Market Recap 17 December 2020

By Prarit
Market updates

The markets were steady throughout the day and ended in the green. But, surprisingly, the market breadth was negative, as 34 of the Nifty50 stocks ended in the red.

Among the Nifty sectoral indices, Financial Services (+1.1%) and Pharma (+0.4%) were the top gainers, whereas Media (-1.9%) and PSU Bank (-1.4%) were the top losers.

Top gainers Today’s change

Divi’s Lab ▲3.0%
HDFC ▲2.7%
Bajaj Finance ▲2.4%

Top losers Today’s change

Coal India ▼1.7%
Maruti ▼1.7%

Biryani time at Jubilant FoodWorks

Jubilant FoodWorks has launched its biryani brand ‘Ekdum!’, marking its entry into the ₹3,000 crore biryani market. The company, which owns the master franchisee for Domino’s Pizza, currently has pizzas, donuts, Chinese cuisine, and ready-to-cook sauces and gravies in its portfolio.
The news seems to have triggered investor appetite, as the stock rose 5.5% to a record high. Meanwhile, shares of the recently listed Burger King (-9.9%) delivered a googly today by hitting both the upper and lower circuits on the same day.

Papermakers gain some weight

Investors took a fancy to shares of paper manufacturers such as JK Paper (+4.5%), Seshasayee Paper (+7.0%), Orient Paper (+4.1%) and Emami Paper (+20.0%). The rise in the stocks was coupled with a surge in volumes.
Since schools, colleges and several offices remain closed, the demand for paper, in general, has taken a hit. However, the price of kraft paper, used in making corrugated boxes, have risen by 30% in the last few days.
Chinese demand for kraft paper is likely to increase following the ban on waste paper import into China. This could lead to increase in imports of kraft paper from countries like India.

Crude oil prices inch higher

Crude oil prices hit a nine-month high for two major reasons. First, the US crude oil inventories have declined more than expected. Second, another round of stimulus is expected in the US.
The US has also begun its vaccination campaign on a wider scale, which could result in more people venturing out, thereby increasing demand for oil. The price of crude oil is up 6.6% this month and had risen 26.6% in November.

ITD Cementation on strong ground

Shares of ITD Cementation, a company specialising in urban infrastructure projects, rose 8.1% supported by high volumes. The company has made losses in this fiscal, as its business was disrupted by the pandemic.
However, the company is now seeing a recovery in demand, and has an order pipeline of nearly ₹13,000 crore. Further, unlike last fiscal, the management doesn’t expect any more write-offs in the project receivables.

Closing bell

Today, the markets sent confusing signals. The benchmark indices ended positive but nearly 70% of the Nifty50 stocks declined. The Nifty Midcap 100 reversed the intraday bullish trend and closed in the red. At this point, global indices are broadly positive and do not provide any cues that raise an alarm. However, in such a scenario, trading in a disciplined way would be a better option.