What to buy in the stock market this week?
Opinion
Last week, the stock market was choppy. The market hit an all-time high of ~15910 but then saw minimal corrections for the first four days and closed higher on Friday, with Nifty finally settling around 15722. There were no major moves as markets wait for the next big news to take a decisive direction. Let’s look at some contracts that’ll keep the traders interested next week - and discuss what you should buy, hold and sell!
IPOs
Two IPOs are set to hit the markets next week:
Clean Science and technology
GR Infraprojects
Both the shares are expected to open at higher values given their high price in the gray markets and the excessive bids placed during the IPO subscription. The long-term view for Clean Science and tech is particularly strong. So my suggestion is to hold!
The vaccination numbers are strong, with India becomes the country with the second-highest number of doses administered so far. The unlock process is going at a rapid pace and the economy is recovering. This is expected to boost investor confidence and rally Nifty.
The weekly chart is still making higher highs. The global markets also seem bullish, which should help push Nifty further. So fundamentally, one should hold a majority of their equity portfolio in the upcoming week. Moreover, the markets formed a hammer in the candlestick patterns on Friday, adding to the positive signs.
Gold
The prices at which Gold is trading are historically good support levels. Last week, the strong bearish trend was also halted and the market saw some buying. If you’re not holding the commodity, this would be a great time to buy Gold futures. If you’re low on capital, consider buying Gold Petal to express your view on the markets. Here’s a weekly chart!
Watch this out!
Last week, we recommended the readers to buy Maruti, TCS and Delta Corp. In the upcoming week, both of these stocks will post their quarterly earning and high-volume trading days are expected. The IT sector remains bullish as ever and my recommendation would be to hold the IT equities. An entry is difficult because the stocks are trading very high values.
Apart from this, OPEC seems to have reached a deadlock on output. With crude oil already trading at 2.5-year highs, this might push the prices higher if an agreement is not reached in the Monday meeting.
As long as Nifty holds 15700, these are good buying days! Is there any particular stock you’re confused about?
Pemex’s ‘Eye of fire’: Oil companies and ecological disasters
Sustainability
July 3, 2021, saw many of us wake up to viral videos of what looked like Dante’s Inferno on the ocean surface near the Gulf of Mexico. Endearingly named ‘The eye of fire’, it was caused by a gas leak in Ku Maloob Zaap, an oil field operated by Pemex. Although no casualties (to human life) were reported, the fire took 5 hours to extinguish completely.
Ninth most polluting company globally
This is not the first time that Pemex, a Mexican state-owned petroleum company, is being associated with a large-scale ecological disaster. For a start, it came 9th in the list for Top 10 most polluting companies globally and the most polluting company in Latin America, contributing 1.67% of the total greenhouse gas emissions in the world.
Not the first time for Pemex!
From 1979, Pemex was the root cause for almost 10 extremely devastating accidents, from causing one of the largest oil spills in history to an explosion of a pipeline killing almost 137 people in a Mexican village.
In December 2020, it was also reported that Pemex is no longer an active participant at Oil and Gas Climate Initiative (OGCI), the oil industry’s key climate change group.
Pemex is just one of the 20 companies which are collectively responsible for the emission of 35% of the greenhouse gases into the environment, that is 480 billion tonnes of carbon dioxide and methane, mainly from the combustion of their products.
In terms of oil spills and pipeline accidents, it joins the hall of fame along with peers like TransCanada Corporation, Royal Dutch Shell, BP and ExxonMobil.
Retribution?
These companies are typically fined for these accidents. The fine depends on the country, the intensity of the spill and most importantly, the assessment of damage to natural resources. Obtaining this data of the impact of a spill is marred by bureaucratic red tape, long timelines and uncertainty over the very assessment of the damage.
Is it enough though?
A fine however is a reactionary measure and has done little to prevent oil giants from messing up our environment. For instance, BP was fined a whopping USD 7.8 billion for Deepwater Horizon Oil Spill, the largest recorded marine disaster and still went on to cause 2 more oil spills post that.
With the current heatwave that is being experienced in the Northern Hemisphere and Antarctica recording its highest temperature at 18.3 degrees Celsius, climate change and global warming have become a sobering reality.
In these times when we should be doing everything in our control to set up environmental restoration measures, we simply cannot afford another oil spill or a gas leak. In the light of this, one overarching question remains:
How to make these oil giants more accountable for the damage that they are causing?
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