Nifty50 13,392 ▲ 37 (+0.2%)
Sensex 45,608 ▲ 181 (+0.4%)
Today, the Nifty50 opened and closed at the same level. Technically, this implies indecision and suggests that both the bulls and bears were equally powerful. Meanwhile, PSU banks saw significant investor interest as some of them are set to raise funds from institutional investors via QIP issues. The PSU Bank index rose 7.1%. The Nifty Metal index (-1.2%) fell as Hindalco (-2.2%) and JSW Steel (-0.6%) saw profit booking.
Top gainers (Nifty50)
| Ultratech Cement | ▲ 3.0% |
| TCS | ▲ 2.0% |
| Reliance | ▲ 1.7% |
Top losers (Nifty50)
| Hindalco | ▼ 2.2% |
| Sun Pharma | ▼ 2.2% |
| Coal India | ▼ 1.8% |
Here are the top stories for the day.
Jet set
- Fliers might soon have one more carrier to choose from as Jet Airways is likely to be back in the skies in the summer of 2021. This time, it will also focus on cargo services, reportedly an under-served market.
- Jet’s stock stood locked at its 5% upper circuit today. Its resurrection also means more competition for Indigo (-0.0%) and Spicejet (+1.5%).
Day’s saviour
- The 2% rise in shares of Reliance Industries propped up benchmark indices in an otherwise wobbly market. At a recent event, Chairman Mukesh Ambani announced that RIL will roll out 5G in the second half of 2021.
- He added that with policy interventions, millions of 2G users could benefit from digital transformation through affordable smartphones.
Auto inventories
- Dealer-level inventories dropped in November, a healthy sign for the auto industry.
- Inventory for passenger vehicles stood at 25-30 days (versus 35-40 days in October), and for two-wheelers at 45-50 days (versus 50-55 days in October).
- Meanwhile, major auto stocks—Maruti (+0.1%), Tata Motors (-0.9%), M&M (+0.3%), Bajaj Auto (+0.4%), Eicher (-0.5%) and Hero MotoCorp (-0.3%)—saw some profit booking from intraday highs.
Japan’s GDP
- In the July-Sept quarter, Japan’s GDP not just grew faster than expected, but also faster than ever before at an annualised rate of 22.9%.
- To maintain growth, Japan announced a fresh stimulus of $708bn today. This could mean more liquidity into equities. The Nikkei 225 index is already at a 29-year high.
Gold bucks up
- So far in December, gold has gained nearly 5% ahead of the stimulus announcements from Japan and an expected one from the US.
- What’s the connection between stimulus and gold, you ask? Fresh influx of money (from stimulus) could put inflationary pressure, against which gold is used as a hedge by investors.
Closing bell
It was yet another day when Indian markets seemed to defy global cues. While Asian and European indices are in the red, Indian markets ended in the green. Further, although our markets ended the day with modest gains, the market breadth was negative as 30 out of the Nifty50 stocks closed in the red. In such a scenario, traders would prefer to tread with caution ahead of the inflation data release on Friday.
Good to know
What is upper circuit?
An upper circuit is the maximum price to which a stock can move upwards in a day. This limit is set by the stock exchange to control extraordinary exuberance in the stock price. Similarly, a lower circuit limit is set for the day to control extreme panic.
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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.