Morning update for 1 December 2020

Indices at 9:30 am

Nifty50 13.021 ▲+53pts (+0.41%)

Sensex 44,346 ▲+197pts (+0.45%)

Nifty Bank 29,654  ▲+45pts  (+0.15%)

In the news

We’re officially in recession but in recovery mode

• India’s GDP for July-September contracted by 7.5%. Although the figures are better than market estimates of around 8.2%, technically, we are in a recession. On the upside, the economy has recovered from the 23.9% contraction witnessed in Q1.
•  Infrastructure output contracted 2.5% in October and has dropped for eight months, straight. In contrast, the Nifty Infrastructure index gained over 9% in November 2020. Trading in LVB shares suspended today, merger with DBIL effective on 27 November.

Gold plummets with growing vaccine optimism

• In November, Gold prices witnessed the worst monthly drop (-5.7%) in the last four years.
• Vaccine-inspired optimism around economic recovery has diverted investors towards traditional instruments such as equities and away from the yellow metal, generally considered a safe haven. Sectoral indices.

S&P Global to acquire IHS Markit for $39 billion

• Rating industry major S&P Global plans to buy IHS Markit for about $39 billion. The deal could be the largest merger in the increasingly competitive financial information and analytics space.
• The deal is second in size only to the $56 billion that China’s largest oil and gas companies collectively bagged for their pipeline networks from a new national carrier.
• Some of India’s major rating agencies (based on market capitalization) include Crisil (+0.08%), ICRA (+2.2%) and CARE Ratings (+7.3%).

Events in this week

• Tuesday: Manufacturing PMI (Nov)
• Wednesday: Burger King IPO
• Thursday: Services PMI (Nov)
• Friday: RBI Interest rate decision

Sectoral indices

Global markets

Fact of the day

If stored properly, a jar of honey may remain edible for over 3,000 years.

Source: Medium

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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.