RIL Setting Sail to Innovation
Aaj Ka Bazaar
Despite intensifying US CPI data, investor sentiment aligns more with fragile labour market figures. The pace of the USD for the rest of the week will be dictated by US Retail Sales and Weekly Jobless Claims figures, with 82.70 acting as support and 82.95 as resistance for USDINR. After a significant rebound on Tuesday, US stocks showed a relatively lacklustre performance on Wednesday, closing mixed after spending most of the day fluctuating around the unchanged line. Asian markets exhibited mixed trading in early Thursday with the Nikkei index down 0.5% and Kospi gaining 0.4%. Oil prices surged about 3% to a four-month high on Wednesday due to a surprise withdrawal in US crude inventories, a larger-than-expected drop in U.S. gasoline stocks, and potential supply disruptions following Ukrainian attacks on Russian refineries. Gold prices rose on Wednesday driven by a weaker dollar, amid investor expectations of a June rate cut by the Federal Reserve despite high US inflation, and escalating geopolitical tensions bolstering bullion's safe-haven demand. On the domestic front, Reliance Industries agreed to acquire Paramount Global's entire 13.01% stake in local entertainment network Viacom 18 Media for approximately $517 million (Rs. 42.86 billion). Additionally, the market regulator is anticipated to propose measures to ease business for FPIs, AIFs, and portfolio managers, including implementing optional T+0 settlement, at its upcoming Board meeting. The benchmark Sensex and Nifty indices are expected to open negatively on March 14, reflecting weak trends in the GIFT Nifty, indicating a subdued start for the broader index.
Markets Around Us?
Sector: Petrochemicals
RIL to invest more than Rs 800 crore in 3 subsidiaries
Reliance Industries, a huge company that works in everything from oil to telecom, has just put Rs 852.8 crore (which is about $102.90 million) into three of its companies named Ethane Coral LLC, Ethane Diamond LLC, and Ethane Jade LLC. Each of these companies is going to have a giant ship, called a Very Large Ethane Carrier (VLEC), for moving ethane around. This money is mainly for paying part of the cost to build these massive ships. These Ethane companies were set up on December 4, 2023, in the Marshall Islands, and they don't really do business yet; they were just created to own these big ships. This move is all in the family, meaning Reliance Industries is investing in its own subsidiaries, and it was done fairly, without any special favours. They didn't need to get permission from the government or other agencies for this investment.
Why it Matters:
The investment could be received positively by the market and investors, reflecting Reliance Industries’ commitment to investing in infrastructure that supports its core operations. It showcases the company’s forward-thinking approach and its ability to capitalize on emerging opportunities, which might boost investor confidence and potentially impact its stock price positively.
NIFTY 50 GAINERS
NIFTY 50 LOSERS
Sector: Hydro Electricity
SJVN subsidiary gets LOI for 500 MW power plant in Gujarat
SJVN Green Energy, a branch of the government-owned company SJVN Ltd, has gotten a thumbs up to build a big solar energy project in Gujarat. They're planning to spend Rs 2,700 crore to set up a 500 MW solar power plant at the GIPCL solar park in Khavda. They'll start selling electricity from this project at Rs 2.54 for each unit used, but first, they need the okay on this price from the Gujarat Electricity Regulatory Commission. They aim to get this project up and running by November 2025, which is 18 months after they sign the official power sale deal. In its first year, the project is expected to produce over 1.27 billion units of electricity, and about 29.25 billion units over 25 years. Also, it's going to cut down carbon emissions by about 1.43 million tonnes, which is great for the environment.
Why it Matters:
The initiation of such a large-scale solar project could be viewed positively by investors, potentially leading to an uptick in SJVN Ltd's stock price. It signals the company's strategic expansion into renewable energy, diversifying its energy portfolio and aligning with global shifts towards sustainable energy sources. Investors often reward such forward-looking moves with increased confidence and investment.
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Around the World
Wall Street's tech stocks, excited by artificial intelligence, pushed the market up, but U.S. stock futures dipped a bit the next day. The excitement came especially from companies like Oracle and Nvidia, who are diving deep into AI, helping the S&P 500 hit record highs. However, recent inflation data was higher than what people wanted, making everyone wonder if the Federal Reserve will raise interest rates sooner. Yet, most bets are still on the Fed cutting rates by mid-2024. Meanwhile, oil prices went up a little after reports showed fewer oil supplies than expected and OPEC thinks demand for oil will grow. Gold, on the other hand, saw its price drop after the inflation news, stepping back from its recent high prices. In Japan, stock prices fell as there's talk the Bank of Japan might stop its big-money policies soon, especially if companies start giving bigger paychecks, like Toyota's recent wage hike.
Option Traders Corner
Max Pain
Nifty 50 - 22,116 (Pivot)
Bank Nifty - 47,097 (Pivot)
Did you know?
BHEL's order book sweels
The value of order inflows reported by BHEL during the first nine months of FY24 stood at Rs 36,000 crore, up 102% from the same period last year.
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CXO Relationship Manager
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