Market recap for 31 December 2020

Nifty50: 13,981 ▼ -0.2 (-0.0%)

Sensex: 47,751 ▲ 5.1 (+0.0%)

The markets were lacklustre today and oscillated within a narrow band. Of the Nifty 50 stocks, 28 stocks declined for the day. 

Among the sectoral indices, Nifty Realty (+1.2%) and Nifty Media (+0.9%) were the top gainers, whereas Nifty PSU Bank (-0.4%) and Nifty FMCG (-0.4%) ended in the red. 

Here are the top stories for the day.

BHEL wins big-ticket orders for hydro projects

• State-owned Bharat Heavy Electricals Ltd (BHEL) has bagged two large orders cumulatively worth ₹3,200 crore. One is for electro-mechanical works for a hydroelectric project in Andhra Pradesh and the other is for pumpsets for lift-irrigation projects in Telangana. 
• BHEL is a market leader in pumpsets for hydroelectric power projects and commands a 45% market share. The stock gained 1.2% today. 

Jubilant Foodworks invests in Barbeque Nation

• Shares of Jubilant Foodworks were upbeat today after the company announced that it will invest ₹92 crore to buy almost 11% in the casual-dining restaurant chain Barbeque Nation. 
• The company, which also holds the master franchise for Domino’s Pizza, recently widened its spread and ventured into Chinese cuisine, biryanis and ready-to-cook sauces. Its stock gained 4.2% today and has risen over 65% in 2020.

Greenpanel soars on capex plans

• The wood-panel maker plans to invest ₹55 crore at its medium-density fibreboard (MDF) plants located in Uttarakhand and Andhra Pradesh. The capex will be funded through a mix of internal accruals and debt. 
• MDF contributes 76% of the company’s sales and in Q2, MDF sales grew 33% YoY. Greenpanel’s shares are trading at a lifetime high and have gained over 400% from their 52-week lows. The stock was up 2.9% today.

Tejas Networks bags large order

• The Bengaluru-based networking products maker was locked in the 5% upper circuit today after the company announced that it has received an order worth $13 million (nearly ₹95 crore) to supply broadband products. 
• This order from a South-East Asian telecom company is to be executed within the next 12 months and constitutes roughly 25% of the company’s FY20 revenues.

Closing bell

The last day of 2020 seemed like the quietest day of the year for the markets. Even the December derivative expiry did not result in any major movement. However, on an annual basis, the Nifty50  delivered nearly 15% returns in 2020, beating 12% in 2019 and 3.1% in 2018. The flood of liquidity and extremely low interest rates have helped equity markets across the world. However, the President of Bundesbank (German central bank) said that interest rates cannot remain low forever and the European Central Bank will raise interest rates if required. Let’s see what 2021 holds in store!

Good to know

What is a holding company?

A holding company is a company that owns the shares of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies to form a corporate group.

Wish you all a happy new year from Team Upstox! Have a wonderful 2021!

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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.