Morning update for 26 November 2020

Blog | Updates

Indices at 10:00 am

 Nifty50 12,812 (-0.36%)  

 Sensex 43,677 (-0.34%)

 Nifty Midcap 100 18,947 (-0.45%)    

 Nifty Smallcap 100 6,295 (-0.44%)

In the news

US jobless claims and new home sales growth beat expectations

  • In the US, applications for unemployment benefits rose more than expected, indicating that the economic recovery is still an uphill task. 
  • Meanwhile, sales of new homes also beat expectations. The increase in home sales could be attributed to attractive mortgage rates and requirement of more space as people work from home. 
  • Amid this contradiction, the Dow took a pause and dipped 0.5%. Today, the US markets will be closed for Thanksgiving Day. 

Trading in LVB shares suspended today, merger with DBIL effective on 27 November

  • As per RBI, branches of Lakshmi Vilas Bank (LVB) will operate as DBS Bank India Ltd (DBIL) and the amalgamation will come into force from 27 November 2020.
  • Meanwhile, trading in equity shares of LVB shall be suspended from today.

Siemens surges amid improved outlook and strong order book

  • Infrastructure and energy solutions provider Siemens reported a 4.7% year-on-year drop in net profit to 333 crore in the September quarter. The company mentioned that the profit was impacted due to expenses of 285 crore incurred during the lockdown.
  • The company has an order backlog of 3,500 crore—over one year’s revenues. The management is seeing an uptick in business. It believes that government spending in infrastructure will be crucial at this juncture and will have a cascading impact for revival in demand. 
  • Shares of Siemens are up 7.6% today, in an otherwise subdued market. 

Sectoral indices

  • Most sectoral indices are trading in the red today with the Nifty Bank index (-0.4%) and Nifty Auto index (-0.4%) among the top losers. IndusInd Bank (-1.9%), ICICI Bank (-0.6%), Maruti (-1.5%) and Eicher Motors (-2.1%) are seeing selling pressure. Meanwhile, Nifty Pharma index (+0.1%) is marginally positive. 

Global markets

  • Key Asian markets are a mixed bag today as Japan’s Nikkei 225 index (+0.4%) and Hong Kong’s Hang Seng Index (+0.01%) are up, whereas China’s SSE Composite Index is down (-0.1%) today. 

Fact of the day

There’s actually a word for ‘the day after tomorrow’ – Overmorrow.

Source: Insider

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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.