Zomato anchor book gives glimpse of demand rush
The middle class gets a new savings option
Govt eyeing LIC IPO by fourth quarter
S&P again gives India lowest investment grade
Now lemme give you a quick glance on the state of the markets.
Dalal Street looked headed for a weak start this morning, as Nifty futures traded some 35 points lower on the Singapore Exchange at 7 hours (IST). Other Asian markets were mixed, after Wall Street fell from a record and bond yields rose. Top Wall Street indices slipped overnight after a surprise jump in US inflation stirred the debate on how long Fed policy can stay ultra-loose
Elsewhere, the US Treasury yield curve saw volatility on Tuesday. The dollar held gains. Oil edged lower after touching the highest price in more than two-and-a-half years. WTI crude dropped 0.3% to $75.05 a barrel
That said, here’s what is making news?
Zomato anchor book on Tuesday gave a glimpse of what’s in store for the IPO. iBanking sources said the total demand for the Zomato IPO during the anchor investment process was for about Rs 1.5 lakh crore, indicating an oversubscription of about 35 times. A total of 186 funds, which include some of the biggest names from the investment space globally, along with domestic mutual fund leaders, together picked up about 55.2 crore shares of food delivery major Zomato for nearly Rs 4,200 crore. The allotment to anchor investors was done at Rs 76 per share, the upper end of the Rs 72-76 IPO price band.
The government aims to list LIC by the last quarter of the current financial year and merchant bankers for the transaction will be appointed soon, T K Pandey, secretary, Department of Investment and Public Asset Management, said on Tuesday. He said the draft prospectus for the IPO would be filed soon. Pandey said a panel headed by Finance Minister Nirmala Sitharaman will decide on the exact quantum of share sale. He said the department of financial services was working on fulfilling other requirements for the IPO.
The latest survey of fund managers by Bank of America Securities shows majority of them expect the US Federal Reserve to signal tapering in August or September. “70% expect the Fed to signal taper in August or September. 39% of investors expect the Fed to signal tapering at Jackson Hole (meeting in August) while 31% of investors think September FOMC (Federal Open Market Committee meeting),” said Bank of America Securities.
There is a new savings option you can look at. Middle-class savings can now go into directly buying government bonds after the central bank on Monday allowed retail investors to buy into sovereign debt through dedicated accounts that wouldn’t attract costs. Ticket sizes for such investments could be as low as Rs 10,000. Before the year end, the final details of the retail account plans are expected to be made public, said a source familiar with the matter.
LASTLY,
Global ratings agency Standard & Poor’s (S&P) on Tuesday affirmed its rating for India’s long-term foreign currency and local currency sovereign credit at the lowest investment grade and retained the outlook as stable, saying the economy will recover following the resolution of the Covid-19 pandemic, and that the country’s strong external settings will act as a buffer against financial strains despite elevated government funding needs over the next 24 months. This is the 14th consecutive year when S&P has affirmed India’s rating at the lowest investment grade.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
Adani Electricity Mumbai is set to raise about $300 million via the group’s first ‘sustainable’ bond sales overseas
Maruti Suzuki is lining up the country’s largest single-location automobile investment as it plans to pump in up to Rs 18,000 crore for a new factory that may have a peak annual capacity of 10 lakh units.
Jefferies is bullish on construction and engineering major Larsen & Toubro (L&T) as it expects upside triggers to fructify in October-November.
Reliance Jio Infocomm added the highest number of active mobile phone users in April for the second successive month, reversing a trend of losing to Bharti Airtel in recent times.
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
