FII, DII participation on decline on D-Street
Sebi holds decision on GoAir, Birla MF IPO plans
SAT stays Sebi curbs on Franklin Templeton
ICICIdirect has new Nifty target at 17,500
Now lemme give you a quick glance on the state of the markets.
Dalal Street looked headed for a mild gap-up start this morning. Nifty futures traded some 11 points higher on the Singapore Exchange at 7 hours (IST). Other Asian markets opened lower after the reflation trade fizzled in the US amid new travel curbs in some parts of the world. Japan underperformed, while Australia and South Korea had more modest declines. On Wall Street, the Nasdaq and S&P 500 hit all-time highs overnight, but Dow fell 150 points, or 0.44%.
Elsewhere, the US Treasury yield curve flattened amid month-end index rebalancing. The dollar held steady after gains. Bitcoin traded steady around mid-$34,000. And Crude Oil held a drop with the market expecting Opec+ producers to increase supply at a forthcoming meeting.
That said, here’s what is making news?
FPI, DII participation is on a decline on Dalal Street. While Sensex and Nifty are hovering near all-time highs, institutional participation has declined to a 15-year low. Market participants said a drop in flows from foreign funds due to elevated share valuations has led to the drop, which has been offset by a jump in activity by individual investors starved of other high-yielding investment avenues. So far in June, the average daily turnover by institutions in the cash market, including FPIs and DIIs, has been only Rs 25,200 crore a day, about 30% of the aggregate Rs 79,600 crore on both NSE and BSE.
Markets regulator Sebi has put two applications for launching IPOs — by GoAir (now named Go First) and Aditya Birla MF — on hold without assigning any reason. Market players, however, said there are ongoing investigations against group entities, and not against these companies that have filed the offer documents with the Sebi, and hence the delay in getting a clearance from the regulator.
In some respite for the beleaguered Franklin Templeton Mutual Fund, the Securities Appellate Tribunal on Monday stayed a Sebi order that had barred the Fund House from launching any new debt scheme for two years, a decision that is related to the fund house’s April 2020 decision to close down six debt schemes. Sebi had also asked FT MF to refund investment management and advisory fees of about two years prior to closure decision, aggregating Rs 512 crore. Relating to this part of the Sebi order, SAT has asked the fund house to deposit Rs 250 crore in an escrow account.
Mukesh Ambani’s flagship RIL is said to have cooked up another major oil deal. RIL and Abu Dhabi National Oil Co, the state-run oil company of the UAE, have finalised an agreement for a petrochemical joint venture one and a half years after signing a broad framework agreement. RIL will be investing $1.2-1.5 billion in a factory to produce ethylene dichloride, located next to Adnoc’s integrated refining and petrochemicals site in Ruwais — the biggest such complex in West Asia. Adnoc is also expected to make a similar investment.
LASTLY,
ICICIdirect has set a target of 17,500 on the Nifty and 58,300 on the Sensex. This implies a gain of 10.6% over Nifty’s Monday closing of 15,814.70. The brokerage said the domestic stock market is showing resilience and scaling new highs amid encouraging corporate earnings and strong domestic macroeconomics. The brokerage expects broad based participation to continue with mid- and small-caps leading the gains.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
Standard Life of UK, the joint venture partner of mortgage financing major HDFC in HDFC Life Insurance, aims to sell a 3.5% stake to mop up about Rs 5,200 crore through block deals on Tuesday.
NTPC proposes to set up 1,000 MW of grid-scale battery storage systems at its power plants – one of the largest announced in India.
McLeod Russel is facing an NCLT judgement on its bankruptcy proceedings after a financial creditor moved an application against the company claiming it has defaulted on dues owed to it.
The Adani Group aims for its airports to annually handle 80 million passengers once all the eight projects in its kitty, including the mega Navi Mumbai airport, are up and running.
Tata Motors promises to bring 10 battery-powered vehicles to the Indian market by 2025 after having set the same deadline globally for a fumes-free Jaguar range.
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
