Morning Update for 26 February 2021

Previous close (25 January 2021)

Nifty50: 15,097 ▲ 115 (+0.7%)

Sensex: 51,039 ▲ 257 (+0.5%)

Nifty Bank: 36,549 ▲ 96 (+0.2%)

In the news

Kalrock-Jalan consortium to revive Jet 

• The consortium will invest ₹1,375 crore over the next two years to revive Jet Airways, reports suggest. The amount will be used for start-up expenses and paying creditor dues. Further, the group says that it will pay ₹1,183 crore to lenders over the next five years.
• Operations are likely to commence with 5-7 new aircraft. The Jet Airways stock gained 4.9% yesterday and has risen about 68% in February.

Bank of Baroda issues stake sale

• The public sector bank aims to sell stake worth ₹4,500 crore to institutional investors at ₹85.9 per share, a 4.5% discount to Thursday’s closing price. 
• The proceeds from the fundraise will be used to meet Basel III norms and also grow business. 

Aptech evaluates institutional business exit

• The training services company has announced that it will evaluate a potential exit from its institutional business and would focus on its retail business. 
• Its institutional business contributes about 30% of total revenues (as on FY20); however, it is loss-making. Shares of Aptech ended flat yesterday, but have gained 27% so far this month. 

Dow slides as bond yields rise

• Equity markets typically have an inverse relationship with bond yields. This is because if bond yields rise, a yield-seeking investor could divert funds to bonds since they provide equal or better returns and have virtually no risk. 
• The 10-year US Treasury bond yields rose to 1.52% yesterday, a spike of 14bps (or 10%) in a day. The Dow Jones slid 1.7% and the Nasdaq composite suffered a bigger drop of 3.5% as tech-majors such as Apple, Google, Amazon and Facebook each dropped over 3%.

Events of the week

• Friday: GDP (India)

Sectoral indices (Previous closing)

Global markets (at 8:30 am today)

Fact of the day

MRF, the leading tyre manufacturer, has the highest share price in the Indian stock market. As of the last closing, it traded at ₹87,622 per share.
Source: NSE

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