Market Update for 17 Sept. 2021 – Hero Motocorp to take price hike

AC makers shares bounce back

The shares of air conditioner makers rebounded from their intraday lows on the expectation of revival in sales during the upcoming festive season. These companies had a washout summer (April-June) due to the second wave. 

However, experts believe that the AC manufacturers have higher raw material inventory and are in a position to push sales for the upcoming festive season. At the same time, AC makers are also benefiting from a ban on the import of components and AC units from China. So far this month, shares of Voltas (+26%), Havells (+16%) and BlueStar (+10%) have delivered strong gains.

Hero Motocorp to take price hike

India’s largest two wheeler maker, Hero Motocorp has announced price hikes across its range of motorcycles and scooters. The price hike is being undertaken to offset the impact of rising commodity prices. 

The price hike will be upto ₹3,000 across the range and will be effective from September 20. Meanwhile, the company is optimistic about demand on the back of the upcoming festive season.

Aviation stocks fly as air traffic improves

The domestic air passenger traffic saw a 34% month-on-month growth to 67 lakh passengers in August as more people took to the skies amid easing restrictions and declining cases. However, the total number of passengers was still below March ’21 levels of 78 lakh fliers, before the second wave hit the country. 

Shares of market leader Indigo (+10.3%) and budget carrier Spicejet (+3.6%) rose sharply coupled with high volumes indicating strong buying interest.