Market recap for 15 December 2020

Nifty50 13,567 ▲ 9 (+0.0%) 

Sensex 46,263 ▲ 9 (+0.0%) 

The markets just about managed to close in the green after being in the red for most of the day. While the performance of the Nifty50 was lacklustre, renewed interest was seen in midcap stocks, with the Nifty Midcap 100 index rising 0.4% today. 

Among the Nifty sectoral indices, Media (+1.7%) and Metal (+0.7%) were top gainers whereas PSU Bank (-1.4%) and FMCG (-1.2%) fell. After a recent run-up, major FMCG stocks such as HUL (-2%), ITC (-1%) and Nestle (-2%) fell on some healthy profit-booking.

Top gainers (Nifty50)

Top losers (Nifty50)

Here are the top stories for the day.

Mrs. Bectors IPO oversubscribed on day 1

• Burger King IPO’s massive oversubscription and 170% return on its issue price seems to be causing a major FOMO among investors. It is not hard to have FOMO for the upcoming IPOs. 
• Mrs. Bectors Foods IPO that opened today for the application was oversubscribed by noon. Its price band is ₹ 286-288 per share and the issue closes on 17 December. You can subscribe to the IPO through Upstox here.
• Meanwhile, consumer food companies such as Britannia (-0.4%), Nestle (-2%), DFM Foods (-0.2%) and Prataap Snacks (-0.7%) were trading in the red today.

Consumer durables power up

• Strong demand from tier-II and tier-III cities coupled with market share gains from unorganised players has led to a pick-up in demand for consumer goods. Further, a healthy festive season has boosted prospects for the December quarter performance. 
• Amid a volatile market today, shares of consumer durables companies—Crompton Greaves (+4.4%), Havells (+4.8%), VGuard (+3.4%), Whirlpool (+3.3%) and Voltas (+2.6%)—emerged strong. Now that commodity prices are rising, investors would like to see demand growth outstripping the raw material cost pressures.

Borosil Renewables surges on import duty levy

• Solar-glass maker, Borosil Renewables is shining for various reasons. An import tax of nearly 10% is likely to be levied for 5 years on textured, tempered, coated or uncoated glass imported from Malaysia. The company is the sole manufacturer in India for such types of glass. 
• The company is in the process of raising capital from institutions via a QIP and from its promoters via preferential issue. Its shares gained 6.1% today, after a 20% rise registered yesterday. 

Dilip Buildcon wins highway project

• Infrastructure company Dilip Buildcon gained 3.2% as it bagged a four-lane highway project in Gujarat from NHAI on a design-, build-, operate- and transfer basis. 
• The 50-km highway project costs approximately ₹882 crore and is required to be completed in 24 months and operated for a period of 15 years. ). 

Gold rises on stimulus hope

• Expectations are rife that a new round of US stimulus could be announced this week. This has made traders bullish on the yellow metal as more liquidity in the economy raises prospects of inflation, against which gold acts as a hedge. 
• Gold prices were up by approximately 1% today. The US stimulus could further weaken the US dollar index. It is generally observed that gold prices move inversely to the US dollar index.

Closing bell

For the last four trading days, the Nifty50 has been making long-legged doji candlesticks, a technical formation which indicates indecision. Depending on the placement of the pattern, it could also suggest a reversal. Meanwhile, global markets are giving mixed cues. Asian indices closed in the red, while European indices are currently in the green even as Germany and the Netherlands announced tighter restrictions over Christmas shopping in a bid to curb a rise in infections.

Good to know

What is a doji candlestick?

A doji refers to a candlestick formation when a stock opens and closes nearly at the same level. If the doji forms in an uptrend, it signals that the buyers are losing conviction. Similarly, doji in a downtrend signals that sellers are losing conviction.

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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.