Indian Hume Pipe bags large order
- Indian Hume Pipes has received a letter of acceptance from the UP government for water supply schemes—a project worth ₹550 crore. While the exact contract value is yet to be finalised, orders worth ₹400 crore are guaranteed as per the agreement.
- For FY20, the company’s revenues stood at ₹1,623 crore and profits came to ₹73 crore. The company’s shares rose 4% after the news. Meanwhile, Gayatri Projects rose 5% and was locked in its upper circuit after receiving orders worth ₹1,332 crore from the UP government for piped drinking water schemes.
Spicejet gets a booster shot
- Shares of Spicejet (+5.5%) have been on a roll after the airline signed an MOU with Snowman Logistics (+5.8%) to distribute vaccines across India and overseas. Snowman will handle ground logistics while SpiceJet will provide air connectivity for the temperature-controlled distribution of vaccines.
- As per reports, Spicejet has also tied-up with Om Logistics for a similar arrangement. Shares of Spicejet have nearly doubled over the last two months thanks to the revival in the travel industry.
NMDC is pumping iron
- Iron ore prices have risen 70% this year due to a surge in demand from China. Prices are at ~$157/tonne, the highest since 2013. The momentum expected to continue even in 2021, given the strong demand and restrained supply.
- Margins of commodity players spike during such price surges because the costs don’t rise proportionately. The price rise augurs well for NMDC, India’s largest producer of iron ore. Its shares rose 2.9% today and have gained 35% this quarter.
Oil companies ride on a crude surge
- Crude oil is on the boil and has risen nearly 26% in November. Oil explorers such as ONGC (+5.4%) and OIL India (+4.7%) are riding this wave, and have seen share prices spike.
- Crude oil prices are rising on the expectation that demand for oil will rise even in the next year as vaccines roll out across the globe.