Market Updates dated 24.08.2020

Market Update: Private Banks lead the green rally

Trading week started on a positive note, with benchmark indices Nifty and Sensex rose by 94 points and 364 points respectively. In sectors, Nifty Fin Services and Pvt bank were the top performers, while Nifty Realty, IT and Pharma ended up in red.

Pvt banks viz. Kotak Mahindra Bank, IndusInd Bank, and HDFC Bank were the top gainers today along with Zee Entertainment Enterprises and Bajaj Finance. While, PowerGrid, Mahindra & Mahindra, Adani Ports, Hindalco, and Grasim Industries were among the top losers.

DII/FII Data:

DIIs pulled away Rs.335.64 crores, while FIIs showed their confidence in Indian markets by investing Rs.219.07 crores, as per the data available on NSE.

Insurance Sector is up for mergers and JVs:

Private sector general insurer Bharti AXA is set for merger into ICICI Lombard, after which the combined entity will have a market share of 8.7%. Under the arrangement, shareholders of Bharti AXA will receive two shares of ICICI Lombard for every 115 shares of the former. ICICI Lombard is eyeing to strengthen its distributor chain with this deal. The deal will now be the subject of regulatory approvals.

On the other hand, Axis Bank is looking to get in a joint venture with Max Life Insurance by increasing its stake from the current 1% to 30%.

Kalyan Jewellers planning to raise Rs.1750 crores through IPO:

One of the largest gold retail chains in India, Kalyan Jewellers eyeing to raise Rs.1750 crores through IPO. The company has files DRHP with SEBI. The company has 107 showrooms in India and 30 showrooms in the Middle East.

India’s Foreign Exchange Reserves Down by 23599 crore rupees:

As per the RBI’s weekly statistical supplement released on 21^st Aug, the country’s foreign exchange reserves declined by 2.939 billion US dollars (i.e. 23599 crore rupees) to $535.252 billion for the week ended August 14.