Morning Update for 23 November 2021

Indices at previous closing

Nifty50: 17,416 ▼-348 (-1.9%)
Sensex: 58,465 ▼-1170 (-1.9%)
Nifty Bank: 37,128 ▼-847 (-2.2%)

For more updates on F&O, click here.

Reliance Jio’s user base shrinks

Reliance Jio lost more than 1.9 crore subscribers in September, according to the regulatory body TRAI. This reportedly signals that the company is shedding its low-paying customers. Consequently, Reliance Jio’s average revenue per user (ARPU) increased from ₹138 in June quarter to ₹144 in the September quarter. 

Meanwhile, Jio’s rivals Bharti Airtel added 2.7 lakh customers in September. Also, Vodafone Idea’s customer base continues to erode with it losing around 10 lakh users. Shares of Reliance closed 4.4% lower yesterday, while those of Bharti Airtel and Vodafone Idea closed 3.8% and 7% higher, respectively.

Vedanta’s spin-off won’t hurt credit quality

According to the rating agency Moody’s, the metal major’s decision to demerge its business into three separate listed entities won’t affect Vedanta Resources’ credit quality. It’s because the parent company’s economic interest in all businesses would remain unchanged, said Moody’s report. 

Last week, Vedanta said that it had formed a sub-committee to evaluate the possibility of spinoff of its aluminum, iron and steel, and oil and gas businesses. After this announcement the shares of the company had tanked last week. However, they were up 7.3% yesterday.

MTNL rises on asset sale plan

The state-owned telecom player’s shares rose 9.3% intraday yesterday after the government announced that it plans to sell real estate assets of MTNL. According to DIPAM, MTNL and BSNL’s assets will be sold at a reserve price of around ₹1,100 crore out of which MTNL’s assets account for about ₹270 crore. 

This asset sale is a part of the government’s plan to revive the fortunes of the loss-making telecom player. Meanwhile, shares of the company pared some of their initial gains and ended 8.2% higher.

Sectoral indices (November 22)

Global markets (at 8:15 am today)

Fact of the day

Real Madrid is the most valuable football brand globally with a brand value of $1.5 billion (that's over ₹11,000 crore). 

Source: Statista

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