Morning update for 24 December 2020

Indices at 10:00 am

      Nifty50 13,705 ▲ 104 (+0.7%)  

       Sensex 46,773 ▲ 329 (+0.7%)

Nifty Bank 30,318 ▲ 435 (1.4%)

In the news

100% FDI allowed in DTH 

• The government has approved 100% foreign direct investment in the direct-to-home sector. The earlier limit was set at 49%. Further, the permissible duration of the license has also been extended from 10 years to 20 years. 
• The news triggered strong buying interest in Dish TV (+11.4%), Hathway Cable (+9.6%) yesterday. 

Strong rise in Airtel subscribers

• In October, Airtel and Jio added 36.7 lakh and 22.3 lakh subscribers, respectively. This is the second consecutive month when Airtel added the highest number of subscribers among all telecom service providers. 
• Meanwhile, Vodafone Idea lost about 26.6 lakh subscribers. This dip comes after the loss of 46.6 lakh users in September. Shares of Airtel (+2.7%) and Reliance (+0.9) were firm today, whereas Vodafone Idea (-1.9%) lost ground.

Mrs. Bectors IPO delivers stellar returns

• Mrs. Bectors IPO listed at ₹501.0 at a premium of 73.9% over its issue price of ₹288.  At the time of publishing this newsletter, the stock was trading at ₹601.2.  
• The bumper listing does not come as a surprise given the issue was subscribed a whopping 198 times and the overall market is bullish so far today.

Dow rises as jobless claims drop

• In the US, the initial claims for state unemployment benefits fell to 8.03 lakh, which was better than the street’s expectation of 8.85 lakh. 
• The Dow gained 0.3% and shrugged off the threat of President Trump refusing to sign the ~$900bn relief bill and asking it to be amended.

Sectoral indices

Fact of the day

Coke used to have as much caffeine as Red Bull. Put another way, Coca-Cola pioneered the energy drink concept more than a century ago.

Source: TIME Magazine

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