BSE Sensex jumped 627 points or 1.24 per cent to 51,069, while the NSE’s Nifty topped 15,150.
We are expecting a very good listing for this IPO, we suggest retail investors to apply for this IPO for long term as well as for listing gains also. Retail investors can expect a listing gain of 50%-75%. Based on FY2020 the IPO is priced at a PE of 58x at the upper end of the price band along with a very good ROE of 34% and ROCE of 35%. The company has the potential to grow exponentially in near future. Looking at the company performance in FY 2020 and strong balance sheet is given that we have certain concerns regarding competition in this business we are assigning a “SUBSCRIBE” recommendation to the issue.: Yash Gupta Equity Research Associate, Angel Broking Ltd.
The US dollar, being a fiat currency, has its own significance across the globe. The higher liquidity of the US dollar is supportive for the equity, whereas shortage creates havoc in the market. As we know that intermarket analysis plays a vital role, the formulas between two currencies are not only dependent on two country’s economic performance but also on other countries too.
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Trend is similar to January 2021, pure equity net negative by 10k cr led by profit booking or get re-allocation to alternate investment avenues like real estate / direct equity or IPO’s. It is good to see positive flows in the dynamic / BAF category, this is a good category in current times where the asset allocation model rebalance portfolios between equities an cash using valuation models. Some meaningful consolidation of markets could lead investors to come back and make fresh allocations at some stage, there is general worry on valuations and the current rally possibly unreal and therefore investors seem to be trying to time in some way. First few days march look slightly better with the redemption velocity coming down, but need to wait for how it plays through the month.: Akhil Chaturvedi, Head of Sales & Distribution, Motilal Oswal Asset Management Company
With the coinciding of the Maharashtra Government budget announcement and International Women’s Day, it was only fitting that some special announcements were made to further empower women. They have announced that Stamp duty will be relaxed by 1% if the house is registered in the name of a woman. The majority of women are buying homes now not only as an investment but also for financial security. This step by the government ratifies their support towards female homebuyers. It will also help provide security to dependent women as more men will buy houses in the name of the women in their family.: Ram Raheja, Director at S Raheja Realty
BSE Sensex was trading 241 points or 0.48 per cent higher at 50,682, while the broader Nifty 50 index gained 63 points or 0.42 per cent to 15,018
At the price of Rs 130 the annualised PE based on HY21 EPS comes to around 32. Comparing with other peers the issue looks moderately priced. 1/4th of the revenues of the company comes from exports which may boost going ahead owing to the China+1 strategy which would be likely adopted by global players. Diversified client base, capacity expansion, quality management, long term relationship with leading pharma companies and well-diversified product portfolio makes the company attractive. Also, the ongoing dream run in primary markets should be favourable for the company.: Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares
Also, the preferential allotment was done at Rs 250 on October 17, 2020, then at Rs 197 on November 04, 2020. Again nothing had changed in 18 days for the preference price to fall 20%. Taking all of the above into account we have an ‘Avoid’ on the IPO: Aditya Kondawar, Founder and COO, JST Investments
At the upper price band of Rs 555, the issue is priced at a 69x P/E and 5.8x P/BV. Annualizing the 9MFY21 sales, the company is coming at 7.5x Price to sales. The valuations are astronomical. The biggest concern for us is that the investor turned Promoter Group (KPI LLC) did a preferential allotment at Rs 197 in Nov 2020. Fast forward 4 months the IPO is coming at an issue price of Rs 555. What really changed in 4 months that the per-share price went up 2.8x? Nothing really changed in 4 months – so the price increase in the share doesn’t make any sense at all.: Aditya Kondawar, Founder and COO, JST Investments
Diverse customer base, global footprint, in house R&D, vertical integration and supply chain efficiencies are the key strengths of the company which are turning the prospects positive. Considering the favorable outlook for the chemical sector in the upcoming period one can subscribe to Laxmi Organic issue with a medium to long term perspective.: Likhita Chepa, Senior Analyst, CapitalVia Global Research Limited
Derivative data suggests that 15100-15200 is likely to act as stiff resistance for the current weekly expiry. PE writers are active on 15000-14900 strikes which are likely to act as support for weekly expiry. Nifty continues to remain in an uptrend in the medium and long term, so buying on dips continues to be our preferred strategy.: Rajesh Palviya, Head – Technical & Derivatives Research, Axis Securities Ltd
Nifty is in consolidating range of 14800-15200 since last 4-5 trading sessions. The chart pattern suggests that if Nifty breaks and sustains above 15100 then it would witness fresh buying action which could lead Nifty towards 15200-15300, however, if Nifty breaks below 14900 level it would witness selling which would lead the index towards 14800-14700 levels. Nifty is trading above 20 and 50 day SMA’s indicating positive bias in the short to medium term.: Rajesh Palviya, Head – Technical & Derivatives Research, Axis Securities Ltd
Markets are witnessing choppy trading for the past few sessions, with bulls and bears fighting it out for control. Positive global triggers have supported the overall trend, however, India VIX, the volatility indicator, has risen from the recent lows of 20, indicating marginal increase in investor concern. Overall, the expiry is likely to witness enhanced volatility, with a broader-range for Nifty seen between 14800 – 15200 for the current weekly expiry. Maximum OI for the weekly series is seen at 15100 CE & 15000 PE: Aamar Deo Singh, Head, Advisory at Angel Broking
Global bourses are showing strength since the last couple of days and hence, our market is refusing to correct. But at the same time, FIIs have started some selling which is not letting our market breakout in the upward direction. Basically, we are trapped in a range of 14900-15200. So, if there is no major action in global markets for next two days, then expiry is likely to pan out somewhere in the range of 14950-15150: Sameet Chavan, Chief Technical Analyst, Angel Broking
The MTAR stock is expected to be listed on the exchanges on the 16th of March and if grey market premiums are anything to go by then it is going to be nothing short of a bumper listing. One of the reasons for the expected bumper listing is that it is one of a kind company with no comparable peers. The company caters to marquee clients like ISRO, DRDO, NPCIL, Bloom Energy and Rafaeland is uniquely positioned to benefit from the Government’s focus on the defence sector and make in India initiative. We are positive on the long-term prospects of the company.: Jyoti Roy – DVP- Equity Strategist, Angel Broking Ltd
BSE Sensex and Nifty 50 may remain range-bound. With weekly expiry tomorrow instead of Thursday, the index may stay range-bound as per options data. 15k has maximum put OI whereas 15100 has max Call OI. So, unless there are any other cues to deal with, we may stay largely range-bound: Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder of Gemstone Equity Research & Advisory Services
Craftsman Automation Ltd Rs 824- crore IPO (initial public offering) will open for subscription on March 15, 2021. The company has fixed price band at Rs 1,488-1,490 per share of face value of Rs 5 each. The public issue comprises a fresh issue of equity shares worth Rs 150 crore and offer-for-sale (OFS) of up to 45.21 lakh equity shares by promoters and existing shareholders.
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Major Emerging market currencies have weakened due to dollar rebound and sustainable rise in US yields above 1.5%. If it continues, it will further add pressure to global equities and riskier currencies as the flight of capital will take off towards the US dollar. Seeing the global sell-off in equities, the domestic market also witnessed FII outflows of nearly $1.03bn in March, thereby pressuring USDINR pair. So far, the Rupee has been backed by inflows on account of various IPO’s, stake sale and bond issues. However, depreciation seems steady and overall the near term range shall be within 72.80-74.00 levels.: Amit Pabari, managing director, CR Forex Advisors
MTAR Technologies Rs 596-crore initial public offering (IPO), which was subscribed a massive 201 times, will finalise the basis of the allotment of the IPO on Wednesday, March 10, 2021. The public issue received a robust response from investors across all categories with qualified institutional buyers (QIBs) subscribing their portion 165 times. Non-institutional investors subscribed their reserved portion 651 times and retail individual investors (RIIs) 28 times. In the grey market on Tuesday, MTAR Technologies shares were seen trading with a premium of Rs 505 per share over the IPO price.
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We are treading towards the upper end of the Nifty range which is 15300. If we get past that, we would be out of the choppy zone and can then aim at achieving 15500-15600 on the index. Until then we will be stuck in this band between 14800-15300. A good support lies at 14800 and as long as that is not violated, the overall trend continues to remain bullish.: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
As of now, markets have shrugged off the initial scare triggered by the rising bond yields. Bulls are back in action in the mother market US. But in India continuous FII selling is preventing the markets from scaling new highs. Markets are likely to consolidate. Investors may utilize dips to buy high-quality names in private sector banking, insurance, IT, cement and autos. For mid- small-caps, there is more room to appreciate.: V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Index heavyweights such as HDFC Bank, Housing Development Finance Corporation, ICICI Bank, Reliance Industries Ltd (RIL) and Axis Bank were among top index contributors.
ONGC, Power Grid Corporation of India and Infosys were the only losers on the BSE Sensex index.
All the Nifty sectoral indices were trading in the positive territory. Nifty Bank index jumped 500 points or 1.63 per cent, while Nifty Financial Services surged 1.77 per cent.
Top BSE Sensex gainers were UltraTech Cement, HDFC Bank, Axis Bank, Bajaj Finance, ICICI Bank, IndusInd Bank and Housing Development Finance Corporation.
BSE Sensex jumped over 450 points or 0.89 per cent to 50,941, while the broader Nifty 50 index surged 141 points or 0.94 per cent to 15,100 on Tuesday.
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COMEX gold trades mixed near $1687/oz after a 1.2% decline yesterday. Gold trades near June 2020 lows weighed down by firmness in US dollar, higher bond yields and continuing ETF outflows. However, supporting price is progress on US stimulus and increased inflation expectations and geopolitical tensions. Gold may remain under pressure unless there is a major correction in US dollar index or bond yields: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
BSE Sensex jumped over 100 points or 0.26 per cent to 50,573 in the pre-opening session on Tuesday.
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The Nifty is in consolidation mode. Further directional cues are likely to emerge on a move beyond the 14862-15111 range. A close below 14862 is likely to lead to a correction towards the 50 day SMA which is currently at 14610. On the upside, crucial resistances to watch for signs of strength are at 15203.: Subash Gangadharan, Senior Technical & Derivative Analyst, HDFC Securities
Despite Covid-19 disruptions hitting businesses globally, Primary markets in India witnessed strong activity in the ongoing financial year 2021. Typically, IPO listings depend on the secondary markets and as a matter of fact, there were no new IPO launches or stock market listings in the first half but the second half of the financial year rewarded investors as equities made a resounding recovery. According to Prime Database, eighteen of the 23 IPOs so far this year saw first-day gains. That represents 78% of the total stock listings in the financial year 2021 as compared to only 69.23% of the total 13 IPOs in the financial year 2020 and 53.3% of the 15 IPOs in financial year 2019 saw listing gains.: Vaibhav Agrawal, Chief Investment Officer, Teji Mandi
Domestic gold and silver prices could start lower this Tuesday morning tracking overseas prices. Technically, MCX Gold April could see a downside pressure up to 43990-43750 levels. Resistance is at 44340-44560 levels. Technically, If MCX Silver May trades below 66000 levels, we could witness the Bearish momentum to continue up to 65100-64300 levels. Resistance is at 66400-67230 levels. MCXBULLDEX March could trade within the range of 13920-14150 levels.: Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold prices fell on Monday to a nine-month low, as the dollar and U.S. Treasury yields kept rising, prompting investors to dump the non-yielding metal. Domestic gold fell on Monday, while silver ended with small gains on Monday tracking overseas prices. The dollar climbed to a three-month peak, while the U.S. 10-year Treasury yield held near a more than one-year high on Monday. Meanwhile, the U.S. House of Representatives will take up by Wednesday the Senate version of the coronavirus relief package. Reflecting investor sentiments, SPDR Gold Trust ETF holdings fell 0.5% to 1,063.43 tonnes on Monday from 1,069.26 tonnes on Friday.: Sriram Iyer, Senior Research Analyst at Reliance Securities
Nifty futures were trading 89 points or 0.59 per cent up at 15,071 on Singaporean Exchange in early trade on Tuesday, indicating a gap-up opening for BSE Sensex and Nifty 50. In the previous session, NSE’s Nifty failed to hold the 15,000 mark on closing. According to a technical analyst, markets may fall further until indices cross 15280/51540 levels.
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Asian stock markets were trading lower on Tuesday. Japan’s Nikkei 225 index dropped 0.09 per cent. South Korean shares too fell sharply, with the Kospi down 1.98 per cent.
Foreign portfolio investors bought stocks worth $750.02 million in March so far. On Friday, they sold stocks worth $246.9 million. The flows from foreign portfolio investors have been impacted on account of increased volatility in the stock markets after bond yields globally have started seeing a spike. This is unlikely to trigger a huge selloff in the Indian markets, according to experts.
Nifty futures were trading 52 points or 0.35 per cent up at 15,034 on Singaporean Exchange, indicating a gap-up opening for BSE Sensex and Nifty 50 on Tuesday.
The markets on Monday ended marginally higher after stocks pared their gains because of weak cues from the Asian markets. The rise of crude oil prices after geopolitical tensions in the Gulf also made investors dump risky assets. The Nifty rose 18.1 points (0.12%) to close at 14,956.2 while the Sensex gained 35.75 points (0.07%) to 50,441.07.
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The Centre may no longer be able to postpone a cut in auto fuel taxes with the Brent crude surging more than 2% on Monday to approach $71/barrel, following a missile attack on Saudi Aramco’s facilities and improved outlook on the recovery of the global economy.
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