Stock Market Update 20 september 2021

 

▼ Nifty 17,396 (-1.0%) ▼ Sensex 58,490 (-0.8%)

After a gap down opening, markets managed to turn positive on an intraday basis. However, selling pressure resumed and indices closed negative. 43 of the Nifty50 stocks closed in the red, indicating broad-based selling. Among the Nifty sectoral indices, Metal (-6.6%) and PSU Bank (-4.1%) were the top losers. While, Nifty FMCG was the only index which closed in green (+0.9%).  Top gainers (Nifty50) HUL ▲ 2.8% Bajaj Finserv ▲ 1.0% ITC ▲ 0.7% Top losers (Nifty50) Tata Steel ▼ 10.0% JSW Steel ▼ 7.6% Hindalco ▼ 6.1% Here are the top stories of the day. For more updates on F&O, click here. Kotak Bank buys stake in KFin The private lender has acquired around 10% stake in KFin Technologies for ₹310 crore. Kotak Bank’s management reportedly said that the KFin is well-positioned to continue growing its market as it is a platform of choice for asset managers, investors and corporates.  KFin, mainly provides registrar and transfer agency services, had a turnover of ₹481 crore in FY21. Meanwhile, shares of Kotak Bank were down 0.5% today, but have gained nearly 14% so far this month. Hotel stocks see strong investor interest Shares of Indian Hotels (+7.8%), EIH (+3.0%), Taj GVK (+5.5%) jumped sharply in an otherwise weak market. The rise in the stock price was coupled with high volumes, indicating strong buying interest.  Experts believe that the hospitality business could be back to pre-Covid level toward the end of this fiscal, provided there is no third wave. Further, easing restrictions and pick-up in travel could aid recovery in the sector. RVNL rises on merger reports According to reports, a proposal has been mooted to merge the state-owned Rail Vikas Nigam (RVNL) with IRCON. This proposal of merger is a part of a report relating to rationalisation of government bodies.  Besides this, RVNL bagged a contract worth ₹1,034 crore for design and construction of elevated viaducts of metro stations project in Indore. In the wake of these developments, shares of the company rose 1.3% today. Closing Bell! The fear that Chinese real estate major Evergrande could default on its interest payments raised concerns of slowdown in the Chinese housing market and consequent impact on the demand for commodities. The rub-off effect was seen in Indian metal stocks. Further, shares of banks were also under pressure as they could be vulnerable to any global financial shocks. Meanwhile, traders must brace for higher volatility in the coming weeks as indicated by the India VIX, which rose 15% today. Good to know What is an IPO registrar? An IPO-bound company ropes in a registrar, which is an independent financial institution, for keeping a record of the ownership and issue of the shares. Their responsibilities also involve the processing of IPO applications, allocating and transferring shares to demat accounts and refunding the money. Investors can get in touch with the registrar of an IPO-bound company before or after the issue for any queries and complaints.

Read More

Market Recap for 03 March 2021

 

Nifty 15,245 ▲ 326 (+2.1%) Sensex 51,444  ▲ 1,147 (+2.2%)

The markets opened with a gap-up today, and after some initial weakness, steadily rose to close about 2.2% higher. With today’s gain, both the Nifty50 and Sensex have fully recouped the losses made on Friday. In all, 43 of the Nifty50 stocks advanced today. Except for the Nifty Auto index (-0.6%), all sectoral indices closed in the green today, with the Nifty Metal (+3.3%) and Nifty PSU Bank (+3.1) posting the strongest gains. Top gainers (Nifty50) Tata Steel ▲ 5.3% Bajaj Finserv ▲ 4.9% Reliance ▲ 4.8% Top losers (Nifty50) Hero MotoCorp ▼ 1.5% Maruti ▼ 1.1% Bajaj Auto ▼ 1.1% Here are the top stories of the day. Sugar shares gain on rising global prices Shares of sugar manufacturing companies such as Bajaj Hindusthan (+20.0%) and Dwarikesh Sugar (+10.0%), Shree Renuka (+9.6%) and Triveni Engineering (+4.3%) were upbeat today. Globally, sugar prices have risen nearly 30% in the last six months due to supply concerns from Brazil, the world’s largest sugar producer. Further, the firmness in sugar prices is accentuated by expectations of lower than anticipated surplus stocks in India, which is the second-largest producer. Any rise in exports from India will further reduce inventory and could trigger a price rise in domestic markets. Forging stocks up on spurt in US truck sales A three-fold YoY increase in sales of heavy trucks in the US led to a surge in stocks of Indian forging companies such as MM Forgings (+7.3%), Ramkrishna Forgings (6.0%), and GNA Axles (+0.5%). These companies derive 53%, 40% and 35% of their revenues from exports, respectively. In 2020, March, April and May had a severe negative sales impact due to Covid. Thus, the low-base effect could play a part. Reports suggest that sales of heavy trucks will be in the range of 2.5-2.8 lakh units in 2021, about 4-8% higher than earlier estimates. RPP Infra surges on big-ticket orders RPP The Chennai-based construction company today announced four order wins totalling up to ₹1,000 crore. After the news broke, the stock jumped about 12% intraday before closing 4.9% higher. All four orders are in the state of Tamil Nadu and are a mix of water resource and highway development projects. With the new order wins, RPP’s outstanding order book stands at ₹3,200 crore, more than 5 times its FY20 revenues. MTAR Tech IPO oversubscribed on Day 1 The initial public offer (IPO) of MTAR Technologies was oversubscribed by 3.7 times on the first day of the issue. The Hyderabad-based precision engineering company manufactures equipment for the defence, aerospace and nuclear energy sectors. The IPO is open for bids till 5 March 2021 at a price band of ₹574-575 per share. You can apply for it here. Closing bell The markets zoomed past last week’s high and shrugged off the negativity created by the spike in the US treasury bond yields. The rise in the markets was also supported by positive cues from the Asian and European markets. While the situation looks hunky-dory, traders must continue to watch out for any adverse movement in the US treasury yields and prices of major commodities such as copper, as these could affect overall investor sentiments. Good to know What is active fund management? Active fund management is an investment approach that purposely shifts funds either between asset classes (stocks, bonds, etc.), sectors (sector rotation), or between individual securities (security selection) in order to seek superior returns.

Read More

Morning Update 22nd February 2021

Previous closing (19 February 2021)

Nifty50: 14,981 ▼137 (-0.9%)

Sensex: 50,889 ▼434 (-0.8%)

Nifty Bank: 35,841 ▼ 745 (-2.0%)

---

In the news

Jubilant gets larger slice of Domino’s pie

• The master franchisee of Domino’s Pizza (DP) in India will now buy a 32.81% stake in the American chain’s Eurasia business. This extends Jubilant Foodworks’ (JF) footprint as a franchisee holder into Turkey, Russia, Azerbaijan and Georgia.   
• The acquisition, pegged at 24.8 million pounds, will give JF access to a total of 771 stores, comprising dine-in, delivery and takeaway outlets. Last week, JF’s stock gained over 5%, in a weak market, and closed at its lifetime high. 

 

Maruti to capitalise on CNG demand 

• Soaring fuel prices have accelerated the demand for vehicles running on compressed natural gas (CNG). That’s a trend that the country’s largest carmaker aims to tap into. The company expects to sell 1.55 lakh CNG-powered vehicles this fiscal, a 50% YoY growth.  
• As per Maruti, the cost to run a CNG vehicle comes to ₹1.5/km versus about ₹4/km for petrol/diesel-powered vehicles. In addition to lower running costs, the increasing penetration of CNG filling stations in the country has also helped boost the alternative fuel. The shares of Maruti Suzuki lost 3.2% last week.   

 

Marico upbeat about demand revival

• After a relatively positive Q3, the maker of Parachute oil is optimistic about demand revival and growth in rural markets to drive business going forward. In fact, it aims to deliver mid-teen growth in volumes in the upcoming quarters.  
• However, the FMCG major expects a transient pressure on margins owing to rise in raw material costs. It expects to clock up to ₹500 crore (from around ₹350 crore expected in FY21) from its health and immunity foods segment in FY22 where it has launched several new products recently. The stock gained about 3.2% last week. 

 

FPIs continue buying spree om

• Foreign portfolio investors (FPIs) pumped in a total of ₹24,204 crore into the Indian equity markets in February so far. The figure for January was ₹19,473 crore.  
• As per reports, the buying spree is on account of high growth expectations from India in 2021, coupled with a positive Q3 results season and a pro-growth Budget. Emerging markets such as India are likely to continue receiving foreign investments as long as global central banks maintain their accommodative stance in order to revive their economies. 

 

Events of the week

• Wednesday: New home sales, Crude oil inventories (US)
• Thursday: Initial jobless claims, Pending home sales (US)
• Friday: GDP (India)

---

Sectoral indices (Previous closing)

Top gainers	Top losers
NA	Nifty PSU Bank ▼ 4.7%
NA	Nifty Auto ▼2.6%

Global markets (at 8:30 am today)

Indices	Today's movement
Nikkei 225 (Japan)	▲ 0.7%
Hang Seng (Hong Kong)	▲ 0.2%
SSE Composite (China)	▲ 0.0%
Dow Jones (US) (19 Feb)	▲ 0.0%

Fact of the day

Tata Airlines–founded by J. R. D. Tata–was India’s first air service flight. It was rechristened Air India in 1946 and nationalised in 1953.
Source: Economic times

If you haven't already, open your Upstox account to get IPO-ready today! Click here to sign up.

---

Disclosures and Disclaimer

Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice. Investors should consult their investment advisor 

Read More

Indian Railway Finance Corporation - RailTel IPO

 After the Indian Railway Finance Corporation, we have another railway-related company about to get listed - Railtel Corporation of India. The government wholly owns it and it is an information and communications technology ("ICT") infrastructure provider that falls under the Ministry of Railways' administrative control.

The RailTel IPO is available for subscription from 16th to 18th February 2021 & you can apply for this by clicking - invest.upstox.com/ipo/

Here's more information on RailTel to make an informed decision:

RailTel was set up to modernise telecom systems for the railways by creating an optic fiber-based broadband network along railway tracks. As of 30th June 2020, its optic fiber network covers over 55,000 route kilometres and covers 5,677 railway stations across India.

In FY20, the company generated about 25% of its revenues, or ₹283 crores, from projects with the Indian Railways. The company claims to be net-worth-positive since inception. It is valued at ₹1,369.3 crores in FY20. Its operations are funded entirely by internal accruals since Fiscal 2013 and the company is debt-free. Its financials have steadily risen too. Revenues from operations have grown at a CAGR of 7.4% during FY18-20, with the company clocking ₹1,128 crores in the last fiscal. In FY20, RailTel reported a net profit margin of 13%. For reference, margins for Reliance Jio Infocomm Limited and Tata Communications Limited stood at 10% and 4%, respectively.

Price band: ₹93-₹94

Lot size: 155 equity shares

Issue date: 16 - 18 February 2021

Allotment date: 23 February

You can learn how to apply for an IPO by clicking here

Read More

Morning-update-for-15-february-2021

 Previous closing (12 February 2021)

Nifty50: 15,163 ▼10 (-0.0%)

Sensex: 51,544 ▲ 12 (+0.0%)

Nifty Bank: 36,108 ▲356 (+1.0%)

---

In the news

ONGC's posts a weak Q3

• While crude oil prices are rising at the moment, they are still lower than what they were in Q3 of last fiscal. For ONGC, the per-unit realization for crude oil and gas were 25% and 45% lower on YoY basis, respectively. 
• Its standalone profit was down 67% YoY to ₹1,378 crore and revenues stood at ₹17,024 crore, down 28%. Last week, its shares fell 0.6%. However, they are up nearly 10% this month. 

 

IRFC announces strong quarter plus dividend

• The recently listed Indian Railway Finance Corporation emerged strong in Q3, reporting a 15% YoY growth in net profit to ₹1,046 crore. Its revenue from operations at ₹3,932 crore rose 8% during the same period.
• After a tepid listing, the company has declared a dividend of ₹1.05 per share. The share still trades below its issue price of ₹26, and closed flat on Friday.

 

Sunteck sees improved demand in Q3

• The Mumbai-based realty developer posted revenues of ₹205 crore up 20% YoY. However, the company’s net profit contracted 12% to ₹22 crore during the same period. Sequentially, however, net profit rose 59%. 
• The company saw improved demand across completed and new projects in Q3. The stock closed 1.8% lower on Friday, but has gained nearly 186% this month.  

 

Inflation and IIP show improvement

• The retail inflation eased to 4.06% in January versus 4.59% in December, mainly due to moderation in food inflation. The street had forecasted 4.45% for January. 
• Meanwhile, the IIP, which indicates industrial activity in the economy, rose 1% in December (versus a contraction of 2.1% in November). The numbers are higher than the street’s forecast of a 0.2% decline. The improvement was driven mainly by growth in manufacturing and electricity.

Events of the week

• Monday: Wholesale Inflation (India)
• Wednesday: Retail sales (US)
• Thursday: Crude oil inventories, Initial jobless claims (US)

---

Sectoral indices (Previous closing)

Top gainers	Top losers
Nifty Bank ▲ 1.0%	Nifty Metal ▼ 1.7%
Nifty Fin Serv ▲ 0.9%	Nifty FMCG ▼1.5%

Global markets (at 8:30 am today)

Indices	Today's movement
Nikkei 225 (Japan)	▲ 1.1%
Hang Seng (Hong Kong) (11 Feb)	▲ 0.4%
SSE Composite (China) (10 Feb)	▲ 1.4%
Dow Jones (US) (11 Feb)	▲ 0.0%

Fact of the day

Nokia was once famous as a manufacturer of toilet paper and car tyres.

Open free Demat Account

Read More