Stock Update for 6 December 2021
Automakers mull price hike
According to the reports, auto majors such as Tata Motors and Honda are considering raising the prices of vehicles from January 2022 to offset the impact of rising input costs a report by The Wealth Generating. The management of Tata Motors reportedly said that the prices of commodities, raw materials, and other input costs have continued to rise.
This comes just days after the leader in the passenger vehicle space Maruti Suzuki said that it will hike prices from next month. Meanwhile, Nifty Auto was down 0.7% on Friday and has fallen around 6% in November.
RBI may not hike rates, say experts
The Reserve Bank of India (RBI) is expected to announce its interest rate decision on Wednesday (December 8). Amid the new virus scare, the Street expects the central bank to leave the rates unchanged.
Despite the inflationary pressure building up in the economy, experts believe that RBI may wait for the right time to adjust interest rates. Meanwhile, the Nifty Bank was down 0.8% on Friday.
OPEC to review oil output
The OPEC+ group is set to review its oil supply additions as the new virus variant poses a possible demand risk. It was reportedly set to increase supply by 4 lakh barrels per day in January 2022.
US crude oil prices have fallen for six consecutive weeks and are down nearly 18% from their recent peak of about $80 per barrel. Falling crude oil prices are typically beneficial for oil market companies such as BPCL and HPCL.