Morning Update for 3 March 2021

Previous close (2 March 2021)

Nifty50: 14,919 ▲ 157 (+1.0%) 

Sensex: 50,296 ▲ 447 (+0.9%)

Nifty Bank: 35,419 ▲ 123 (+0.3%)

In the news

Jio bids big in 4G spectrum auction

• Reliance Jio emerged as the largest bidder in the government’s 4G auction, with a bid worth ₹57,122 crore. Bharti Airtel and Vodafone Idea bought spectrum worth ₹18,699 crore and ₹1,993 crore, respectively.
• Through the auction, the government is likely to receive revenue of ₹20,000 crore in FY21. The news of the bid sizes came after market hours, but Reliance (+0.3%), Bharti Airtel (+1.7%), and Vodafone Idea (+2.7%) closed in the green on Tuesday.  

Govt to divest stake in Ircon via OFS 

• The government plans to sell 16% of its 89.1% stake in the construction and transport infrastructure company, as a part of its divestment strategy. 
• The offer for sale (OFS) is priced at ₹88 per share, which is at a 10% discount to Monday’s closing price. Shares of Ircon have gained around 12%, so far in 2021.

Banks get shareholder’s nod to raise capital

• Yes Bank will raise ₹10,000 crore to be used to support growth and maintain buffers to deal with any unforeseen impact. It had raised ₹10,000 in March 2020 from domestic financial institutions and ₹15,000 crore in July 2020 via a follow-on public offer (FPO). Shares of Yes Bank closed flat yesterday.
• Similarly, the government-owned Indian Bank will raise ₹4,000 crore via a qualified institutional placement, FPO, rights issue or in combination. Shares of Indian Bank closed 0.2% higher yesterday.  

MTAR gets anchor investors before IPO

• The Hyderabad-based precision engineering company has reportedly raised ₹179 crore from anchor investors before opening its public issue. 
• The ₹596 crore IPO opens for subscription today at a price band of ₹574-575 per share, with a minimum lot size of 26 shares. You can subscribe to the IPO with Upstox here.

Events of the week

• Wednesday: Services PMI (India), Crude oil inventories, Services PMI (US)
• Thursday: Initial jobless claims (US)

Sectoral indices (Previous closing)

Global markets (at 8:30 am today)

Fact of the day

The term ‘Ponzi scheme’ is named after a real person, Charles Ponzi, who ran a pyramid scheme in the USA in 1920.
Source: History Channel

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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.