– Bharti Airtel to raise up to Rs 21,000 cr via rights issue
– Tata Sons may form holding company for Air India bid
– Indian exporters hit by container crunch
– Maruti’s output may fall further
Now lemme give you a quick glance on the state of the markets.
Dalal Street is likely to have a positive start this morning. Nifty futures on the Singapore Exchange traded 97 points higher at 8:20 hours (IST). Asian markets mostly were trading higher on Monday, extending rallies on Wall Street after cautious comments from Federal Reserve chief Jerome Powell on a potential withdrawal of its massive easing this year. MSCI’s broadest index of Asia-Pacific shares outside Japan was up by 0.19 per cent.
Elsewhere, the yield on 10-year Treasuries was at 1.30%. The dollar was nursing losses on Monday and kept near multi-week lows after Powell laid out a slower-than-expected path to rate hikes, while a storm lashing oilfields in the Gulf of Mexico lifted oil-exposed currencies. Oil prices rose around 1% on Monday after a powerful hurricane ploughed through the Gulf of Mexico. Brent crude was up by 84 cents or 1.2% at $73.54 a barrel.
That said, here’s what is making news.
The stock market could extend its record breaking run in the days ahead after investors perceived US Federal Reserve chairman Jerome Powell’s speech on Friday as dovish, helping ease concerns for now that the central bank will rush to reverse its bond-buying programme. Upsides however could be measured as concerns over the timing of pull-back in the monetary stimulus will loom over the markets, keeping investors on edge.
Small- and mid-cap stocks have suddenly gone out of favour following the recent sell-off in them. While analysts expect the broader market to underperform, some stocks could still be outliers. Analysts have increased their price targets on 26 stocks such as Vardhman Textiles, HG Infra, Orient Cement, APL Apollo, BSE, NOCIL, Arvind, JMC Projects, Route Mobile and Heritage Food, among others, by 10-40% recently.
Bharti Airtel plans to raise up to Rs 21,000 crore by selling shares to existing investors, as India’s No. 2 telecom operator seeks to bolster cash reserves to pay statutory dues, expand and deepen its network and prepare for the auction of 5G airwaves and roll out of the technology. Under the rights offer, shareholders will receive one new share for every 14 shares held at Rs 535 each, the Sunil Mittal-led telecom company said in a note to stock exchanges on Sunday.
LASTLY, Maruti Suzuki is expected to slash its production plans for September, as lockdowns in Malaysia aggravate the global shortage of semiconductors. The production cut will affect supply of cars to dealerships ahead of the festive season, and customers may have to wait longer to get delivery of the Vitara Brezza, Swift and other models from the company that makes every second passenger vehicle sold in the Indian market.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
Indraprastha Gas (IGL) has raised the prices of compressed natural gas (CNG) by 90 paise per kg and those of piped natural gas (PNG) used for cooking by Rs 1.25 per standard cubic metre.
State Bank of India is set to raise up to Rs 4,000 crore selling
Additional Tier 1 (AT1) bonds this week, the first such sale by a lender in the local market this fiscal year.
Tata Motors said it has received approval of the National Company Law Tribunal (NCLT) Mumbai bench to hive off its passenger vehicles business unit into a separate entity.
Vedanta said its board will meet next week to consider and approve the first interim dividend for 2021-22.
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!
