Morning update for 21 December 2020

Indices at 10:00 am

      Nifty50 13,756 ▼ 4 (-0.0%)  

       Sensex 46,793 ▲ 38 (+0.0%)  

Nifty Bank 30,446 ▼ 268 (-0.8%)

In the news

L&T arm lowest bidder for HPCL projects

• L&T’s wholly-owned subsidiary L&T Hydrocarbon Engineering has emerged as the lowest bidder for the HPCL Rajasthan Refinery projects, estimated to be worth ₹13,000 crore. 
• Buoyed by the steady news around orders wins, shares of L&T have seen increased investor interest since the start of Q3 during which the stock has risen 42% and is trading higher (+2.2%) today.

Wheels India bullish on exports

• The steel wheel manufacturer believes that there is optimism toward Indian auto component companies as global companies try to de-risk their exposure to China. 
• The company, part of the TVS group, expects its exports (20% of total revenues) to grow faster than its domestic sales. Meanwhile, its shares (~38%) have underperformed the Nifty Auto index (~94%) since the start of this fiscal. Today the stock is up 2.8%.

UK faces new Covid variant

• The UK has reported over 35k cases, the biggest one-day increase in new cases. Its government has imposed a strict lockdown in London and southeast England. 
• It has warned that the new strain of Covid was ‘out of control’. The news of the virus mutation comes as a jolt at a time when vaccination programmes have boosted overall sentiments in the equity markets.

US seals a $900bn stimulus package

• The much-awaited stimulus package will include benefits for the jobless and a new round of subsidies for hard-hit businesses, schools and healthcare providers. 
• The $900 billion package which was announced over the weekend, has not triggered any positive reaction in the Asian equity markets today. However, bullion has opened the week on a strong footing. Gold prices are up 0.8% and silver has surged +3.1%.

Events this week

• Monday: Antony Waste Handling Cell’s IPO
• Tuesday: GDP, Existing home sales (US)
• Wednesday: Initial jobless claims, new home sales, Crude oil inventories (US)

Antony Waste Handling Cell’s IPO opens for applications today. Read more about the issue here. You can subscribe to the IPO with Upstox here.

Sectoral indices

Fact of the day

Earth is home to 3 trillion trees. That’s 30 times the stars in the Milky Way galaxy!

Source: Sciencemag.org

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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.