Market recap for 26 March 2021

Nifty50: 14,507 ▲ 182 (+1.2%)
Sensex: 49,008 ▲ 568 (+1.1%)

After a gap-up opening, the markets remained positive throughout the day. Of the Nifty50 stocks, 43 ended in the green, indicating broad-based buying.

All the sectoral indices closed positively, with the Nifty Metal (+3.6%) and Nifty FMCG (+1.8%) indices being the top gainers for the day.

Here are the top stories of the day.  

Hathway falls on OFS by promoter entities

• Shares of Hathway Cable and Den Networks witnessed a sharp decline in prices after their promoter entities reduced holdings in the companies through offers for sale (OFS) to comply with minimum public shareholding norms.
• The promoter entities belonging to RIL will sell about 19% stake in Hathway Cable and 11.6% stake in Den Networks. While Hathway Cable shares were down 10.4%, those of Den Networks closed 7.6% lower.

Tata Group stocks surge on SC verdict

• Stocks of Tata Group companies witnessed buying interest after the Supreme Court ruled in favour of Tata Sons in the case against Mistry. The verdict sets aside the NCLAT order to reinstate Cyrus Mistry as the executive chairman of the Tata Group. 
• The Group’s stocks such as Tata Steel (+5.8%), Tata Motors (+3.9%) and Titan (+3.7%) were among the top gainers in the Nifty50. Meanwhile, shares of Tata Power, Tata Communications and Tata Coffee gained 4-5%.

Welspun surges on rating upgrade

• Shares of textile maker Welspun India gained 8% after India Ratings & Research upgraded the company’s rating from IND -AA to IND AA. 
• The upgrade comes on account of better-than-expected deleveraging of the company’s balance sheet through improved capacity utilisation and operational performance. 

Kalyan, Suryoday SFB list at discounts

• Compared to the flying start seen in the IPO listings earlier this year, shares of Kalyan Jewellers (KJ) and Suryoday Small Finance Bank (SSFB) debuted on the NSE at discounts of 15% and 4% on their issue price, respectively. 
• Both IPOs were oversubscribed more than two times. While KJ raised ₹1,175 crore through its maiden issue, SSFB’s issue garnered ₹582 crore.

Closing bell

Positive cues from international equity markets and buying interest after the recent correction helped the Indian markets to stage a comeback today. However, neither the Nifty, nor the Sensex were able to move past their yesterday’s high, and thus do not lend enough strength to the bounce. 

Next week is a short one since the markets are closed on Monday and Friday. Since no major domestic data release is expected, the markets are likely to move based on developments in India’s Covid wave, along with movements in the international market.

Good to know

What is a SPAC?

A Special Purpose Acquisition Company (SPAC) is a company created to acquire another business and take it public. It is an alternative to an initial public offering (IPO). The acquiring company itself has no commercial operation of its own. A SPAC can raise money from investors such as private equity funds or even the general public. It helps the acquired company to get listed faster. 

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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.