Morning Update for 3 January 2022

Indices at previous closing

Nifty50: 17,354 ▲+150 (+0.8%)
Sensex: 58,253 ▲+459 (+0.8%)
Nifty Bank: 35,481 ▲+418 (+1.1%)

For more updates on F&O, click here.

Tractor sales dip in December 

Farm equipment makers M&M and Escorts reported a 21% and 43% YoY decline in their tractor sales in December 2021, respectively. The companies attributed the decline to the high base of last year. 

The industry expects the sales momentum to recover on the back of good progress of kharif crop procurement. Meanwhile, the rising inflation continues to be a concern. Shares of Escorts were down 0.2%, while those of M&M were up 0.9%.

RIL plans to raise capital  

The telecom-to-oil conglomerate has said that it will raise $5 billion by issuing bonds in one or more tranches. The funds will be used for refinancing the existing debt. It’s important to note here that Reliance Industries (RIL) is a net debt-free company. 

The chairman of RIL, Mukesh Ambani, spoke about succession for the first time. He said that the younger generation - indicating toward his three children - is ready to take over the leadership roles. Meanwhile, shares of RIL were up 0.4% on Friday.

IPO rush to continue 

The IPO party is expected to continue in the current quarter. According to the reports, 23 companies are expected to raise ₹44,000 crore combined. This fund raising is likely to be driven by tech-led companies. 

Experts believe that tech-driven companies want to expand globally and hence are looking to raise money through the IPO route. According to the reports, hotel aggregators Oyo and logistic company Delhivery are likely to tap the equity markets during Q4FY22.

Sectoral indices (December 31)

Global markets (at 8:00 am today)

Fact of the day

Established in 1993, UTI Bank was the first private bank in India. It was renamed as Axis Bank in 2007.

Source: GoodReturns

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