Indian stock market opened flat; Focus on Telecom and IT stocks

The Hang Seng is down 0.7%, while the Shanghai Composite is trading on a flat note. Japan’s Nikkei is up 0.5%.

US stock markets edged higher with the Nasdaq hitting record highs as investors balanced concerns about the slowing pace of economic recovery with hopes that the Federal Reserve would maintain its liberal monetary policy.

The Dow Jones Industrial Average fell 0.8 percent and the Nasdaq 0.1 percent.

Back home, Indian stock markets have opened on a flat note after the SGX Nifty trend.

BSE Sensex is trading with a fall of 54 points. Meanwhile, NSE Nifty is trading with a decline of 9 points.

Power Grid and Infosys are among themtop beneficiary Today. On the other hand, Bharti Airtel is the biggest loser today.

The BSE Mid Cap Index opened up 0.1%. BSE Smallcap index is trading with a gain of 0.3%.

Sectoral indices are trading mixed with stocks in the telecom sector and banking sector showing buying interest.

On the other hand, Power Stock and IT Stock are trading in the red.

Shares of Jain Irrigation and Tube Investment hit a 52-week high today.

Rupee is trading at 73.48 against US Dollar.

Gold prices up 0.2% ₹47,026 per 10 grams.

Meanwhile, silver prices are trading with a gain of 0.1%. ₹64,654 per kg.

In consumer durables sector news, Voltas, Blue Star, Dixon Technologies, Amber Enterprises and Hindalco are all set to apply for the government’s Production-Linked Incentive (PLI) scheme for air-conditioner components, thereby providing greater immediate investment can be brought. ₹30 billion

According to an article in The Economic Times, the scheme for ACs is open to the production of components only, unlike mobile phones, where finished products are also included and many companies that want to invest in the manufacture of air-conditioners in the hope of finished goods. are considering, they will be allowed. So he has postponed his plans.

The application window for the PLI scheme for air-conditioner components ends on 15 September.

The executives of these companies have confirmed their investment plans.

Amber Enterprises will make a ₹4-BN investment proposal, while Blue Star will set up a plant for heat exchanger and sheet metal as part of its ₹2.5 billion investment.

While Dixon Technologies will enter into a joint venture with a Japanese company to manufacture printed circuit boards for air-conditioners.

For ACs, 75-80% of the components are currently imported, while more than 95% of ACs are now manufactured locally, after the government banned the import of ACs containing refrigerants.

According to industry officials, the absence of incentives on finished goods would mean that India would have no competitive edge on AC exports as compared to China.

Furthermore, local industry output will not increase and, therefore, investing huge money in components may not justify economies of scale.

The government had clarified last month that the scheme is only for AC components and will not cover finished goods. it is allocated ₹62.4 billion for five years under the PLI scheme for AC and LED lights.

We will keep you informed about the latest developments in this field. stay tuned.

Stocks are moving up on specific news…

Dr Reddy’s Lab is one of the top trending stocks today.

Dr Reddy’s Lab has said that it has started supplying the first dosage component of the Russian COVID-19 vaccine Sputnik V to partner hospitals across the country.

The development came after the announcement that Panacea Biotec supplied the first shipment of the second component of the Russian Sputnik V vaccine manufactured by it for sale in India.

Note that earlier, Dr Reddy’s suspended the supply of the first dose of Sputnik V following supply constraints from the Russian Direct Investment Fund (RDIF).

Dr Reddy’s has also launched a website to keep the public updated about the availability of Sputnik V Vaccine.

With more batches of second dose components to follow from the manufacturing site, Dr Reddy’s expects momentum and supplies to continue.

The drugmaker is entering into an agreement with RDIF to sell the first 125m people doses (250m vials) of the Covid-19 vaccine Sputnik V in India.

Share price of Dr Reddy’s Lab opened with a decline of 0.3% on the day.

Introducing an interesting data about Dr. Reddy’s Lab, the right investment ₹100,000 in Dr. Reddy’s Labs in 1992, it would have given a lot ₹4.89 crores in 2014!

Tanushree Banerjee, co-head of research, believes there are opportunities in this India’s rebirth Not only are they more profitable than in 1991 but profits can also come faster.

This article is syndicated from equitymaster.com