Inflation expectations
- Economists estimate the November inflation figure at 7.1%. The rate of inflation is likely to be lower than 7.6% in October, due to a reduction in food prices (veggies and pulses). That’s still above the RBI’s comfort zone of 2-6%.
- In its recent meeting, the RBI kept rates unchanged, choosing growth over inflation control. November inflation data will be released tomorrow.
Kalpataru Power drops
- On 8 December, power transmission company Kalpataru Power (-6.5%) announced a ₹380 crore capex for construction of its corporate office in Mumbai. The plan is to consolidate businesses of the company and its subsidiaries at a single location.
- However, the new office plans didn’t go well with the investors, especially in these WFH times. Since the announcement, the company has lost nearly ₹800 crore of its market cap.
UPL cracks on whistleblower allegations
- ear of corporate governance issues triggered heavy selling in UPL, a Nifty50 stock. As per media reports, a whistleblower has alleged that the agrochemicals company paid crores in rent on properties owned by its employees.
- Meanwhile, the company has denied the claims. However, UPL shares were down -11.2% coupled with high volumes today.
Cement companies on the radar
- Ambuja Cements (-1.6%) and ACC (-1.2%) have been pulled up by the Competition Commission of India in a recent investigation. Both companies are part of the Holcim group. Such investigations are generally conducted to check anti-competitive behaviour.
- Other cement stocks—Ultratech (-3.3%), Shree Cement (-2.7%) and Ramco Cements (-4.2%)—too reacted negatively to the development.
FMCG stocks come to the rescue
- FMCG stocks came to the rescue today when nearly all sectoral indices were in the red. The Nifty FMCG index (+2.8%) made record highs.
- The sector is witnessing a revival as challenges in supply chains during the lockdown have now eased. Further, consumption levels are getting back to normal, unlike when consumers were just purchasing essentials during lockdown. Nestle (+4.1%), ITC (+3.7%) and Godrej Consumer (+3.5%) were among top gainers.