Indian indices started in the green on Monday and surged 1.9% due to strong buying interest in IT, auto and realty stocks amid positive global trends. The Sensex and Nifty advanced close to 2% tracking supportive trends from Asian peers. Further, restrictions were eased in China.
The benchmark indices finished a volatile session on Friday in the red, as gains in IT and oil & gas shares were offset by losses in financial and auto counters. Broader markets took a hit.
Market Movers
Some of the top gainers were Reliance Industries, L&T, Infosys, ICICI Prudential Life Insurance, and Sun Pharmaceuticals. On the other hand, the top losers were Grasim Industries, Ultra Tech Cement, Shree Cement, Adani Green Energy and Adani Transmission.
Currencies
| Price | Change | %Change | |
| Dollar-Rupee | 77.6225 | +0.02 | +0.02% |
| Euro-Rupee | 83.1560 | +0.00 | +0.00% |
| Pound-Rupee | 97.0600 | 0.26 | -0.26 |
Commodities
| Price | Change | %Change | |
| GOLD | 50984.000 | -285.00 | -0.56% |
| SILVER | 61660.00 | -676.00 | -1.08% |
| CRUDEOIL | 9225.00 | 180.00 | +1.99% |
The Recap
In the recap, we shall take a look at Tata Motors’ acquisition of Ford India’s Sanand Plant, why petrol pumps didn’t buy fuel, investment in Vodafone Idea, and UltraTech Cement’s CAPEX plan.
Tata Motors to acquire Ford India’s Sanand Plant
Tata Motors on Monday said that its subsidiary, Tata Passenger Electric Mobility Limited has signed a Memorandum of Understanding with the government of Gujarat for the potential acquisition of Ford India’s Sanand plant.
The potential acquisition will include land & buildings, a vehicle manufacturing plant, machinery and equipment. In addition, it includes the transfer of all eligible employees of FIPL Sanand’s vehicle manufacturing operations.
Petrol pumps didn’t buy fuel
Delhi Petrol Dealers Association on Tuesday said that they won’t buy fuel from oil marketing companies (OMC) on Tuesday, 31 May since their revisions were not revised despite the rise in petrol and diesel prices.
Although there was an agreement between OMCs and dealer associations that the dealer margins will be revised every six months, it has not been revised since 2017.
Currently, petrol pumps get a commission of around ₹2.90 per litre of petrol and around ₹1.85 per litre in the case of diesel.
Vodafone Idea share price has been on a roll of late.
Investors of Vodafone Idea breathed a sigh of relief after it was reported that Amazon will invest in the company.
Amazon India is planning to invest ₹200 billion in Vodafone Idea. ₹100 bn will be in the form of equity and the other half will be in the form of debt.
The investment proceeds will be used to bid for the auction of the 5G spectrum and for meeting its capital expenditure for providing 5G services.
Reliance Brands Ltd and Plastic Legno SPA ink Joint Venture
Reliance Brands Limited (RBL) will acquire a 40% stake in the European company’s toy manufacturing business in India.
This investment will serve a dual purpose. It will bring vertical integration to the company’s toy business and help in diversifying the supply chain with a long-term strategic interest in building toy manufacturing in India.
This joint venture would open new doors and unparalleled opportunities for toys manufactured in India.
The biggest cement maker doubles down on CAPEX plan
UltraTech Cement Ltd, India’s largest maker of the building material, said that it would spend ₹12,866 crores on adding 22.6 million tonnes per annum (mtpa) capacity.
This happened just weeks after it lost the race to acquire Holcim Ltd India cement assets to billionaire Gautam Adani.
The race to expand capacity comes as the government plans to spend a record ₹ 7.50 trillion this year to build roads and ports to boost growth. This will increase the demand for building materials such as cement.
