The bullish momentum is likely to continue at Dalal Street on favourable signals from global markets. According to analysts, the return of foreign portfolio investors as buyers will give further momentum to the bullish market. FPIs on Tuesday bought over ₹2,300 crore worth shares. Experts believe, the fund will flow back to large-cap stocks while mid- and small-caps are likely to face some profit bookings.
RBI meet today
The three-day Reserve Bank’s monetary policy begins today. The outcome of the meeting will be known on Friday. Marketmen expect a status quo stance on interest rate from RBI but their focus will be on the comments on growth and inflation projections.
The SGX Nifty at 16,240 (8 am IST) signals a strong opening for domestic market. The Nifty50, which moved past the 16,000-mark at ease on Tuesday, closed at 16,130.75 and Nifty August futures closed 16,146.50, indicating another 100-point gap up opening.
S Ranganathan, Head of Research at LKP Securities, said: "Bulls pulled off the 16K mark today on the Nifty effortlessly buoyed by positive news flows on GST & Export data as domestic fund houses poured Rs 28,000 crore during the first four months of the current fiscal. The journey past 16K today quite clearly has been led by the Retail Investors who have allocated more into Equities even as FII’s sold worth Rs 9,500 crore during this period. The present rally is all the more significant since it provides enough opportunities to the new investor coming in now as several pockets of the economy still offer value going forward."
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, said: “Technically, on daily charts after a long time the index has formed a strong breakout formation which is broadly positive for the market. The strong bullish candle on daily charts clearly suggests further uptrend from current levels.”
After opening weak, the US stocks made a smart turnaround to close with sharp gains on Tuesday. Almost all Asian markets are ruling green, including China and Hong Kong, in early deal on Wednesday. However, Japan markets are down marginally.
STOCK TO WATCH
Tata Consultancy Services, a leading global IT services, consulting and business solutions organisation, has been enlisted by Rich Products to drive its end-to-end supply chain transformation, enhancing integrated planning and agility, and helping it meet changing customer demands.
Dr. Reddy's Laboratories Ltd, along with its subsidiaries, has announced the re-launch of over-the-counter Naproxen Sodium Tablets USP, 220 mg, the store-brand equivalent of Aleve, in the US market, as approved by the US Food and Drug Administration (USFDA). Naproxen Sodium Tablets USP, 220 mg, had US retail sales of approximately $316 million as of July 2021 according to IRI.
Linde India: The company signed a business transfer agreement with HPS Gases, Vadodara to acquire its entire packaged gases business along with certain distribution assets for an aggregate cash consideration of ₹27.5 crore.
Auto Stocks: The Ministry of Road Transport and Highways on Tuesday said it has issued a notification to exempt battery operated vehicles from the payment of fees for issue or renewal of registration certificate. In a statement, the Ministry said it has also exempted battery operated vehicles from the payment of fees for assignment of new registration marks. This has been notified to encourage e-mobility, it added.
Natco Pharma has transferred the Lenalidomide Capsules ANDA (2.5mg, 5mg, 10mg, 15mg, 20mg and 25mg strengths) to Arrow International Limited as per an earlier agreement between the parties. This transfer of the ANDA to Arrow does not materially change any of the terms of the agreement between the parties.
India Pesticides: The board of India Pesticides has considered and approved the further investment of Rs. 2.30 crore in Shalvis Specialities Limited, wholly owned subsidiary of the Company, by way of subscription to equity shares through Rights Issue.
GR Infraprojects has received Letter of Acceptance (LoA) for construction of elevated structures and 5 Numbers of Metro Stations viz, Gottigere, Hulimavu, IIMB, JP Nagar 4th Phase, Swagath Road Cross in Reach-6 line of Bangalore Metro Rail Project, Phase - 2 (Balance Works). The contract value is Rs. 364. 87 crore and the completion period is 21 months from signing of contract agreement.
IPO screener
Devyani International
The ₹1,838-crore public issue of Devyani International, the operator of KFC, Pizza Hut and Costa Coffee, will open for subscription today. Devyani International has fixed a price band for its public offer at ₹86-90 per equity share. The IPO comprises a fresh issue of ₹440 crore and an offer for sale (OFS) of 15.53 crore shares by the investor and promoter. Investor Dunearn Investments will sell 6.53 crore shares, and promoter RJ Corp will offload 9 crore equity shares through an offer for sale. The offer includes 5.5 lakh equity shares for the company's employees. From anchor investors, the company has raised ₹824.87 crore by allotting 9.16 crore shares at ₹90 a share.
Prominent investors who participated in the anchor book include Abu Dhabi Investment Authority, Fidelity Funds, Goldman Sachs, Government of Singapore, Monetary Authority of Singapore, Mirae Asset, Nomura Trust, Private Client Emerging Markets Portfolio, NS Partners Trust, Neuberger Berman Investment, Kuwait Investment Authority Fund, Vantagetrust, Best Investment Corporation, CLSA, Carmignac Portfolio, and Affin Hwang Select Asia Quantum Fund. Domestic investors including SBI General Insurance, Bajaj Allianz Life Insurance, SBI Life Insurance, Aditya Birla Sun Life Insurance, Sundaram Mutual Fund, ICICI Prudential, Tata Mutual Fund, and HDFC Life Insurance also participated in the anchor book.
Krsnaa Diagnostics:
Krsnaa Diagnostics' public issue comprises a fresh issue of ₹400 crore and an offer for sale of up to 85.25 lakh shares by existing selling shareholders - PHI Capital Trust-PHI Capital Growth Fund-I, Kitara PIIN 1104, Somerset Indus Healthcare Fund I, and Lotus Management Solutions (acting through Mayur Sirdesai). Krsnaa Diagnostics has been fixed a price band for its public offer at ₹933-954 per equity share. It seeks to raise up to ₹1,214. crore at the upper end of the issue price. Investors can bid for a minimum of 15 equity shares and in multiples of 15 equity shares thereafter. The company has raised ₹537 crore from anchor investors by allotting 56.29 shares at a price of ₹954 a share.
Among them included marquee investors such as Kuber India Fund, Volrado Venture Partners, HSBC, Tara Emerging Asia Liquid Fund, Societe Generale, Elara India Opportunities Fund, Nomura, Stock Mother Fund, and Segantii India Mauritius. Domestic investors that participated in the anchor book were Abakkus Growth Fund, ICICI Prudential, HDFC Life Insurance, SBI Mutual Fund, Tata Mutual Fund, Motilal Oswal Mutual Fund, Edelweiss, Nippon Life, Aditya Birla Sun Life, Kotak Mutual Fund, Max Life Insurance and Kotak Mahindra Life Insurance.
Windlas Biotech
The manufacturer of pharmaceutical formulations’ IPO comprises fresh issuance of equity shares worth ₹165 crore and an offer for sale (OFS) of up to 51.42 lakh shares. As a part of the OFS, Vimla Windlass will sell 11.36 lakh shares, and investor Tano India Private Equity Fund II 40.06 lakh shares. The company has fixed the price band of the initial share sale at ₹448-460 per share. The company is expected to garner ₹401.50 crore. Investors can bid for a minimum of 30 equity shares.
The company has raised ₹120.46 crore by allotting 26.18 lakh shares at ₹460 apiece to 22 funds including ICICI Prudential Mutual Fund (MF), UTI MF, Sundaram MF, Kuber India Fund, BNP Paribas Arbitrage, Elara India Opportunities Fund and Canara HSBC Oriental Bank of Commerce Life Insurance Company.
Exxaro Tiles, which plans to raise about Rs 161 crore, will come out with a fresh issue of ₹134.23 crore and an offer-for-sale of up to 22.38 lakh shares by Dixitkumar Patel. The company has fixed a price band of ₹118-120 per equity share. The company seeks to raise up to ₹161.09 crore at the higher end of the price band. Proceeds from the fresh issue would be utilised towards repaying/prepaying of borrowings, fund its working capital requirements besides utilising it for general corporate purposes. Vitrified tiles manufacturer has raised ₹23.68 crore from two anchor investors on Tuesday, ahead of issue opening.
Result calendar:
Adani Green Energy, Advik Laboratories, Alkali, AM Forge Ind, Apollo Tyres, Adani Total Gas, Artemis Electricals, Bharat Bijlee, Blue Star, Bosch, Butterfly Gandhimathi Appliances, Chambal Fertilisers & Chemicals, Cholamandalam Financial Holdings, Cosmo Films, Gabriel India, Godrej Consumer Products, Greenply Industries, HPCL, HG Infra Engineering, HT Media, Ikab Securities, Lyka Labs, Mayur Uniquoters, Nava Bharat Ventures, National Plastic, Natural Biocon, PNB Housing Finance, PTL Enterprises, SBI, Samkrg Pistons, Solara Active Pharma Sciences, Shriram Asset Management, Sonata Software, Subros, Sumeet Ind, Tata Steel BSL, Titan Company, Tasty Bite Eatables, Tata Communications, Thomas Cook (India) and Vardhman Special Steel are among the companies that will announce their June quarter.