Morning Update for 23 February 2021

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Previous closing (22 February 2021)

Nifty50: 14,675 306 (-2.0%)

Sensex: 49,744 ▼ 1,145 (-2.2%)

Nifty Bank: 35,257 ▼ 584 (-1.6%)


In the news

Reliance hives off oil-to-chemicals business

  • Reliance Industries (RIL) has announced that it will carve out its oil-to-chemicals (O2C) business into a wholly-owned subsidiary, but will retain 100% management control of the new entity. The new entity will consist of the refining, marketing and petrochemicals assets.
  • The reorganisation will not result in any change in the shareholding. The strategic restructuring will help RIL in the focused pursuit of opportunities across the O2C value chain and attract global investors. 
  • The company expects to receive regulatory approvals by Q2 FY22. The stock was down nearly 4% yesterday but has gained nearly 9% so far this month.

 

Heranba IPO opens for subscription

  • Gujarat-based Heranba Industries is a manufacturer, exporter and marketer of crop-protection chemicals. The company aims to raise ₹625 crore through its public issue, which will include a fresh issue of ₹60 crore.
  • The price band for the IPO is set at ₹626-627 per equity share, while one lot contains 23 shares. The issue closes on 25 February 2021. To know more about the IPO, read our blog here. You can apply for the IPO with Upstox here.

 

Tighter supplies drive up oil prices

  • International crude oil prices rose over 4% on Monday as a deep freeze in certain US states halted crude oil production. Return to normalcy is likely to take at least two weeks..  
  • Further, in the OPEC+ meeting scheduled on 4 March, the top producers are expected to keep control on the output, or at best go for modest easing on the production curbs. 

 

Rising US Treasury yields hit US equities

  • The tech-heavy Nasdaq closed lower by 2.4% yesterday. Prospects of rising inflation, due to stimulus, spurred concerns regarding the valuation of top companies like Google, Microsoft, Facebook and Apple, all of which continued to decline from last week.
  • Further, US Treasury yields have risen to 1.37%, up 26 basis points this month, set for the largest monthly spike in three years. Equity markets have an inverse correlation with bond yields.

 

Events of the week

  • Wednesday: New home sales, Crude oil inventories (US)
  • Thursday: Initial jobless claims, Pending home sales (US)
  • Friday: GDP (India)

Sectoral indices (Previous closing)

Top gainers Top losers
Nifty Metal
▲ 1.6%
Nifty Media
▼ 3.4%
NA Nifty IT
▼2.8%

Global markets (at 8:30 am today)

Indices Today's movement
Nikkei 225 (Japan) ▲ 0.4%
Hang Seng (Hong Kong) ▲ 1.0%
SSE Composite (China) ▲ 0.2%
Dow Jones (US)
(22 Feb)
▲ 0.0%


Fact of the day

‘Google’ is a wordplay on ‘googol’, a mathematical term represented by the numeral one followed by 100 zeros.
Source: Thoughtco

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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.

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