>> Six IPOs leave investors spoilt for choice
>> Niti Aayog says six PSU banks out of the ambit for privatisation
>> FM says not all windows will be shut for cryptocurrencies
AND
>> 68% stocks still below Jan 2018 levels
Hi there. Welcome to ETMarkets Morning, the show about money, business and markets. I am Sandeep Singh.
Let’s start with a quick glance on the state of the markets.
Nifty futures on the Singapore Exchange showed strength this morning and hinted at a positive start for Dalal Street. Other Asian markets also made a steady start this morning. But the fact is, US 10-year yield has shot up to a 13-month peak. And the US Fed’s policy review is due later this week, adding to the uncertainty. S&P 500 and Nasdaq 100 futures traded with modest gains. In currencies, higher US bond yields have caused the dollar to rise against other major currencies. Oil prices have edged up, with Brent drifting near the $70 a barrel mark. Meanwhile, the Bitcoin surpassed the $61,000 mark in a meteoric rise over the weekend, but gave up some gains on Monday to trade below $60,000 level.
That said, here’s what else is making news.
IPO investors are spoilt for choice on Dalal Street with five new issues hitting the market besides the one which is already open. There is a frenzy among investors to get their share of these public offerings largely for listing pop. Nazara Technologies, backed by investor Rakesh Jhunjhunwala, is the top pick of analysts because of its distinction of being the first mobile gaming company to list in India. Laxmi Organic is likely to garner more interest than Anupam Rasayan, and Kalyan Jewellers is being recommended for risk-takers given its expensive pricing. Analysts also said Suryoday Small Finance Bank could be a better play for long-term portfolios and Nazara could be good for listing gains.
Finance Minister Nirmala Sitharaman offered some relief to the beleaguered cryptocurrency industry, when she indicated that not all windows will be shut for the digital currency when the government comes up with a new law to regulate this market. The crypto industry has been worried about a possible ban on its activities through the proposed legislation. “I have given my view on this. While we are very clear that the RBI may take a call on an official cryptocurrency or anything of that kind, from our side we are very clear that we are not shutting all options off,” she said.
As PSU bank employees strike work from today to protest against privatisation, Niti Aayog has made it clear that PSBs that were part of the last round of consolidation and State Bank India are out of the privatisation plan. These banks are Punjab National Bank, Union Bank, Canara Bank, Indian Bank, Bank of Baroda and SBI. The government will soon take a call on the two banks and one general insurer that will be taken up for privatisation in the new financial year.
Lingering uncertainty over the valuation of perpetual bonds could hit fundraising at public-sector lenders such as Punjab National Bank, Bank of India and Bank of Maharashtra, which plan to garner funds by selling debt instruments. While the Centre has ‘requested’ Sebi to review its order on the treatment of such debt, regulatory silence is making investors nervous and causing yields to harden.
LASTLY…
While the cream of the domestic equity market has clearly risen to the very top in the ongoing portfolio churn, it has left a visible void below. Top indices with hefty overseas ownerships have risen in lockstep with global equities to new summits, but the report cards for the back benchers aren’t too flattering. About 68%, or 1,818 out of the 2,688 stocks in the active listed universe, are currently trading below their January 31, 2018. That is the date from which long-term capital gain liabilities were grandfathered.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
Wipro is in talks with about half a dozen foreign investment banks to raise more than $1 billion in short-term overseas loans or long-term offshore bonds to part fund its acquisition of British IT consultancy Capco.
Allcargo Logistics is planning to bid for stakes in state-run Container Corporation of India and is in advanced discussions with a foreign investor to partner in the planned purchase.
Kalyan Jewellers will continue to increase its focus on studded jewellery, including diamond jewellery, as these products have widened the consumer base to which it caters.
ONGC, which is often perceived as a drag on the crude oil and natural gas produced in the country, has actually seen its contribution to the national production jump to over 70 per cent from under 53 per cent a decade ago.
Leading AC manufacturers like Voltas, Blue Star are betting on high double-digit growth this year even as they are firming up plans to increase prices of residential air conditioners by 5 to 8 per cent before the summer season starts.
Do also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.
That’s it for now. Stay put with us for all the market news through the day. Happy investing!
