Highlights:
Indian bourses open flat: Oscillates.
Indian Pesticide IPO gets a good response.
Gold slides:
Changes to Nifty 50: F & O Lot sizes down to facilitate less margins.
FPIs turn net Buyers: Investover Rs 12K Cr
MFs. Invest in select scripts.
Eye on Power and diagnostic lab shares
Stock Market Live Updates: Sensex, Nifty pare gains after opening at record high; banks gain, IT stocks fall
Stock Market Live Updates: Indian indices pared some gains after opening at record highs on Monday. Gains in banks, metals were offset by losses in IT and auto sectors. Broader markets were also in line with the benchmarks.
On Diagnostic stocks
One would still go with Metropolis or Dr. Lal Pathlabs given the fact that they have deep pockets and they would be able to stabilize their business very soon once it reaches critical mass. However, valuations are fairly demanding. I don’t think it is going to be so easy for people to be able to justify these valuations beyond a point. So on dips, you could add some of these names in the portfolio.
On Power stocks
The mix between renewables, conventional power, and distribution make some of the names like Tata Power very uniquely positioned. However, given the rapidly changing mix in our power supply between renewables and conventional power, you will also have Power Trading Corporation (PTC) kind of business that will start coming off the edge. Very positive on PTC. PTC and Tata Power are probably where I would put my money into.
Opening Bell: Sensex, Nifty open at record high led by metals, bank stocks
Indian indices opened at record highs on Monday, tracking gains in Asian peers after S&P500 hit another record high in the previous session. Back home, broad-based buying was seen across sectors with metal, energy, and auto stocks leading. The Sensex rose as much as 201 points to hit new high of 53,126.73 while the Nifty rose as much as 55 points to 15,915.65. On the Nifty50 index, ONGC, Cipla, RIL, SBI, and IndusInd Bank were the top gainers while HDFC Life TCS, Bajaj Auto, L&T and Maruti led the losses. Broader markets were also higher with the midcap and smallcap indices up 0.3 percent and 0.4 percent, respectively.
After Air India, Cairn to target more state cos to recover money due from govt
After Air India, Britain’s Cairn Energy PLC plans to target assets of state-owned firms and banks in countries from the US to Singapore as it looks to ramp up efforts to recover the amount due from the Indian government after winning an arbitration against the levy of retrospective taxes. A lawyer representing the company said Cairn will bring lawsuits in several countries to make state-owned firms liable to pay the $1.2 billion-plus interest and penalties that are due from the Indian government. Last month, Cairn brought a lawsuit in the US District Court for the Southern District of New York pleading that Air India is controlled by the Indian government so much that they are ‘alter egos’ and the airline should be held liable for the arbitration award.
Changes to Nifty50, 40 stocks F&O contract lot size come into effect
The new lot sizes of the Nifty50’s futures & options (F&O) contracts and forty stocks are applicable from the July F&O series. The National Stock Exchange of India (NSE) had decided to reduce the lot size for the Nifty50’s F&O contracts and 40 stocks on March 31. Accordingly, the F&O lot size of Nifty50 has been slashed to 50 from 75 and that of 40 individual stocks by 50 percent. The lot size for Nifty Bank at 25 and Nifty Financial Services at 40 has been kept unchanged. The reduction in the lot size for the Nifty contracts will reduce the margin requirements for futures trading by one-third, giving relief to retail traders.
Asian shares kick-off week on a cautious note as COVID-19 cases spike
Asian shares got the week off to a cautious start on Monday, with Chinese markets holding steady, as a spike in coronavirus cases across the region over the weekend hurt investor sentiment while oil hovered around 2-1/2 year highs. MSCI’s broadest index of Asia-Pacific shares outside Japan was last a shade weaker at 702.57. Australian shares slipped 0.2 percent. South Korea’s benchmark KOSPI was barely changed as was Japan’s Nikkei. Investors were concerned about a spike in coronavirus infections in Asia with Australia’s most populous city of Sydney plunging into a lockdown after a cluster of cases involving the highly contagious Delta strain ballooned. Chinese shares were a touch higher with the CSI300 index up 0.2 percent. Data over the weekend showed profit growth at China’s industrial firms slowed again in May as surging raw material prices squeezed margins and weighed on factory activity.
FPIs turn net buyers in June; invest Rs 12,714 crore in Indian markets
After remaining net sellers for two months in a row, foreign portfolio investors (FPIs) in June turned net buyers by pumping in a net Rs 12,714 crore into Indian markets. Prior to this, overseas investors had pulled out Rs 2,666 crore in May and Rs 9,435 crore in April. According to depositories data, FPIs invested Rs 15,282 crore inequities between June 1 and 25. At the same time, FPIs withdrew Rs 2,568 crore from the debt segment. The total net inflow stood at Rs 12,714 crore during the period under review. Bajaj Capital Joint Chairman and MD Sanjiv Bajaj said the inflow in June is on account of “favorable global cues and improving outlook for the Indian economy amidst a sharp fall in the number of COVID-19 cases easing of lockdown restrictions in some parts and a pick-up in vaccination.”
India Pesticides IPO subscribed 29 times on last day
The initial public offering (IPO) of India Pesticides, one of India’s leading agrochemical manufacturers, has been subscribed 29.04 times so far on June 25, the last day of the bidding process. The public issue received bids for 56. 07 crore equity shares against the IPO size of 1.93 crore equity shares. The portion set aside for retail investors has been subscribed 11.30 times while the part for non-institutional investors has been subscribed 51. 88, according to the subscription data available on the exchanges. Qualified institutional investors’ (QIPs) portion received 42.95 times subscription. The IPO size was reduced to 1.93 crore equity shares after the company raised Rs 240 crore from anchor investors on June 22.
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