Morning Update for 26 February 2021

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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)

Top gainers Top losers
Nifty Metal
▲ 3.9%
Nifty FMCG
▼ 0.2%
Nifty Realty
▲ 1.6%
Nifty Fin Serv
▼ 0.1%

Global markets (at 8:30 am today)

Indices Today's movement
Nikkei 225 (Japan) ▼ 2.3%
Hang Seng (Hong Kong) ▼ 2.2%
SSE Composite (China) ▼ 1.4%
Dow Jones (US)
(23 Feb)
▼ 1.7%


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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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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