Morning Update for 17 November 2021

Indices at previous closing

Nifty50: 17,999 ▼-110 (-0.6%)
Sensex: 60,322 ▼-396 (-0.6%)
Nifty Bank: 38,307 ▼-395 (-1.0%)

For more updates on F&O, click here.

Residential real estate shows signs of revival

According to an industry report, housing sales have increased 12% year-on-year during the January-September period of the current calendar year. The demand was driven mainly due to low interest rates, discounts offered by builders, adoption of work from home policy and reduction in stamp duty by various state governments.

However, the sales numbers are estimated to fall short of pre-pandemic levels of 3.5 lakh units annually and stood at 1.3 lakh units between January-September in 2021. Meanwhile, the Nifty Realty index closed 0.1% lower yesterday. However, among the sectoral indices, it has been top gainer in 2021 with 73% rise.

Ad revenue on recovery path

According to experts, television broadcasters’ advertising revenue may reach 97% of the pre-pandemic levels in this financial year. The revenue from this segment is crucial for broadcasters as it accounts for 65% of their total revenue. 

Experts state that festive spending by brands has exceeded expectations as the economy re-opens and the ad rates have largely come back to the pre-pandemic levels. And in FY23, the advertising revenue is expected to go above the pre-pandemic levels and grow around 12%-13%. Meanwhile, shares of Zee Entertainment and Sun TV were down 0.2% and 1.7%, respectively.

RBI raises valuation concerns

According to RBI’s monthly bulletin, monetary and credit conditions are conducive for a sustainable economic recovery. However, as per the bulletin the strong gains in the Indian equities have raised concerns over overstretched valuations. 

The central bank report also highlighted that promoters have increased stake in the listed companies reflecting their confidence in the business outlook and their comfort with the current valuations. Meanwhile the Nifty50 index showed weakness yesterday and closed 0.6% lower yesterday.

Sectoral indices (November 16)

Global markets (at 8:15 am)

Fact of the day

The US-based Colgate Palmolive sold its first toothpaste, Colgate’s Ribbon Dental Cream, in a tube in 1896. 

Source: Britannia

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Investment in securities markets is 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.