MORNING MARKET UPDATE 16/12/2020

 

Indices at 9:30 am

Nifty50 13,642 ▲ 75 (+0.5%)    

Sensex 46,550 ▲ 286 (+0.6%)  

Nifty Bank 30,823 ▲ 132 (+0.4%)

 

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In the news

 

M&M to hike prices from January

 

      From January 1, M&M will hike the prices of all its passenger and commercial vehicles. Recently, Maruti too had announced plans to increase prices from January, while other automakers are likely to follow suit soon. 

     Sharp rise in prices of commodities—steel, aluminium, copper and rubber—which are key materials in auto components have necessitated the price-hike. After rallying nearly 21% in November, shares of M&M are up ~2% in December. 

 

 

S&P uprates India’s GDP forecast

 

·         S&P Global Ratings now projects India’s FY21 GDP to contract by 7.7% compared to 9% estimated earlier. 

·    The rating agency believes that rising demand and falling infection rates have triggered an improvement in its forecasts. It expects a solid 10% rebound in GDP numbers for FY22.

 

Indian Railways on a roll

 

       From the development of railway stations to operating private trains, there are several changes happening at Indian Railways. 

 Further, around 40% of the dedicated freight corridor route is expected to be completed in 2020-21. This will connect several cities to ports in Gujarat. Meanwhile, shares of wagon manufacturers Texmaco (+26.5%) and Titagarh Wagons (+16.2%) are up in December. 

 

Stimulus hope pushes up US markets 

 

      The Dow rose while the tech-heavy Nasdaq closed at record highs buoyed by expectation of a stimulus from the US government. 

     Currently, the US is registering as high as ~2 lakhs cases every day and employment data is also grim. It is widely expected that the US Fed would continue to keep interest rates low amid this scenario. 

 

 

Events this week

     Wednesday: Retail sales, crude oil inventories, Manufacturing & Services PMI (US)

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

 

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Sectoral indices

Top gainers	Top losers
Nifty Metal ▲ 1.3%	Nifty PSU Bank ▼ -0.4%
Nifty Auto ▲ 1.3%	Nifty Media ▼ -0.1%

Global markets

Nikkei 225 (Japan)	▲ 0.1%
Hang Seng (Hong Kong)	▲ 0.8%
SSE Composite (China)	▲ 0.1%
Dow Jones (US)	▲ 1.1%

 

 

Fact of the day

 
You can tell identical twins babies apart from their navel since navel is a scar and thus they're different.
Source: Reader's Digest

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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.

Upstox Team

Authorised Pratner