· FIIs raise bullish bets on index future
· Paytm parent’s unlisted stock jumps 70%
· Sebi rejects Franklin Templeton’s settlement plea
· Domestic banks warn customers against crypto deals
Now lemme give you a quick glance on the state of the markets.
Dalal Street looked set for a gap down start as Nifty futures on the Singapore Exchange traded nearly 40 points down at 7 am (IST). Stocks in other Asian markets edged higher, looking to extend their recent rally to a third week. US and UK markets are closed for a holiday today.
>> Among others, the dollar index stood near a five-month low of 90.062, Bitcoin fluctuated below $36,000, Oil prices were firm after gaining more than 5% last week to reach two-year closing highs.
That said, here’s what is making news?
FIIs have raised net cumulative bullish bets on index futures — Nifty and Bank Nifty — to a two-year high of 92,162 contracts, signalling further upside for the benchmark indices, said derivatives analysts. The last time FIIs were long to such an extent was on May 7, 2019, when they held 94,103 contracts. What’s adding to analysts’ optimism, is the plunge in fear gauge India Vix to a 15-month closing low of 17.40. The Vix hit a level of 16.9 on February 25 last year.
The unlisted shares of One97 Communications, promoter of Paytm, spiralled nearly 70% last week after the company decided to go ahead with an IPO —the largest ever by an Indian company. The country’s largest mobile payment firm, backed by China’s Alibaba and Softbank, is planning a public issue of around $3 billion or about Rs 21,700 crore, which could value the company at $25 billion to $30 billion or Rs 1.81 – 2.17 lakh crore.
The worry about economic uncertainty notwithstanding, Indian family-owned businesses are upbeat about their prospects in 2021-22. In a study of over 100 family-owned businesses by Executive Access India, conducted exclusively for TOI, 64% companies said they are optimistic in their outlook for the current financial year. A majority (51%) of such businesses see opportunities for growth in the domestic market with the focus on expansions, while 22% are contemplating diversification and 10% looking at growing business overseas.
Sebi has rejected the settlement application of Franklin Templeton Asset Management India (FT) for allegedly violating securities law in closing six debt funds last year, said people with knowledge of the matter. The regulator is expected to pass an order in the FT case under Sections 11 and 11B of the Sebi Act soon, they said. The capital market watchdog has wide-ranging powers under these sections, including the ability to issue directions to any intermediary or person associated with the securities market to protect the interests of investors.
LASTLY,
Leading Indian banks are clamping down on customers using bank accounts for cryptocurrency transactions. Over the past few months, HDFC Bank and SBI — to name two such lenders — have sent official notices to many customers asking them to clarify the nature of certain transactions… within 30 days and warning them of curbs — including permanent closure of accounts.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
>> Despite Covid-19 restrictions in several states, Coal India has maintained its output and despatch momentum in May, the second month of the current fiscal, an official said.
>> Analysts say M&M’s sustained focus on cash flow generation, and aggressive product lineup for the farm and automotive segments, will result in an uptick in PE multiple and the stock may to outperform
> Vodafone Idea’s (Vi) domestic lenders may have to take on additional provisioning burden in case the cash-strapped company fails to raise fresh capital by June-end, officials at two banks said.
>> Wipro has sold its entire stake in IT services provider Ensono for $76.24 million, as part of the company’s acquisition by private equity giant KKR.
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
