Market Movers: Soaring inflation is coming to the coffee shop near you

Prices of Arabiata coffee have hit their highest level in over a decade recently. This is likely to be passed on to consumers by companies, given that consumers will pay top dollar for their morning dose of caffeine or else half of the world would just be in a bad mood.

That is beneficial for Indian coffee makers and retailers alike. Investors have already got a whiff of the guilt you are going to feel when your Starbucks Grande burns a hole in your pocket. Shares of

soared over 9 per cent in trade today, reflecting optimism among investors that the company’s earnings will look much sweeter this quarter.



Rock bottom for ?

The private sector lender had one of its worst days since listing after the RBI placed its staff on the lender’s board to help it steer the ship. The move sent shockwaves among investors as it also involved the sudden departure of the CEO and MD.

While the bank has assured RBI’s move has nothing to do with asset quality issues or corporate governance and the regulator itself clarified that the bank is in a stable condition, investors weren’t in the mood to buy any of the arguments.

The stock closed 18 per cent lower after tanking over 25 per cent during the day. From investors’ perspective, the past appointment of RBI staff on a lender’s board has been an omen of worse things to come and they would have preferred if the bank did not let the development occur in the first place.

The comeback kid

Once the darling of the Street when infrastructure companies were as highly regarded as bank stocks recently,

is steadily making a comeback to the limelight.

The company has steadied the ship after the debt debacle it went through over the better part of the past decade and having trimmed its balance sheet, it looks set for a rejuvenated bid for a return to the glory days.

Its case has been helped by the fact that Kotak Institutional Equities added the stock to its midcap model portfolio betting on the company to benefit from the reopening of the economy and increase in airline travel. Investors took the cue as they helped the stock rise nearly 8 per cent on the day.