Morning update for 16 February 2021

Previous closing (15 February 2021)

Nifty50: 15,314 ▲ 151 (+1.0%)

Sensex: 52,154 ▲ 609 (+1.1%)

Nifty Bank: 37,306 ▲ 1,197 (+3.3%)

In the news

PSBs shortlisted for privatisation

• As per reports, four PSU banks have been shortlisted for disinvestment. These include Bank of Maharashtra, Central Bank of India, Bank of India and the Indian Overseas Bank. Two of these will be privatised in FY22. 
• The stocks of the shortlisted banks traded nearly flat on Monday. Since the news comes after market hours, it remains to be seen how the shares along with the PSU Bank Index will react.

SIS announces buyback 

• The New Delhi-based facilities management company has announced a buyback worth ₹100 crore at ₹550 per share. The buyback is pegged at a 30% premium over Monday’s closing. 
• The buyback follows its Q3 results wherein SIS saw its revenue from operations go up 8.2% YoY to ₹2,357 crore and PAT rise 26.5% to ₹99 crore.

RailTel IPO opens for subscription

• RailTel is an information and communications technology company set up to modernise telecom systems for the Indian Railways. The ₹819 crore IPO is an offer for sale, as the government will divest its stake in the company.
• The price band for the issue is set at ₹93-94 per equity share, with a lot size of 155 shares. The issue closes on 18 February 2021. To know more about the IPO, read our blog here. You can apply to the IPO with Upstox here.

Crude oil continues to rise

• The prevailing demand and supply dynamics for crude oil support the price rise. On the one hand, easing restrictions globally due to rollout of Covid vaccines is helping to improve demand, while on the other hand, the supply remains constrained due to production cuts maintained by the OPEC+ group. 
• Crude oil prices rose over 1% yesterday and have risen over 15% this month. As per reports, every $10/barrel increase in crude prices adds $12.5 billion to India's current account deficit, which is roughly 0.43% of India’s GDP. 

Events of the week

• Wednesday: Retail sales (US)
• Thursday: Crude oil inventories, Initial jobless claims (US)

Sectoral indices (Previous closing)

Global markets (at 8:30 am today)

Fact of the day

The first product that Sony came out with was an electric rice cooker.
Source: Britannica

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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.