Market Update – 21 June 2021 – Gold prices snap losing streak

Gold prices snap losing streak

  • Gold prices rose by 6% on Monday as the US treasury yield eased to its lowest since February 2021. After the US central bank said that it would take at least two rate hikes by 2023, investors believe that the inflation won’t be allowed to spiral out of control.
  • Hence, they have been buying treasury bonds and retreating their inflation bets. Last week, gold suffered its worst weekly losses since March 2020. Gold prices have fallen by around 5% in India this month.

Guj Alkalies posts jump in profit

  • Gujarat Alkalies and Chemicals, which is one of the biggest manufacturers of caustic soda, reported strong profit growth in Q4. Its consolidated net profit soared two-fold to ₹34.6 crore from ₹11.4 crore in March 2020. 
  • The profit growth was driven by an 8% rise in revenue from operations and lower tax expense. Shares of Gujarat Alkalies and Chemicals were down 0.1% today.

PSU banks soar on stake sale buzz

  • Shares of state-owned lenders Central Bank of India and Indian Overseas Bank soared 20% on Monday, after reports suggested that the government selected the two banks for divestment.
  • The government will reportedly divest 51% of its stake in each of these banks in the first phase. Investor interest was also high in other PSU banks such as SBI (+1.5%), Bank of India  (+4.6%) and Bank of Baroda (+2.5%).

Maruti Suzuki to hike prices in Q2

  • The country’s largest car manufacturer is planning to raise prices of its cars to offset rising input costs. This will be the second price hike by Maruti this fiscal after the 1.6% hike in the June quarter.
  • The company said that the input costs have risen over the past year, and it will have to pass on some of the costs to the customers. The quantum of the price hike will vary across models. Shares of Maruti Suzuki were down 1% today and have declined 2.6% so far this month.