Experts’ View: Jay Thakkar recommends one buy and sell recommendation
Jay Thakkar of Marwadi Shares recommended Dr. Reddy’s Laboratories in the view of its strong momentum. “The stock has started to form higher tops and higher bottom now, it is heading towards Rs 4,950-5,100 levels. So, one should buy Dr. Reddy’s with a stop loss of Rs 4,650.” Meanwhile, he suggested to sell an auto stock. “Tata Motors seems to have formed a clear double tap pattern on the daily charts. Indicators have provided a sell cross over with a negative divergence. So, Tata Motors can be sold with a stop loss of Rs 151 for a target of Rs 139 and Rs 136,” added Thakkar.
Route Mobile IPO: Check your allotment status now
The Rs 600-crore initial public offer of Route Mobile, a cloud communications service provider, was fully subscribed on the first day of its listing and ended with a stellar response from the investors. The IPO was subscribed 74.13 times on the last day of its bidding. It received bids for 89.23 crore equity shares against the IPO size of 1.2 crore shares.
Route Mobile has already garnered Rs 180 crore from 15 anchor investors including Goldman Sachs, Franklin Templeton Mutual Fund and SBI Life Insurance among others.
Here’s a step-by-step guide to help you check the allotment status on the Route Mobile IPO: You can check the status of your bid here: KFintech. Remember, the details will only appear post allotment. Continue reading
Gold rate today: Yellow metal falls on stronger dollar; Support seen at Rs 51,000 per 10 grams
Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Thursday following weakness in international spot prices amid a strong dollar. However, US Federal Reserve’s pledge to keep rates near zero levels for some time to reach 2% inflation target lent support to the yellow metal prices, analysts said.
At 10:50 am, gold futures for October delivery fell 0.68 percent to Rs 51,470 per 10 grams as against the previous close of Rs 51,824 and opening price of Rs 51,710 on the MCX. Silver futures traded 1.29 percent lower at Rs 67,891 per kg. The prices opened at Rs 67,900 as compared to the previous close of Rs 68,781 per kg.
“The gold prices declined after the US Fed’s comments supported the dollar. Recent developments over COVID vaccine also pressurized pecious metal. The bearish trend in gold may remain due to stronger dollar,” said Ajay Kedia, director, Kedia Commodity Comtrade. Read more
HSIL’s shares rally 10% on consideration of buyback
HSIL, the manufacturer and trader of building products saw its share price trading as much as 10 percent on Thursday after it said it will consider a share buyback on September 21. On an intra-day basis, the share price touched its 52-week high of Rs 75 per share on the NSE. However, at 12:05 pm, the stock lost marginal gains to trade 6.93 percent higher to Rs 72.55.
In its exchange filing, the company said, “Meeting of the Board of Directors of the Company will be held on Monday, September 21, 2020 to consider the proposal of buyback of the fully paid-up equity shares of the company.”
In its June quarter earnings, the company reported a net loss of Rs 17.35 crore as against the profit of Rs 14.34 crore in the corresponding quarter last year. Revenue from operations declined to Rs 251.55 crore as compared to Rs 439 crore last year.
The Gurugram-based company manufactures, sells and trades building products and packaging products. It also offers services in sanitaryware, faucets and glass bottles.
Flipkart eyes overseas listing as early as 2021
Walmart Inc-controlled Indian e-commerce firm Flipkart is preparing for an initial public offering overseas as early as 2021, which could value the firm up to $50 billion, sources familiar with the company’s plans told Reuters. Bengaluru-based Flipkart, which vies with players such as Amazon.com’s local unit in India and India’s Reliance Industries, will be aiming for a valuation in the $45-$50 billion range, according to one source with knowledge of the matter. If achieved, that would mean Walmart would have more than doubled its investment. Flipkart is likely to choose between Singapore, or the United States for the initial public offering (IPO), said two other sources, who asked not to be named as discussions are private. “Flipkart is incorporated in Singapore, but listing in the United States, where parent Walmart is headquartered, could give it access to a deeper pool of funds,” one of the sources said.
Dhanuka Agritech up 7% after company fixes buyback price at Rs 1,000 per share
Shares of Dhanuka Agritech rallied nearly 7 percent on Thursday, a day after the company approved the buyback of up to 10,00,000 equity shares at a final price of Rs 1,000 per share for an aggregate amount not exceeding Rs 100 crore. Dhanuka Agritech has fixed September 28, 2020 as the Record Date for the purpose of determining the entitlement and the names of equity shareholders who are eligible to participate in the buy back.
Commodity Update | Gold rate today: Yellow metal falls on stronger dollar; Support seen at Rs 51,000 per 10 grams
Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Thursday following weakness in international spot prices amid a strong dollar. However, US Federal Reserve’s pledge to keep rates near zero levels for some time to reach 2% inflation target lent support to the yellow metal prices, analysts said. Read more here.
Telecom Ministry tells Rajya Sabha, it has proposed network audits by all telecom companies. Under unified licence norms, each licensee has to undertake an audit of their networks.
Market Update | L&T Construction bags Rs 1,000-2,500 crore contracts for its Metallurgical & Material Handling business.
Technical View | We opened with a gap down but the trend continues to remain positive. The target of 11,800 is still open and one can utilize this dip to enter long positions on the index. The stop would be closing below 11,300, says Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Market Watch: Pritesh Mehta of Yes Securities
“Nifty pharma is going to outperform Nifty Index and from the pharma space we like Torrent Pharmaceuticals. On the point and figure chart we can see turtle breakout taking place, a double top breakout taking place. The setup is then positive so a buy for a target of Rs 3,050 and keep a stop loss of Rs 2,790.”
“Second is sell on Maruti Suzuki, we have reached a point where we have to be selective in autos. It was one of the major outperformers in the month of April, but there are signs taking place that certain stocks might drag down. So Maruti is one of them. On daily charts we can see several divergence taking pace, on the weekly charts we can see a pattern of bearish that is playing out so short Maruti for a target of Rs 6,700 and stop loss of Rs 7,150.”
Dalmia Bharat share price gains 3% after CLSA retains buy
Dalmia Bharat share price gained over 3 percent intraday on September 17 after CLSA maintained a buy rating on the stock. The global research firm has retained a buy on the stock and has cut target to Rs 1,000 from Rs 1,010 per share. It is of the view that capacity expansion should enable strong growth in the next few years. At current valuations, investors’ concerns are more than priced in, it added.
For Maruti, retail sales have been better than wholesale in August, says ED – (Marketing & Sales) Shashank Srivastava
JMC Projects jumps 6% as infra firm bags orders worth Rs 1,342 crore
JMC Projects (India) share price rose over 6 percent in trade on Thursday on reports of infra firm securing new orders worth Rs 1,342 crore across various segments. In a release issued to exchanges, the company said that it received infrastructure projects in East Asia of approx. Rs 725 crore, water supply projects in Odisha totaling Rs 471 crore and a building project in North India of Rs 146 crore. “We are particularly enthused with the new order win in East Asia, which enables us to further expand our presence in the international markets. We are confident that our strategy to diversify in the international markets will open up a huge opportunity for us going forward,” said S K Tripathi, CEO & Dy. Managing Director, JMC Projects. In the current year, the company has received orders exceeding Rs 5,300 crore against the initial guidance of Rs 5,000 crore, he added.
Happiest Minds lists at Rs 351, 111% premium over issue price
IT services firm Happiest Minds Technologies listed on the stock exchanges at a price of Rs 351 per share, a premium of 111 percent from the issue price. The Rs 702-crore initial public offering of Happiest Minds Technologies, promoted by Ashok Soota, garnered massive response from investors as it was subscribed a whopping 151 times. The price band for the offer, which closed for subscription on last Wednesday, was fixed at Rs 165-166 per equity share. Soota was also the founding chairman and managing director of MindTree Ltd. Prior to this, he was the vice-chairman of Wipro Ltd. The company proposed to utilize the net proceeds from the fresh issue to meet long term working capital requirements and general corporate purposes.
NEW LISTING: Happiest Minds lists at Rs 383.15 on exchanges; issue price of Rs 166 per share
HCL Tech top Nifty gainer after management’s comment of returning to pre-COVID levels latest by March 2021
Market Watch: Vikas Khemani, Founder at Carnelian Capital Advisors on Bharti Airtel
“Telecom is a good space to be in but you have to understand that stock has almost doubled from its lows in last couple of years, in last one to one and a half years based on the hypothesis that the average revenue per user (ARPU) will increase. You have to see that playing out. So I feel that playing out is very important. It is not a small marketcap, you will have to see how ARPUs progress from here. Those kind of things are being considered right now. In my opinion it has done very well and as ARPUs increase, we are waiting for that to pan out. Telecom is an interesting play, there is no doubt about that but it is going to consolidate and then as and when the ARPUs start increasing, you will see things panning out well.”
Opening Bell: Sensex opens 200 points lower, Nifty around 11,550; banks drag
The Indian market opened lower on Thursday following losses in global markets after the US Federal Reserve’s policymaking committee indicated the overnight rate could stay close to zero for years to reach its 2 percent inflation target. Losses in the domestic indices were led by banking, IT and auto stocks. At 9:18 am, the Sensex was trading 217 points lower at 38,086 while the Nifty fell 57 points to 11,547. Dr Reddy’s ONGC, Grasim, Britannia and Zee were teh top gainers while Hindalco, Tech Mahindra, IndusInd Bank, ICICI Bank and Bajaj Auto led the losses.
Airlines seek $1.5 billion interest-free credit line from govt
Indian airlines have sought interest-free credit of at least $1.5 billion from the government to enable them to cope with the loss of revenue from the coronavirus pandemic, the country’s aviation minister said on Wednesday. Airlines including IndiGo, Vistara, a joint venture between Tata Sons and Singapore Airlines, SpiceJet and state-run carrier Air India, also want the government’s help to persuade aircraft lessors to ease leasing terms, as well as a deferment of taxes and abolition of excise duty on aviation fuel, Hardeep Singh Puri said in a written statement to the parliament. The airlines are appealing to banks and other lenders to defer repayment of loans to the aviation industry by six months, the minister added. More Here
Oil steady as demand worries revive, crews return to US Gulf rigs
Oil prices were mixed in early trade on Thursday, just clinging to overnight gains, as concerns about weak fuel demand were in the frame again after Hurricane Sally blasted through the Gulf of Mexico into the southeastern United States. US West Texas Intermediate (WTI) crude futures were flat at $40.16 a barrel at 0118 GMT, after jumping 4.9 percent on Wednesday. Brent crude futures gained 5 cents, or 0.1 percent, to $42.27 a barrel, after climbing 4.2 percent on Wednesday. Prices were mostly in negative ground in early trade after a bigger than expected rise in U.S. distillate stockpiles, which include diesel and heating oil, raised alarm about fuel demand in the world’s biggest economy.
CAMS IPO to open on September 21, price band fixed at Rs 1,229-1,230/share
Computer Age Management Services (CAMS) is planning to raise about Rs 1,500 crore from the general public via initial public offering (IPO), which will open for subscription on September 21 to September 23. The price band is fixed at Rs 1,229-1,230 per share. Just like Chemcon Speciality Chemicals, the bidding by anchor investors will take place on September 18. The Chennai-based company seeks to raise Rs 2,240-2,242 crore from the market. The IPO consists an offer for sale of 1,82,46,600 equity shares by Great Terrain Investment, NSE Investments, Acsys Investments, HDFC and HDB Employees Welfare Trust, as per the draft papers filed with Sebi. CAMS is the largest registrar and transfer agent of mutual funds with an aggregate market share of approximately 70 percent based on mutual fund average assets under management. More here
Take a look at how markets are performing elsewhere.
Happiest Minds to list on exchanges today
IT services firm Happiest Minds Technologies, which concluded its initial public offering last week on a remarkable note, will make stock market debut on Thursday. The Rs 702-crore initial public offering of Happiest Minds Technologies, promoted by Ashok Soota, garnered massive response from investors as it was subscribed a whopping 151 times. The price band for the offer, which closed for subscription on last Wednesday, was fixed at Rs 165-166 per equity share.
US Fed touts economic recovery, vows to keep interest rates low
The Federal Reserve on Wednesday vowed to keep interest rates near zero until inflation is on track to overshoot the US central bank’s 2 percent target, a bold new promise aimed at bringing millions of out-of-work Americans back to the labor market. But the new guidance also marked the start of a vigorous monetary policy debate as the Fed shifts from a crisis-era focus on keeping markets afloat during the coronavirus pandemic to managing what it now sees as a steady, multi-year recovery. Underscoring the depth of disagreement, and the economic uncertainty that underlies it, the decision drew two dissents, one from a policymaker who thought it went too far, and the other from one who thought it didn’t go far enough. More here
US Fed’s Powell forecasts keeping interest rates at zero, inflation at 2% through 2023
First up, here is quick catchup of what happened in the markets on Wednesday
The Indian benchmark equity indices, Sensex and Nifty ended higher Wednesday led by gains in pharma, auto and realty stocks amid strong global cues. The Sensex ended 258.50 points or 0.66 percent higher at 39,302.85 while the Nifty gained 82.75 points or 0.72 percent to settle at 11,604.55. Broader indices ended mixed with Nifty Smallcap100 ending flat while Nifty Midcap100 gaining 0.3 percent. Rally in heavyweights such as M&M, Bajaj Finance, Bajaj Auto, Infosys, among other lofted Nifty above 11,600 levels.