34 buzzing stocks in queue to join F&O elite club
Tata Motor’s surprise Q4 loss hides solid operating performance
IPO mart seeing a long lineup of healthcare firms
RBI steps up bond buying to bring down borrowing costs
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.
Dalal Street showed fatigue this morning after a good run over the past three days. Nifty futures on the Singapore Exchange traded some 97 points lower ahead of the opening of Indian markets. In the rest of Asia, stocks tracked overnight declines in US stocks, as investors retreated from shares of companies closely tied to the economy. Dow fell 0.8%; the S&P 500 0.9%, and the Nasdaq 0.6%. Treasury yields were steady. The yield on 10-year Treasuries ruled at 1.64%.
In currencies, the dollar slipped near the lowest level this year. The yen quoted at 108.95 to the dollar, the offshore yuan at 6.4249 and the euro at $1.2225.
Crude oil slipped after hitting a two-month high on Tuesday. WTI crude fell 0.7% to $65.01 a barrel.
Domestic gold and silver prices moved on a mixed note on Tuesday to close at Rs 48,341. In international markets, gold traded at $1,868.60 an ounce.
That said, here’s what else is making news.
Radhakishan Damani-owned Avenue Supermarts, and scrips such as SBI Card, IDFC, Tata Motors DVR, CDSL and Affle India are among the 34 companies that could be potentially added to the futures and options segment, said a note by IIFL Alternative Research. Other potential additions include Adani Green, Adani Transmission, Dixon Technologies, Astral PolyTechnik, Ipca Laboratories, Tata Communications, IndiaMART Inter-MESH, IEX, Emami, Coromandel International, Tata Elxsi, Aditya Birla Fashion and Retail, Indian Hotels, MCX, Sanofi, Polycab, Syngene, and Cyient.
Tata Motors, India’s biggest automotive group, may have logged losses but they fail to reflect the robust operating performance at the maker of JLR, which took one-off write-downs as part of the strategy to take the big cat Jaguar all electric. An ET analysis showed restructuring costs at JLR were cumulatively around Rs 15,000 crore, contributing to the Rs 13,395 crore net loss for FY21. The company on Tuesday reported a mammoth consolidated net loss of over Rs 7,500 crore due to exceptional losses related to subsidiary Jaguar Land Rover.
India’s primary market is likely to witness record fund raising by pharma, healthcare and related companies in 2021 as investors scout for firms that could benefit from the Covid-19 pandemic. Initial public offerings of at least 12 drug makers and healthcare companies are in the offing in 2021, according to bankers. In the past five years, only seven companies involved in the sector have hit the IPO market.
RBI has stepped up sovereign bond purchases in the past two weeks to help lower borrowing costs, signalling its commitment to go beyond announced plans as growth revival temporarily trumps inflation management at Mint Road. The central bank net purchased Rs 34,175 crore of sovereign papers between April 22 and May 4 from the secondary market to ensure lower borrowing costs amid concerns that the second Covid wave would derail the nascent economic recovery.
Investors are preferring flexi-cap mutual fund schemes to multi-cap offerings in a volatile market, Amfi data suggests. In the past two months, flexi-cap schemes generated an inflow of Rs 1,646 crore while multicap schemes had an outflow of Rs 349 crore. This shift in fund flows has occurred after the regulator Sebi’s deadline of January 31, 2021 to rename and change the investment strategy of multicap schemes.
And lastly, China has banned financial institutions and payment companies from providing services related to cryptocurrency transactions, and warned investors against speculative crypto trading. Under the ban, such institutions, including banks and online payments channels, must not offer clients any service involving cryptocurrency, such as registration, trading, clearing and settlement, three industry bodies said in a joint statement on Tuesday.
Now before I go, here is a look at some of the stocks buzzing this morning.
Wipro has gone past Cognizant in market capitalisation and is now the fourth-most valuable IT services firm globally after Accenture, TCS and Infosys.
The government, through Specified Undertaking of the Unit Trust of India (SUUTI), is selling nearly 2% stake in Axis Bank to raise about Rs 4,000 crore.
Promoters’ shareholding in Dish TV has fallen to 5.67% after trustees invoked shares sold them in open market on behalf of the lenders to whom the shares had been pledged.
The Competition Commission of India (CCI) has approved the acquisition of an additional 25% stake in Adani Krishnapatnam Port by Adani Ports & Special Economic Zone.
Gland Pharma has purchased assets of biopharmaceuticals firm Vitane Biologics for Rs 90 crore to scale up production of Russian Covid-19 vaccine Sputnik V in India.
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!
