Breather for telcos

Nifty50: 17,519 ▲+139 (+0.8%)
Sensex: 58,723 ▲+476 (+0.8%)

Markets hit record highs today supported by broad-based buying. Of the Nifty’s 50 stocks, 35 closed in the green. 

Among the Nifty indices, all indices made gains except Media (-1.5%). PSU Bank (2.8%) and IT (1.8%) were top gainers. 

Here are the top stories of the day.

Relief for telecom players

The union cabinet has approved a moratorium of four years for adjusted gross revenue (AGR) dues that telecom majors owe to the government. This especially comes as a big relief to loss-making and debt-ridden Vodafone Idea, which can now postpone the payment of the dues.  

 Two of three major telecom players Vodafone Idea and Bharti Airtel reportedly owe AGR dues worth ₹58,254 crore and ₹43,980 crore. In the backdrop of this development, shares of Vodafone Idea and Bharti Airtel were up 4% and 4.8%, respectively, coupled with high volumes.  

Spicejet shares jump on new route additions

Budget carrier SpiceJet shares jumped around 5.7% as it announced new domestic and international routes, as per reports. 

In another development in the aviation sector, TATA group and SpiceJet chairman (in his personal capacity) are expected to bid for debt-laden national carrier Air India and its subsidiary Air India express. The debt of Air India stands around ₹43,000 crore but the centre has assured that it will bear the debts before the handover. 

Sansera IPO fully subscribed on day 2

The component maker’s initial public offering (IPO) was completely subscribed on day 2. The public issue received strong interest from individual investors with the retail portion being oversubscribed 1.5 times. 

The ₹1,283 crore IPO’s price band for this IPO is between ₹734 and ₹744 per share and involves a minimum investment of ₹14,880 for a lot of 20 shares. The issue closes tomorrow. You can apply for this IPO by clicking here.  

Closing bell

Despite negative cues from the major international indices, Indian markets continued their uptrend. The relief measures announced for the telecom sector and the production-linked incentive scheme for the auto sector boosted the overall sentiment. Further, the retail inflation is under control. Lastly, compared to the US, UK and Germany which have witnessed a spike in new cases, India has been able to control the spread. These are some of the factors that are helping to maintain investor confidence and keep the markets high.  

Good to know

What are futures contracts?

Futures are derivative contracts under which a buyer and seller of an asset are obligated to transact a predetermined quantity, at a fixed price and on a fixed date. The transaction has to be completed at the predetermined price, irrespective of the current price of the asset. The underlying assets for futures contracts could be stocks, indices, commodities or even currencies. These contracts help to hedge against any sharp fall or rise in the price of assets. Traders use futures contracts to speculate about the future price of assets. 

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Investment in securities markets is 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.