
World’s first CNG bike boosts hope for India’s city-gas suppliers
Last Updated on July 10, 2024 9:25 am
Stock futures point to another subdued day, tracking mixed global cues.
Here are some key news and events that are likely to move markets in India.
Stock futures point to another subdued day, tracking mixed global cues. The Nifty remains overbought on short-term charts and upward momentum is cooling after the recent record run. Traders expect the market to remain in a bit of a holding pattern ahead of the federal budget later this month.
Bajaj’s CNG bike: good news for city gas suppliers
Bajaj Auto has launched the world’s first CNG-powered motorcycle, which costs a lot less than the gasoline-fueled one. The company expects to sell 10,000 units a month to start, and hopes to lift volumes gradually. Analysts expect sales to go up, although some say that the low price could affect profitability in the short term. If the bike catches on, city-gas firms like Indraprastha Gas and Mahanagar Gas could get an immediate boost, my colleague Alex Gabriel Simon notes.
Heatwave, peak summer demand to boost utilities
This summer, India saw its electricity demand hit a new peak of 250GW, thanks to severe heatwaves across parts of the country. The government expects consumption may rise further to 260GW this year. This is good news for utilities like NTPC, Power Grid, and SJVN, as they’re set to gain from the added capacity, and their moves into storage solutions and green hydrogen, according to Elara Capital.
Agro-chemical stocks face gloomy outlook despite monsoon
The outlook for chemical makers’ shares remains bleak, as the sector grapples with challenges, including high freight rates and container shortages. According to Centrum Broking, agrochemical producers are set for a dismal performance in the June quarter due to high inventories and elevated production levels in China. Despite the expected strong volume growth driven by favourable monsoon, the prices of generic products remain depressed, which will likely hurt performance.
Foreign banks have emerged as the largest investors in India’s trillion dollar sovereign bond market, my colleague Khushi Malhotra points out. They’ve mopped up more than 500 billion rupees ($6 billion) of debt since the beginning of June. That far exceeds about 200 billion rupees of inflows into index-eligible bonds since June 1, and suggests global banks that typically buy as clients’ custodians have also been snapping them up for their own accounts.