Crude oil prices inch higher
- Crude oil prices hit a nine-month high for two major reasons. First, the US crude oil inventories have declined more than expected. Second, another round of stimulus is expected in the US.
- The US has also begun its vaccination campaign on a wider scale, which could result in more people venturing out, thereby increasing demand for oil. The price of crude oil is up 6.6% this month and had risen 26.6% in November.
ITD Cementation on strong ground
- Shares of ITD Cementation, a company specialising in urban infrastructure projects, rose 8.1% supported by high volumes. The company has made losses in this fiscal, as its business was disrupted by the pandemic.
- However, the company is now seeing a recovery in demand, and has an order pipeline of nearly ₹13,000 crore. Further, unlike last fiscal, the management doesn’t expect any more write-offs in the project receivables.
Papermakers gain some weight
- Investors took a fancy to shares of paper manufacturers such as JK Paper (+4.5%), Seshasayee Paper (+7.0%), Orient Paper (+4.1%) and Emami Paper (+20.0%). The rise in the stocks was coupled with a surge in volumes.
- Since schools, colleges and several offices remain closed, the demand for paper, in general, has taken a hit. However, the price of kraft paper, used in making corrugated boxes, have risen 30% in the last few days.
- Chinese demand for kraft paper is likely to increase following the ban on waste paper import into China. This could lead to increase in imports of kraft paper from countries like India.
Biryani time at Jubilant FoodWorks
- Jubilant FoodWorks has launched its biryani brand ‘Ekdum!’, marking its entry into the ₹3,000 crore biryani market. The company, which owns the master franchise for Domino’s Pizza, currently has pizzas, donuts, Chinese cuisine and ready-to-cook sauces and gravies in its portfolio.
- The news seems to have triggered investor appetite, as the stock rose 5.5% to a record high. Meanwhile, shares of the recently listed Burger King (-9.9%) delivered a googly today by hitting both the upper and lower circuits on the same day.