MORNING MARKET UPDATE 17/12/2020

 

Indices at 9:30 am 

Nifty50 13,692 ▲ 9 (+0.0%) 

   
Sensex 46,690 ▲ 23 (+0.0%)  

Nifty Bank 30,671 ▼ 27. (-0.0%) 

---

In the news

 

Headwinds ahead for auto ancillaries

 
·  The Automotive Component Manufacturers Association (ACMA) believes that auto ancillary companies could take 3-4 years to return to growth. 

·  The industry is set for a double-digit contraction this year after witnessing a 34% fall in the first half, with Q1 revenues being near zero. While signs of recovery are visible, the industry faces headwinds from high raw material costs and supply chain issues. 
 

 

Textile and apparel stocks in demand

 
· High investor interest was seen in the stocks of home textile (makers of products like bedsheets, curtains, etc) and apparel stocks, recently. Higher in-home consumption due to the increased stay-at-home period is helping demand recovery.

· Further, export order flows have improved from Q2 due to the reopening of departmental stores and pent-up demand. Yesterday, shares of Page Industries (+5.1%), TCNS clothing (+10.3%), Dollar Industries (+7.3%), Himatsingka Seide (+10.0%), Bombay Dyeing (+7.4%), and Gokaldas Exports (+15.4%) were all up.
 

 

   Hero two-wheelers to get costlier

 
·  After Maruti and M&M, two-wheeler major Hero MotoCorp has announced price hikes from 1 January to partially offset the rising commodity prices. The company aims to increase prices by up to ₹1,500 across its models. 

· Other players are likely to follow suit soon. The concern is that if the commodity prices rise unabated, automakers may further hike prices which eventually could impact demand.

 

 

US Fed raises GDP forecast

 

    It is not just in India that we are seeing upward revisions in GDP forecasts. The Fed expects the US GDP to contract by just 2.4% in 2020, versus the 3.7% fall predicted earlier.    

   For 2021, it expects the GDP to grow at 4.2%, probably the highest in the last 20 years. Further, the Fed has kept the interest rates unchanged at 0.25%.

 

 

Events this week

      Thursday: Fed interest rate decision, initial jobless claims (US)

---

Sectoral indices

Top gainers	Top losers
Nifty Pharma ▲ 1.1%	Nifty Realty ▼ -0.7%
Nifty Media ▲ 0.2%	Nifty PSU Bank ▼ -0.4%

 

CLICK HERE TO OPEN YOUR DEMAT ACCOUNT

Global markets	Today's movement
Nikkei 225 (Japan)	▲ 0.1%
Hang Seng (Hong Kong)	▲ 0.0%
SSE Composite (China)	▲ 0.6%
Dow Jones (US)	Nifty Media ▼ -0.1%

 

Fact of the day

 

Blue whales can eat half a million calories in one mouthful. 

Source: National Geographic

 

 

The Mrs Bectors Food IPO is live on Upstox! You can subscribe to the IPO with us here.
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