Action Construction gains
- The pick-up in infra-construction projects and increasing demand for commodities augur well for listed construction and material-handling equipment companies such as Action Construction Equipment (+7.1%).
- The stock has gained nearly 60% in November 2020. The company management had recently stated that they see 25-30% revenue growth and double-digit margins in FY22 thanks to a healthy order book and improving demand scenario for user industries.
Ola bets on e-scooters
- The Bengaluru-based ride-hailing firm plans to invest ₹2,400 crore to set up a factory for electric scooters in Tamil Nadu. The company claims that with an annual capacity of 20 lakh units, the factory would be the largest in the world.
- The scooters will be in direct competition with products from the EV arms of Hero MotoCorp (-2.2%), Bajaj Auto (-1.1%) and TVS Motor (+0.7%).
L&T bags big-ticket orders
- The infra giant was among the top gainers in the Nifty50 today after it announced several orders wins ranging from ₹1,000-2,500 crore in its ‘buildings and factories’, and ‘power transmission and distribution’ businesses.
- The stock has gained ~35% since November, compared to the Nifty50 which has risen 16%. The size and frequency of recent orders have spurred investor interest in L&T (+4.2%).
Cipla surges on dispute settlement
- Shares of Cipla jumped +4.1% as the company settled a patent litigation with Celgene in the US. Cipla will now be able to sell limited quantities of gRevlimid capsules from FY2023 to FY2026 and unrestricted quantities thereafter.
- The markets seem to be factoring in the present value of incremental sales. As per reports, the cancer drug saw annual sales of $9 billion in CY19 in the US.
Wholesale Inflation on the rise
- The wholesale price index for November stood at 1.55% (vs 1.48% in October), the highest since February 2020. The rise is attributed to the increasing cost of manufacturing goods, whereas food prices eased.
- Inflation for manufactured products rose to 2.97% (vs 2.12% in October) while food inflation dropped to 3.94% (6.37% in October).
- The market awaits the data on consumer price inflation, which is expected later today. The street estimates are of 7.1% (7.61% in October).