Brace for a busy July in Indian IPO mart
Options Traders betting on a major swing in Bank Nifty
HSBC says recent rally in Indian stocks up for a pause
FinMin slaps spending checks on several ministries
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 30 points higher on the Singapore Exchange at 7 hours (IST). Other Asian markets traded mixed amid a firmer dollar. Shares fluctuated in Japan and Australia and edged lower in South Korea.
The S&P500 nabbed its fifth straight record closing high overnight on Wall Street. Dow rose 210 points, the S&P500 gained 5.7 points, but the Nasdaq dropped 24.38 points.
Elsewhere, the dollar held an advance after completing its best month since March 2020. Oil retained a climb ahead of a meeting between Opec+ producers on output policy and as a stalemate in Iranian nuclear talks drags on. And gold traded at $1,769.34 an ounce.
That said, here’s what is making news?
Brace for a busy July in Indian IPO mart. The month is shaping up to be one of the busiest months for initial public offerings as the winning run in the primary market continues with investors making quick gains on recent listings. After five issues in June, 11 more companies, including Zomato, Clean Science & Technology, Glenmark Life Sciences, Krsnaa Diagnostics, GR Infra and Shriram Properties, are planning to launch IPOs in July to raise nearly Rs 18,000 crore, investment bankers said.
Option traders on Dalal Street have baked in an over 2% movement either side in the Bank Nifty over the next few sessions, going by the provisional value of a 35,000 strike straddle — Call and Put options — that expires on July 8. With weekly expiry slated for Thursday, traders have purchased July 8 expiry Call and Put options at strike price 35,000 for a provisional Rs 775 a share. Remember, 25 shares make one Bank Nifty contract.
India’s benchmark bond yields could rise about a quarter percentage point in the next six months, with inflation stoked by high transport-fuel prices and a global commodities super-cycle likely offsetting central bank efforts to hold down rates. An exclusive ET poll of 21 market participants, including mutual funds, brokerages, banks and rating companies, showed the likelihood of yields on the benchmark paper climbing to 6.25% by December
Global brokerage HSBC says the recent rally in Indian stocks could witness a pause as there are several uncertainties ahead in the near term. The risks include rising crude oil prices, inflation build-up, stretched valuations, high earnings expectations and uncertainty of the third wave of the pandemic. However, the brokerage is bullish on HDFC Bank, Axis Bank, Sun Pharma, Asian Paints, Cipla, M&M, HUL, Phoenix Mills, Avenue Supermarts, UltraTech Cement, HCL Technologies, Embassy Office Park, GAIL and Bharti Airtel.
LASTLY,
The finance ministry on Wednesday imposed spending checks on several departments, ranging from education and home to telecom and power, as part of a cash management exercise due to the “evolving” Covid situation and the Centre’s cash management requirements. While these departments can at best spend 20% of their annual allocation during July-September, 19 departments such as health, pharma, fertiliser, rural development, agriculture & farmers’ welfare, road transport and railways will not face any curbs.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
Vodafone Idea has reported net loss of Rs 6,985.1 crore for the quarter ended March, hurt by an exceptional loss
HDFC Bank on Wednesday said that it has started seeing green shoots of consumer spending revival and is going all-out to grow its share of credit card spending
Tata Motors has slowed down its search for a partner in the passenger vehicle segment and is, instead, looking to chart a new plan on its own.
The Capital Group, which manages over $2 trillion worth of assets across the world, has bought 2.08% in IIFL Finance for Rs 190 crore on Wednesday.
Naveen Jindal-led Jindal Steel and Power will be investing close to Rs 7,500 crore to set up a 2.25 million tonnes per annum integrated steel plant near the Krishnapatnam port in Andhra Pradesh
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
