market recap

 

Nifty50: 13,981 ▼ -0.2 (-0.0%)

Sensex: 47,751 ▲ 5.1 (+0.0%)

---

 

The markets were lacklustre today and oscillated within a narrow band. Of the Nifty 50 stocks, 28 stocks declined for the day. 

Among the sectoral indices, Nifty Realty (+1.2%) and Nifty Media (+0.9%) were the top gainers, whereas Nifty PSU Bank (-0.4%) and Nifty FMCG (-0.4%) ended in the red. 

 

Top gainers	Today's change
HDFC	▲ 1.2%
Sun Pharma	▲ 1.1%
Divi's Labs	▲ 1.0%

 

Top losers	Today's change
Shree Cement	▼ 2.4%
TCS	▼ 1.5%
Ultratech Cement	▼ 1.4%

---

Here are the top stories for the day.

 

BHEL wins big-ticket orders for hydro projects

 

  State-owned, Bharat Heavy Electricals Ltd (BHEL) has bagged two large orders cumulatively worth ₹3,200 crore. One is for electro-mechanical works for a hydro-electric project in Andhra Pradesh and the other is for pump-sets for lift-irrigation projects in Telangana.

 
  BHEL is a market leader in pump-sets for hydroelectric power projects and commands a     45% market share. Its stock gained 1.2% today. 
 

 

Jubilant Foodworks invests in Barbeque Nation

 Shares of Jubilant Foodworks were upbeat today after the company announced that it will invest ₹92 crore to buy almost 11% in the casual-dining restaurant chain Barbeque Nation. 

The company. which also holds the master franchise for Domino’s Pizza, recently widened its spread and ventured into Chinese cuisine, biryanis and ready-to-cook sauces. Its stock gained 4.2% today and has risen over 65% in 2020.
 

Greenpanel soars on capex plans

 

 The wood-panel maker plans to invest ₹55 crore at its medium-density fibreboard (MDF) plant located in Uttarakhand and Andhra Pradesh. The capex will be funded through a mix of internal accruals and debt. 

 MDF contributes 76% of the company’s sales and in Q2, MDF sales grew 33% YoY. Greenpanel’s shares are trading at a lifetime high and have gained over 400% from their 52-week lows. The stock was up 2.9% today.
 

 

Tejas Networks bags large order

 

The Bengaluru-based networking products maker was locked at the 5% upper circuit today after the company announced that it has received an order worth $13 million (nearly ₹95 crore) to supply broadband products. 

   This order from a South-East Asian telecom company is to be executed within the next months and constitutes roughly 25% of the company’s FY20 revenues.

  

Closing bell

 

The last day of 2020 seemed like the quietest day of the year for the markets. Even the December derivative expiry did not result in any major movement. However, on an annual basis, the Nifty50  delivered nearly 15% returns in 2020, beating 12% in 2019 and 3.1% in 2018. The flood of liquidity and extremely low interest rates have helped equity markets across the world. However, the President of Bundesbank (German central bank) said that interest rates cannot remain low forever and the European Central Bank will raise interest rates, if required. Let’s see what 2021 holds in store!

---

 

Good to know

 

What is a Holding company?

A holding company is a company that owns the shares of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies to form a corporate group.

---

Wish you all a happy new year from Team Upstox! Have a wonderful 2021!

 

Haven't tried out Upstox yet? Click here to open your 

account now!

---

Disclosures and Disclaimer 

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.

Upstox Team 

Authorised Partner

morning update

 

Indices at 10:00 am

Nifty50 13,990 ▲ 8 (0.0%)

Sensex 47,783 ▲ 37 (+0.0%)

Nifty Bank 31,351 ▲ 48 (+0.1%)

---

In the news

 

Union Bank to raise ₹6,800 crore

       The state-owned bank has received a nod from shareholders to raise up to ₹6,800 crore in equity capital to fund business growth. 

The bank plans to raise the capital in the current fiscal. It is expected that PSU banks would raise ₹25,000 crore over the next three months to support credit growth. Shares of Union Bank were trading 0.4% higher today.

Government approves export of Akash missile

      To achieve the defense export target of $5 billion, the government has approved the export of the made-in-India Akash missile. 

Suppliers of propellants to such missiles such as Premier Explosives saw an uptick of 7.4% in its share price yesterday. Meanwhile, Solar Industries, the explosives maker, was trading flat.

 

Duty on clear float glass likely

      To create a level playing field, India could impose a countervailing duty on the imports of clear float glass from Malaysia. This glass is used in the construction, refrigeration, mirror and solar energy industries, among others.

Shares of glassmakers such as Asahi India and Saint Gobain saw strong buying action yesterday and rose 3-5% coupled with high volumes.

 

Nesco to revamp exhibition centre

 The owner and operator of the Bombay Exhibition Centre, Nesco Ltd. plans to modernise and   expand its exhibition facility in Mumbai with an investment of ₹325 crore, reports suggest. 

 The company which hosts several national and international exhibitions has a nearly 20%   market share. The stock was up 2% this morning.

 

Events in this week

         Thursday: Initial jobless claims (US)

      Friday: Auto sales volumes 

---

Sectoral indices

Top gainers	Top losers
Nifty Pharma ▲ 1.1%	Nifty IT ▼ 0.3%
Nifty Realty ▲ 0.8%	Nifty FMCG ▼ 0.2%

 

Global markets	Today's movement
Nikkei 225 (Japan)	▼ 0.4
Hang Seng (Hong Kong)	▲ 0.3%
SSE Composite (China)	▲ 0.8%
Dow Jones (US) 24/12	▲ 0.2%

 

Fact of the day

The Asia Tiger Funds' stock symbol is GRR.

Source: Bloomberg

 

If you haven't already, open your Upstox account to get IPO-

ready today! Click here to sign up.

 

Disclosures and Disclaimer 

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.

 Upstox Team

 Authorised Partner

Wipro Buy-Back Offer

 

The Wipro buy-back is now live!

 

The Wipro buy-back offer of Rs. 400 per share goes live on 29th December 2020 and you can apply for it on or before 11th January 2021.

Read on to know what this means and how you can apply for it quickly and easily -

 

What is a buy-back and why should you opt for it?

It’s a corporate action where a company offers to buy-back its shares from the existing shareholders usually at a higher price than the market price. To learn more about a buy-back, click here.

 

What does this offer mean for Wipro shareholders?

Existing Wipro shareholders holding Wipro shares as of 11th December 2020 (which is the Record date) can offer to sell their shares back to Wipro for Rs. 400 per share by applying to their buy-back offer on or before 11th January 2021.

 

How to apply for a buy-back?

Just follow these steps:

1. Login into keystone.upstox.com with your client code and back-office password

2. Click on “Account” on the top of the header line

3. Click on “Buy Back/ Takeover” from the drop-down

4. Click on “Apply” and enter the quantity

5. Submit the request

 

Note : Non-POA holders will need to enter a valid pin to authenticate the buy-back via EDIS to proceed.

 

When can you apply?

Apply for this buy-back on or before 11th January 2021.

 

What to keep in mind while applying?

 

1. You can only apply for this buy-back if you hold shares of Wipro in your Demat account as of 11th December 2020.

2. You shouldn’t sell these shares on or before 11th January 2021 if you’re interested to take part in the buy-back offer.

3. After applying and offering your shares up for a buy-back, you cannot sell them in the market and modify or cancel your original bid.

4. You can only sell these shares in the market If the company cancels the buy-back and you receive your shares back from the company.

5. You will receive the buy-back amount for the shares from Wipro / Registrar & Transfer Agent (RTA) directly into your bank account (this will be updated in the records of the depository as well).

6. A total of 23,75,00,000 shares will be accepted by Wipro for the buyback and the remaining shares not accepted by Wipro will be returned back to shareholders in their Demat account. The percentage of shares accepted will be decided based on the number of retail investors who have applied for the buyback. 

That’s all about the Wipro buy-back, stay tuned for more buy-back updates from Upstox!

Haven't tried out Upstox yet? Click here to open your account now! 

Upstox Team 

Authorised Partner

market recap

 

Nifty50: 13,981 ▲ 49 (+0.3%)

Sensex: 47,746 ▲ 133 (+0.2%)

---

After the initial weakness, the markets recovered and scaled new highs. The recovery was broad-based as 34 of the Nifty50 stocks closed in the green. 

 

Among the sectoral indices, Nifty Auto (+1.3%) and Nifty Metal (+1.2%) indices were the top gainers whereas Nifty PSU Bank  (-0.2%) and Nifty Pharma (-0.1%) were down marginally.

 

Top gainers	Today's change
Ultratech Cement	▲ 4.4%
Grasim	▲ 3.0%
Shree Cement	▲ 2.9%

 

CLICK HERE TO OPEN YOUR FREE DEMAT ACCOUNT 

IN UPSTOX

 

Top losers	Today's change
IndusInd Bank	▼ 1.4%
Sun Pharma	▼ 1.1%
Axis Bank	▼ 1.0%

---

Here are the top stories for the day.

 

 Paint stocks to see volume recovery

       As the economic recovery gathers momentum, paint companies in the organised sector are expected to see a volume recovery and market share gains from unorganised players. Shares of major paint companies Kansai Nerolac (+9.0%), Akzo Nobel (+4.4%), Asian Paints (+1.4%), Berger Paints (+1.2%) and Shalimar Paints (+0.5%)—were up today. 

      Headwinds could come from the rise in price of inputs such as. crude oil derivatives and titanium dioxide, which account for over 80% of total input costs. Margins could be under pressure if companies are not able to fully pass on the rise in input costs to the customers.

 

 UPL pares debt

         Shares of the agrochemical major were up 2.4% after the company paid off debt to the tune of $410 million (nearly ₹3,000 crore) in advance, using its cash reserves. 

         As of Q2, the company had a gross debt of over ₹31,800 crore. Favourable agri-economy prospects and agricultural commodity prices are expected to aid the company in further paring debt.

 

 Sail bucks trend

         The country’s largest steelmaker has seen strong investor interest over the last two months, gaining over 100% in that period. The street expects an improvement in the demand for steel in 2021 due to increased government spending in the infrastructure space along with recovery in the auto industry. 

         In the long term, the company plans to double its installed capacity to 50 MTPA (million tonne per annum) by 2030. Further, the company is expected to reduce its debt by nearly ₹10,000 crore in the second half of this fiscal. The stock gained 7.5% today. 

 

 

 Kalpataru Power and JMC Projects rise on new orders

        Kalpataru Power Transmission has bagged orders worth ₹900 crore in its T&D (transmission and distribution) business from the overseas market and domestic EPC (engineering, procurement and construction) orders for laying pipelines. Its shares rose 3.2% today. 

       Its subsidiary JMC projects (where it holds 67.7%) also gained 3.1% after winning orders for building projects in southern India worth ₹698 crore.

 

Closing bell

Markets have risen smartly over the last six trading sessions. However, today’s movement was peculiar because the day’s open and close are nearly the same, suggesting indecision. Global cues are positive as Asian and European indices are in the green. Beginning Friday, auto companies will release December sales volumes. The street could consider their performance as a lead indicator for demand after the festive season and whether the pandemic-led pent-up demand has been exhausted. 

---

Good to know

 

What is earnings per share?

It is a company's profit divided by its number of outstanding shares. If a company earning ₹2 crore in one year had 20 lakh shares outstanding, its EPS would be ₹10 per share.

---

Haven't tried out Upstox yet? Click here to open your 

account now!

---

Disclosures and Disclaimer

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.

 

Upstox Team

Authorised Partner