Morning update for 14 January 2021

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

Fact of the day

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

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