Nifty reduces RIL's weightage :
HDFC Bank has replaced Reliance Industries to become the highest weighted stock on the bourses.
RIL’s weightage on Nifty50 slipped to a low of 9.82% while that of HDFC Bank has gone up to 10.15%. In its prime, RIL's weightage was as high as 15%.
Infosys holds the third position with a weightage of 8.61% on the index. It is followed by HDFC Ltd and ICICI Bank with 7.86% and 6.02% weightage respectively.
RIL has lost its steam off late citing the legal tussle with Amazon over the future retail deal. It has thrown a spanner in RIL's ambitions of turning itself from an oil and gas conglomerate to a telecom and retail giant. Now, RIL will need to deliver on this front for further re-rating.
Correction in poultry stocks :
As per the latest report, as many as ten states have reported cases of bird flu. It has hit the sale of bird meat, including chicken, and eggs across the country.
According to Mr Atul Chaturvedi, the secretary of the animal husbandry department, bird flu is a common phenomenon. It occurs every year as migratory birds bring the infection to India from across the world.
The flu has led to bird culling and a reduction in the prices and demand for chicken and eggs. It has harmed poultry stocks like Venky's and Godrej Agrovet. The government has announced that it is safe to eat fully cooked eggs and chicken.
The Government’s announcement should help these stocks to recover after an instant correction over the last week. The bird flu has indeed become a common occurrence. But, on top of the pandemic, it is creating a new wave of fear.
Indian companies fared much better during the pandemic :
During the months of the pandemic, Indian companies fared much better than their global counterparts. Cognizant’s Centre for the Future of Work has put this forward in its report.
During 2020, 36% of Indian companies reported a slight negative to very negative impact. The regional average was much higher at 44%.
India also had the highest revenue from digital channels among APAC countries at 12%. It is further expected to increase to 17% by 2023. The report also found that 52% of Indian companies are open to adopting digital for their businesses. This number is the highest among APAC countries.
The report highlighted the importance of digital infrastructure. Its adaptation is going to be the key to the success of future businesses. The jobs of the future are expected to become more specialized and will need greater technical expertise.