Market Update 15 Dec. 2020 – Mrs. Bectors IPO oversubscribed on first day

Gold rises on stimulus hope

  • Expectations are rife that a new round of US stimulus could be announced this week. This has made traders bullish on the yellow metal as more liquidity in the economy raises prospects of inflation, against which gold acts as a hedge.
  • Gold prices were up by approximately 1% today. The US stimulus could further weaken the US dollar index. It is generally observed that gold prices move inversely to the US dollar index.

Dilip Buildcon wins highway project

  • Infrastructure company Dilip Buildcon gained 3.2% as it bagged a four-lane highway project in Gujarat from NHAI on a design-, build-, operate- and transfer basis.
  • The 50-km highway project costs approximately ₹882 crore and is required to be completed in 24 months and operated for a period of 15 years. ).

Borosil Renewables surges on import duty levy

  • Solar-glass maker, Borosil Renewables is shining for various reasons. An import tax of nearly 10% is likely to be levied for 5 years on textured, tempered, coated or uncoated glass imported from Malaysia.
  • The company is the sole manufacturer in India for such types of glass. The company is in the process of raising capital from institutions via a QIP and from its promoters via preferential issue. Its shares gained 6.1% today, after a 20% rise registered yesterday.

Consumer durables power up

  • Strong demand from tier-II and tier-III cities coupled with market share gains from unorganised players has led to a pick-up in demand for consumer goods. Further, a healthy festive season has boosted prospects for the December quarter performance.
  • Amid a volatile market today, shares of consumer durables companies—Crompton Greaves (+4.4%), Havells (+4.8%), VGuard (+3.4%), Whirlpool (+3.3%) and Voltas (+2.6%)—emerged strong. Now that commodity prices are rising, investors would like to see demand growth outstripping the raw material cost pressures.

Mrs. Bectors IPO oversubscribed on first day

  • Burger King IPO’s massive oversubscription and 170% return on its issue price seems to be causing a major FOMO among investors. It is not hard to have FOMO for the upcoming IPOs.
  • Mrs. Bectors Foods IPO that opened today for the application was oversubscribed by noon. Its price band is ₹ 286-288 per share and the issue closes on 17 December. You can subscribe to the IPO through Upstox here.
  • Meanwhile, consumer food companies such as Britannia (-0.4%), Nestle (-2%), DFM Foods (-0.2%) and Prataap Snacks (-0.7%) were trading in the red today.