Market recap for 2 December 2020

Nifty50 13,113 ▲ +4.7 (+0.04%)

Sensex 44,618 ▼ -37.4 (-0.08%)

It was a see-saw session for the markets today. The first half witnessed selling pressure in the banks. Kotak Mahindra Bank (-3.3%), HDFC Bank (-1.9%) and ICICI Bank (-1.1%) declined and pulled down the Nifty Bank index. However, buyers emerged strong during the latter half and the markets recovered almost completely. Among the sectoral gainers, the Nifty Realty (+2.9%) and Nifty Metal (+2.5%) indices rose supported by Phoenix Mills (+11.4%), DLF (+3.2%), Tata Steel (+3.0%) and JSW Steel (+2.6%).

Top gainers (Nifty50)

Top losers (Nifty50)

Here are the top stories for the day.

UK approves Pfizer's Covid-19 vaccine

• The United Kingdom is the first country to approve Pfizer/BioNTech’s Covid-19 vaccine. The first doses of the vaccine are expected to be rolled out across the UK from next week.
• This vaccine, which is shown to have 95% efficacy, will be given to frontline health care workers and nursing home residents first, followed by older adults. The key challenge that is likely to get limelight is the distribution of the vaccine since it requires ultra-cold storage temperatures. 
• Meanwhile, shares of Pfizer were up 3% today. As per reports, airline company Spicejet (+3.0%) has announced that it is gearing up to provide temperature-controlled logistics support. Similarly, shares of logistics major Bluedart (-0.9%) and Snowman Logistics (-1.7%) have also been in the limelight recently.

Metals shine as demand outlook improves

• As global economic recovery picks up the pace and China’s manufacturing activity expands, metal prices are on the rise. Global copper prices rose ~12% in November 2020.
• Back home, steel companies have hiked prices by ₹2,500 to ₹2,700 per tonne for December due to rising iron ore prices and strong demand.
• Strong gains were seen today in metal stocks coupled with an increase in volumes. Large caps Tata Steel (+3.0%) and JSW Steel (+2.6%) were up today. Midcaps Hindustan Copper (+6.1%) and National Aluminium (+4.5%) also registered gains.

Burger King IPO oversubscribed on day one

• The ₹810 crore IPO of the QSR chain Burger King got fully subscribed on the very first day with high retail interest. You can apply for the IPO with Upstox here. 
• So far this year, 12 companies have debuted on Dalal Street. Of these, 11 have delivered positive returns in the range of 4% to as high as 210%.

Closing bell

The banks showed some signs of weakness today, ahead of the RBI’s interest rate decision on Friday. However, positive news on the vaccine front brought back cheer to the markets, in general. The sudden rise in Gold prices makes one wonder if it is just the odd rebound, or whether investors are looking for safety (for reasons unknown at present) after a steep rise in global equities in November. 

Good to know

What is an Initial Public Offering (IPO)?

When a company issues shares to the public for the first time, it is called an initial public offer or IPO. Through an IPO, a company transitions from an unlisted entity to a public or listed company. One can subscribe to an IPO by using their broking account.

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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 by RKSV group. Investors should consult their investment advisor before making any investment decision.