Friday windfall awaits IPO investors on Dalal Street
ED taking a close look at Rs 100 crore life covers
RIL’s Q1 profit projections vary widely
Retail participation in IPOs hits a record
Now lemme give you a quick glance on the state of the markets.
Dalal Street may see some consolidation on Friday. Nifty futures on the Singapore Exchange traded some 23 points higher at 7 hours (IST). Stocks in other Asian markets made a cautious start. On Wall Street, Big Tech helped Dow and Nasdaq inch up to a higher close overnight.
Elsewhere, the dollar regained some of its recent strength overnight as Delta nerves weakened amid strong US corporate earnings. In the crypto world, Bitcoin rallied beyond $32,500 before closing at $31,900. Oil prices rose about $1.50 a barrel, extending gains made in the previous three sessions. Brent traded at $73.79 a barrel.
That said, here’s what is making news?
Friday should be a day of windfall for many investors on Dalal Street. Food technology platform Zomato is set to make a strong stock market debut on Friday with its shares likely to see a 25-30% first-day pop. The company, which was expected to list on July 27, finalised its share allotment on Thursday, prompting it to advance the listing day. This sent the unofficial betting market into a frenzy as the grey market premium surged to Rs 27-Rs 30 per share over its issue price of Rs 76 apiece from Rs 21-22 on Wednesday. Analysts recommend retail investors to lock in gains on listing.
Meanwhile, keep an eye on the RIL counter. The oil-to-telecom major is projected to report 30-50 per cent year-on-year rise in consolidated net profit for the June quarter on a 60-100 per cent jump in sales. Ebitda margin is seen contracting up to 260 basis points on a yearly basis. Sequentially, the performance may be weak due to lockdowns.
Heard of a Rs 100 crore life cover? ‘Jumbo life covers’, running into hundreds of crores, bought by rich Indians from offshore insurers have drawn the attention of authorities. Around 25 ultra-high net worth individuals across the country have received notices from the Enforcement Directorate for violating foreign exchange regulations which prohibit residents from purchasing life insurance policies from overseas companies without prior permission from regulators, according to three persons aware of the transactions.
LASTLY,
Retail investor participation in IPOs has hit a record high in recent issues fuelled by strong listing gains, improved trading infrastructure and faster online payment systems. With investors able to punt on IPOs with a click on the mobile trading application, the retail category of issues has been flooded with bids that are many times the shares set aside for them. This augurs well for the pipeline of upcoming mega issuances including LIC.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
Bharti Airtel is planning to invest around Rs 3,500 crore over three years to expand its data centre capacity between three and five times from the current 100 MW.
RBI has allowed IDFC to exit as the promoter of IDFC First Bank. The move could pave the way for a merger of the bank with its parent
Vodafone Idea could soon receive a Rs 15,000 crore infusion through the FDI route, though the home ministry has sought some clarifications regarding the investors.
Arvind Lifestyle Brands, a subsidiary of Arvind Fashions, is set to sell its value fashion retail business ‘Unlimited’ to V-Mart Retail for Rs 150 crore in a cash transaction.
Star Health and Allied Insurance, one of the largest standalone health insurers in the country, has filed a draft red herring prospectus with the regulators to go public.
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 with us for all the market news through the day. Happy investing
