Morning update for 15 December 2020

Indices at 9:30 am

Nifty50 13,492 ▼ 66 (-0.4%)    

Sensex 45,984 ▼ 269 (-0.5%)  

Nifty Bank 30,542 ▼ 203 (-0.6%)

In the news

Consumer Inflation cools off

• The consumer price inflation (CPI) for November eased to 6.93% from 7.6% in October. The figure was also lower than the street’s expectation of ~7.1%. 
• The drop was on account easing prices of some food items. Inflation in food and beverages dropped to 8.76% from 10.16% in the previous month. Easing inflation favours the market as it reduces pressure on the central bank to hike rates to control inflation.

Mrs. Bectors raises funds from anchor investors

• Biscuit and bun maker Mrs. Bectors has raised ₹162 crore from anchor investors at ₹288 per share. 
• Anchor investors are institutional investors who are invited to subscribe to the shares before the IPO opens. Such investment increases overall investor confidence toward the IPO. 
• The ₹540 crore IPO opens today for subscription with a price band set at ₹286-288 per share. Retail investors can bid for a maximum of 13 lots or 650 shares worth ₹1,87,200. You can subscribe to the IPO with Upstox here.

Oaktree outbids for DHFL

• By offering ₹32,700 crore, global alternative assets investor Oaktree capital has outbid other bidders—Piramal Enterprises and Adani group—to purchase the debt-ridden home financier DHFL.
• DHFL, which owed about ₹84,000 crore to various financial institutions, was declared bankrupt by the RBI in November last year. Meanwhile, shares of DHFL have risen nearly 200% since the start of this quarter.

Sputnik V vaccine 91.4% effective

• The Russian Direct Investment Fund stated that its Sputnik V vaccine is 91.4% effective, as per phase 3 trial results. Meanwhile, the US began a vaccination drive yesterday. 
• Dr. Reddy’s Labs would conduct clinical trials in India for this vaccine and is expected to distribute the first 10 crore doses. Shares of Dr. Reddys' were buoyant with gains of 0.9%. 

Events this week

• Tuesday: Mrs. Bectors IPO
• Wednesday: Retail sales, crude oil inventories, Manufacturing & Services PMI (US)
• Thursday: Fed interest rate decision, initial jobless claims (US)

Sectoral indices

Global markets

Fact of the day

You get the red-eye effect in night-time photographs because the light from the flash passes through the pupils and reflects the blood at the back of your eyes. 

Source: Goodeye

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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.