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Global share prices slip as US reports highest inflation in 13yrs. Pre-market Report, 14 Jul 2021

Good Morning, Everyone, Things were just turning positive as written in the post-market report yesterday. You can click here to read it if you missed it.

Global Markets

Global share prices slipped last night after the US reported its highest inflation in 13yrs rattled investors who fear rising interest rates could end a stock market rally that has doubled prices from 2020 lows.

The Dow Jones Industrial Average fell 0.31% to 34,888.79, the S&P 500 lost 0.35% to 4,369.21 and the Nasdaq Composite dropped 0.38% to 14,677.65.

US consumer prices increased by the most in 13 years in June amid supply constraints and a continued rebound in the costs of travel-related services from pandemic-depressed levels as the economic recovery gathered momentum.

The consumer price index increased 0.9% last month, the largest gain since June 2008, after advancing 0.6% in May. Economists had forecast the CPI would climb 0.5%. Used cars and trucks prices accelerated 10.5%. That was the biggest jump since January 1953 when the government started tracking the series. Used cars and trucks have been the major driver of inflation in recent months.

Shares in Asia-Pacific mostly slipped in Wednesday morning trade following a hotter-than-expected U.S. inflation report for June overnight.

In Japan, the Nikkei 225 slipped 0.14% while the Topix index sat above the flatline. The Kospi in South Korea dipped 0.26%.

Indian Market:

Trends on the SGX nifty hints at a negative start to the market today with a fall of about 40points due to global concerns, but CPI (Consumer Price Index) in India is still under control so we may not see such a big fall as the US. Moreover, the US markets have been rallying big time for the past few days, due to which we could see a major fall there.

The Nifty will have to close above 15800 today to keep upwards momentum, else we might see some more downward trend. And like few past Wednesdays, we might see high volatility today in the market.

Oil prices gained almost 2% on Tuesday after the International Energy Agency said the market should expect tighter supply for now due to disagreements among major producers over how much additional crude to ship worldwide.

Important Facts: The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. Changes in the CPI are used to assess price changes associated with the cost of living.

The CPI is one of the most frequently used statistics for identifying periods of inflation or deflation. It may be compared with the producer price index (PPI), which instead of considering prices paid by consumers looks at what businesses pay for inputs.

Results Today:

Infosys, 5paisa Capital, Alliance Integrated Metaliks, Bhakti Gems and Jewellery, Craftsman Automation, Dodla Dairy, Essar Securities, Hatsun Agro Product, L&T Technology Services, Mishtann Foods, Tasty Dairy Specialities, Tinplate Company of India, and Vikas EcoTech will release quarterly earnings on July 14.

FII and DII data:

Foreign institutional investors (FIIs) net bought shares worth Rs 113.83 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 344.19 crore in the Indian equity market on July 13

Stock Specific News:

Infosys | The IT major will announce its June quarter earnings later today. A poll of analysts conducted by CNBC-TV-18 estimates dollar revenue growth of 4 percent, while margins are seen unchanged on a sequential basis because there is no impact of wage hike coming through for the company.

Mindtree | The company’s Q1FY22 net profit rose 8.2 percent to Rs 343.4 crore from Rs 317.3 crore, while revenue grew 8.6 percent to Rs 2,291.7 crore from Rs 2,109.3 crore, QoQ.

Adani Enterprises | The company’s subsidiary Adani Airport Holdings has taken over the management control of Mumbai International Airport (MIAL) from the GVK Group.

Vedanta | The company’s total production at Zinc International rose 62 percent to 61,000 tonnes in Q1FY22.

NTPC | The company has received government approval to set up a 4,750 MW renewable energy park in Gujarat.

Hindustan Zinc | The company’s mined metal production in Q1FY22 rose 9 percent to 2,21,000 tonnes from 2,02,000 tonnes, YoY.

Torrent Power | The Supreme Court has stayed a Bombay High Court order that suspended the tender process for power distribution business in Dadra Nagar Haveli and Daman & Diu.

Tata Metaliks | The company reported a profit of Rs 94.72 crore in Q1FY22 against a loss of Rs 12.36 crore, YoY. Revenue jumped to Rs 602.97 crore from Rs 209.94 crore, YoY.

Bank of Maharashtra | The bank opened its qualified institutional placement on July 13 at a floor price of Rs 24.89 per share for the issue.

NBCC (India) | The company has secured a total business of Rs 206 crore in June 2021.

Indian Bank | The bank has received prior approval of RBI for the exercise of call option on the bank’s Outstanding Basel III Tier 2 Bonds Series I aggregating to Rs 600 crore.

Barbeque-Nation Hospitality | ICRA has upgraded credit rating for the bank facilities of Barbeque-Nation Hospitality.

Bodal Chemicals | Samyaktva Construction LLP acquired a 0.37 percent equity stake in the company, increasing shareholding to 5.27 percent from 4.9 percent earlier.

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