Morning update for 14 January 2021

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Indices at 10:00 am

         Nifty50 14,513 ▼ 51 (-0.3%) 

          Sensex 49,338 ▼ 154 (-0.3%)

Nifty Bank 32,598 ▲ 23 (0.0%)


In the news

Government to sell stake in SAIL via OFS

  • The government plans to sell 5% of the total equity (over 20 crore shares) in the country’s largest steel producer via an offer for sale (OFS). There is a provision to divest an additional 5% as well. The government currently has a 75% stake in the company.
  • The floor price for the OFS has been set at ₹64 per share, which is a 13.6% discount to Wednesday's closing price. This has triggered a sharp drop in SAIL’s shares, which are trading 8.7% lower today.

 

Hindustan Aeronautics bags Tejas order

  • The government has approved the purchase of 83 Tejas light combat aircraft from Hindustan Aeronautics (HAL). The size of the order is pegged at ₹48,000 crore.
  • This order is the biggest contract awarded to India’s homegrown military aviation industry and will give fillip to the Atmanirbhar Bharat initiative. Shares of HAL rose 8.0% today, supported by heavy volumes.

 

Indian Bank raises ₹2,000 crore

  • State-owned Indian Bank has reported that it has raised ₹2,000 crore through private placement of bonds. Its shares were up by 0.5% today. 
  • Major PSU Banks have seen a surge in investor interest this week. The Nifty PSU Bank index is upbeat for the third day in a row and is up 0.3% today.

 

IT stocks see profit-booking

  • Shares of IT majors Infosys (-3.5%) and Wipro (-4.1%) witnessed profit-booking after reporting their Q3 results, which were better than street estimates. 
  • Both the stocks had seen run-up to the results and had gained 10% and 19%, respectively, so far in January. These gains came after a nearly 24% rise in Q3. 

 

Events in this week

  • Thursday: WPI Inflation (India), Initial jobless claims (US)

Sectoral indices

Top gainers Top losers
Nifty FMCG
▲ 0.7%
Nifty IT
▼ 2.1%
Nifty PSU Bank
▲ 0.4%
Nifty Metal
▼ 0.8%

 

Global markets Today's movement
Nikkei 225 (Japan) ▲ 1.7%
Hang Seng (Hong Kong) ▲ 0.4%
SSE Composite (China) ▼ 0.2%
Dow Jones (US) ▼ 0.0%


Fact of the day

We shake hands to show we’re unarmed.
Source: Men’s Health

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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.

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