Market update – 8 Dec. 2020 – 2% rise in shares of Reliance Industries

Jet set

  • Fliers might soon have one more carrier to choose from as Jet Airways is likely to be back in the skies in the summer of 2021. This time, it will also focus on cargo services, reportedly an under-served market.
  • Jet’s stock stood locked at its 5% upper circuit today. Jet’s resurrection also means more competition for Indigo (-0.0%) and Spicejet (+1.5%).

Day’s saviour

  • The 2% rise in shares of Reliance Industries propped up benchmark indices in an otherwise wobbly market. At a recent event, Chairman Mukesh Ambani announced that RIL will roll out 5G in the second half of 2021.
  • Ambani added that with policy interventions, millions of 2G users could benefit from digital transformation through affordable smartphones.

Auto inventories

  • Dealer-level inventories dropped in November, a healthy sign for the auto industry.
  • Inventory for passenger vehicles stood at 25-30 days (versus 35-40 days in October), and for two-wheelers at 45-50 days (versus 50-55 days in October).
  • Meanwhile, major auto stocks—Maruti (+0.1%), Tata Motors (-0.9%), M&M (+0.3%), Bajaj Auto (+0.4%), Eicher (-0.5%) and Hero MotoCorp (-0.3%)—saw some profit booking from intraday highs.