Market recap for 11 January 2021

Nifty50: 14,484 ▲ 137 (+0.9%)

  Sensex: 49,269 ▲ 486 (+1.0%)

The markets had a strong gap-up opening and were able to sustain the rise till the close. 31 of the Nifty50 stock rose, indicating index-wide participation in the rise. 

Amongst the sectoral indices, Nifty IT (+3.3%) and Nifty Auto (+2.6%) were the top gainers whereas Nifty Media (-1.5%) and Nifty PSU Bank (-1.5%) were the top losers.

Here are the top stories of the day.

Vehicle registration rise in December 

• The Federation of Automobile Dealers Associations of India (FADA) said that the total vehicle registrations in December rose by 11% YoY backed by festive spillover demand and pre-buying ahead of expected price hikes in January. This is the first time growth was registered this fiscal.
• Sales of passenger vehicles and tractors grew the most, 24% and 35%, respectively. What is encouraging is that the dealer-level inventories have reduced, leaving room for growth for automakers. Shares of auto companies were upbeat as Tata Motors (+12.6%), Ashok Leyland (+3.5%), Maruti (+2.6%), Bajaj Auto (+2.7%) and M&M (+2.3%) saw strong gains.

Apollo Microsystems jumps on defence order 

• The news of a ₹50 crore order from Bharat Electronics Limited (BEL) sent the shares of Apollo Micro Systems soaring nearly 20% intraday. The company manufactures electromechanical components for public and private sector companies that fall under the Ministry of Defence.   
• The company’s shares hit a new 52-week high of ₹155.20. It also saw a nearly 33 times surge in average volumes on the BSE. The stock closed with gains of 13.8% today.

BHEL bags large order 

• The heavy electricals maker received a ₹450 crore order for a steam and power plant from the National Aluminium Corporation Limited (NALCO).
• BHEL is India's largest manufacturer of power-generation equipment and has installed over 1,90,000 MW of power plant equipment globally. Shares of BHEL dipped by 0.5% today, But in Q3 they gained nearly 23%.

Fertilizer stocks see strong investor interest

• A good monsoon season, surplus reservoir levels and high Kharif crop sowing have boosted the demand for fertilizers and agri-chemicals, reports suggest. Recently, state-owned National Fertilizers reported that it achieved the highest ever urea production at 9.9 lakh MT in Q3.   
• Shares of National Fertilizers (+16.5%), FACT (+20.0%) and Madras Fertilizers (+19.8%) saw a strong rise coupled with an increase in volumes today. 

Closing bell

The Indian markets experienced a strong tailwind from the rise in the IT stocks, which were upbeat after TCS declared its results. Amid this, it has comfortably ignored the negative cues from the European markets, as major western indices are trading in the red. The year 2020 was as volatile as one could imagine. However, the coming month may be no different owing to the Q3 results of major companies, Budget 2021 and the RBI’s policy meet. These events would keep Indian markets focused inwards and less impacted by movements in the global equity markets.

Good to know

What is delisting?
Delisting is the withdrawal of a company's stock permanently from the stock exchange so that it can no longer be publicly traded. Typically, bankruptcies, failure to comply with exchange requirements, takeovers or mergers, stock performance are key factors that often lead to delisting.

Yay ? or  ? Nay?
We'd love your thoughts on this market recap.

Haven't tried out Upstox yet? Click here to open your account now!

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.