%)

Maruti Suzuki to hike prices from April

• The country’s largest carmaker will raise the prices of its cars on 1 April. Although the company hasn’t announced the quantum of the price hike, it stated increasing input costs as the prime reason for the decision.
• Reports suggest that other automakers are likely to increase prices by 1-3% to offset input cost pressures, particularly in steel. The Nifty Auto index has risen about 10% so far this year.

Loan moratorium verdict today

• The Supreme Court will announce its decision on the loan moratorium case today. Due to the Covid crisis, banks had deferred installments on loans. 
• Certain sectors and trade associations had sought an extension of the moratorium and other relief measures in view of the pandemic. The Supreme Court’s verdict could trigger movement in shares of the banking sector.

KEC International secures large orders

• The Mumbai-based electricity transmission and distribution company has bagged orders totaling ₹1,429 crore. With this, its total order inflow this year has exceeded ₹11,000 crores.   
• These include orders from Power Grid Corporation, Indian Railways, civil works, and cable segments. The stock has risen about 4% so far this month. 

Man Industries wins overseas contract

• The maker of large-diameter pipes recently bagged orders worth ₹500 crores. These orders include domestic and international orders in the oil and water sectors. 
• With the new deals, Man Industries reportedly has an order book worth ₹1,250. Its stock has risen 11% so far in March.  

Sectoral indices (22 March)

Global markets

Nifty50: 14,814 ▲ +78 (+0.5%)
Sensex: 50,051 ▲ +280 (+0.5%)

The markets were volatile throughout the day but remained largely in the green. The Nifty50 was almost evenly split, with 28 of its constituents closing higher today.  

Meanwhile, Nifty PSU Bank (+2.9%) and Nifty Bank (+1.7%) emerged the strongest among the sectoral indices, with the Nifty Metal (-0.6%) and Nifty FMCG (-0.3%) being the top losers. 

End of the Day

SC waives compound interest for borrowers

• The Supreme Court has ordered the waiver of compound interest for all borrowers who availed of the loan moratorium under RBI’s Covid provisions. As per reports, the total cost borne by the government due to the waiver is estimated at ₹13,500–14,000 crore. 
• The interim relief granted to not declare certain borrowers as non-performing assets (NPAs) has also been lifted. The news brought cheer to the banking stocks, which was evident in the 1.7% surge in the Nifty Bank index. 

Liquor stocks rally on revised age limit

• The Delhi government has reduced the legal age for drinking from 25 years to 21 years in the capital. The street expects that this will increase the demand for alcoholic beverages. 
• In response, shares of liquor makers such as United Spirits (+2.0%), United Breweries (+1.7%), Radico Khaitan (+6.8%), and Globus Spirits (+4.3%) were upbeat today. 

Corporate action triggers buying in agrochem stocks

• The shares of Alkyl Amines surged 12% intraday after the company announced a 5:2 stock-split. The stock closed with gains of nearly 10%.
• Meanwhile, agrochemical company Insecticides India announced a buyback, which caused its shares to surge 14% intraday. However, the subsequent selling pressure brought the gains down to 6.2% by the end of the trading session.

Crude oil drops on demand recovery fears

• After hitting a high of nearly $68 on 8 March, crude oil prices have dropped by 12%. New pandemic-related restrictions and slow vaccine rollout in Europe have raised concerns over the demand recovery. 
• Further, analysts believe that global travel restrictions will remain for the time being. Thus, a recovery in oil demand in the second half looks doubtful

At last

The Indian markets inched higher in what seemed like a relief rally, driven mainly by banks. The buying interest comes after the weakness seen last week. Further, correction in crude oil prices and US Treasury yields also soothed investor sentiments. However, one must note that other global cues are not supportive, as most international equity markets closed in the red today. For traders, it is time to be cautious and adjust trading strategies to suit changes in the trend.