Stock market recap 12 january 2021
Nifty50: 14,563 ▲ 78 (+0.5%)
Sensex: 49,517 ▲
247 (+0.5%)
After a shaky start, the
markets resumed their upward march and remained firm till the closing bell
rang.
Among the sectoral
indices, Nifty PSU Bank (+5.9%) and Nifty Realty (+2.7%) were the top gainers,
whereas Nifty Pharma (-1.2%) and Nifty FMCG (-0.5%) were the top losers.
|
Top gainers |
Today's change |
|
Tata Motors |
▲ 7.5% |
|
GAIL |
▲ 4.6% |
|
Bharti Airtel |
▲ 3.9% |
|
Top losers |
Today's change |
|
Asian Paints |
▼ 3.2% |
|
Titan |
▼ 2.1% |
|
Nestle India |
▼ 2.1% |
MARKET RECAP
Sunteck gains as new bookings rise
Mumbai-based Sunteck
Realty saw a sharp recovery in new bookings to ₹349 crore, up 75% QoQ and 7%
YoY. The company believes that the reduction in stamp duty and low interest
rates are expediting home-purchase decisions.
As construction
activity returns to pre-COVID levels, the company is accelerating its work on
projects to make up for lost time. The stock gained 1.7% today.
PSU banks see high investor interest
As per RBI’s Financial
Stability Report, PSU banks are seeing a steady uptick in credit growth. Loans
grew 4.6% YoY in
September 2020, as compared to 3% in March 2020.
Further, the rebound
in the overall economic scenario not only augurs well for new loans but
also increases the likelihood of an improvement in asset quality. Shares of PSU
banks such as SBI (+3.7%), PNB (+4.3%), Bank of Baroda (+10.6%), Canara Bank
(+6.8%) and Union Bank (+5.7%) saw strong investor interest today.
Fundraising plans boost
Indiamart
Indiamart, the online
B2B marketplace, aims to raise around ₹1,000 crore possibly
via the qualified institutional placement (QIP) route. The exact quantum of
funds raised will be revealed on 18 January, during the company’s board
meeting.
It is expected that
the funds raised will be used for potential acquisitions. The stock rose 2.7%
today. The stock has been steadily rising of late, gaining nearly 26% in
December and 28% in January, so far.
Tata Chemicals to buy Archean’s salt unit
According to reports,
Tata Chemicals is in talks to acquire Archean Group’s industrial salt division
valued at ₹450 crore. The
Chennai-based group is a manufacturer of industrial salt, industrial chemicals
and fertilisers.
Media reports suggest
that the deal could materialise this month. Shares of Tata Chemicals rose 4.9%
today. It has seen a strong run-up in Q3, gaining nearly 60%.
Interestingly, at 5.3%
the CPI will be comfortably below RBI’s upper tolerance level of 6%. Meanwhile,
market expectations for the IIP reading (which will also be announced today)
are not that encouraging. It is expected to drop to 1.1% versus 3.6% in
November.
Qualified institutional placement (QIP) is a tool to raise capital wherein a listed company can issue equity shares to institutional buyers such as mutual funds. In a QIP, the issuing company does not have to undergo elaborate procedures (such as in an IPO) to raise this capital.
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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.
posted by JAVED CHILLIMUTTUR @ January 12, 2021
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