IIFL Finance Jumps 10%
IIFL Finance shares rallied more than 10 percent after the Abu Dhabi Investment Authority (ADIA) has picked up a 20 percent stake in its subsidiary IIFL Home Finance for Rs 2,200 crore.
The Abu Dhabi sovereign wealth fund will make the investment through a wholly-owned subsidiary, said IIFL Home Finance, which is among the largest affordable housing financiers with assets under management of Rs 23,617 crore.
IIFL Home Finance has entered into a definitive agreement for raising Rs 2,200 crore of primary capital for a 20 percent stake from a wholly-owned subsidiary of ADIA. The deal completion is subject to regulatory approvals, it said in a statement on Thursday.
Top Gainers and Losers in BSE Sensex
Europe Update
European markets fell more than one percent each after digesting European Central Bank’s rate hike commentary and awaiting US inflation data due later today. European Central Bank hinted that it will hike interest rates by 25 bps in July policy meeting, followed by next in September.
Transformers and Rectifiers (India) Limited received an order for Rs 186 crore
Transformers and Rectifiers (India) Limited has been awarded orders of Transformers for total contract value of
Rs. 186 Crores from one of the State Utility. This order falls under the normal course of business. With this order, the Company’s Order book as on date stands at Rs. 1482 Crores.
Market at 2.00 PM
Indices tank more than 1.75%, Sensex trading lower by around 1000 points, Nifty below 16,200
The Sensex was trading lower by 1,021.7 points or 1.85% at 54,299 and the Nifty was lower by 284.2 points or 1.73% at 16,214.45. About 1185 shares have advanced, 2025 shares declined, and 140 shares are unchanged.
Source:BSE
Nifty IT Index lose the most, down 2.15 percent; Wipro & Tech M down more than 3 percent
Source:NSE
Will LIC eclipse Paytm to become one of the worst IPOs of pandemic era?
LIC shares have fallen 25 percent from the issue price of Rs 949 per share after listing on May 17. The stock has seen an average decline of around 1.3 percent per session in 19 trading sessions. If…
Key trigger is fuel price crossing Rs 100/l. Work is going on in R&D to make amenable electric platforms for motorcycles, says Rakesh Sharma of Bajaj Auto pic.twitter.com/Xx4TbG0Usu
— CNBC-TV18 (@CNBCTV18Live) June 10, 2022
Fitch Revises Outlook on India to Stable, Affirms at ‘BBB-‘
Fitch Ratings has revised the Outlook on India’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to Stable, from Negative, and has affirmed the IDR at ‘BBB-‘. The Outlook revision reflects our view that downside risks to medium-term growth have diminished due to India’s rapid economic recovery and easing financial sector weaknesses, despite near-term headwinds from the global commodity price shock. We expect robust growth relative to peers to support credit metrics in line with the current rating. High nominal GDP growth has facilitated a near-term reduction in the debt-to-GDP ratio, but public finances remain a credit weakness with the debt ratio broadly stabilising, based on our expectation of persistent large deficits. The rating also balances India’s external resilience from solid foreign-exchange reserve buffers against some lagging structural indicators.
Market at 1.00 PM
Indices tank more than 1.5%, Sensex trading lower by around 950 points, Nifty around 16,200
The Sensex was trading lower by 952.7 points or 1.72% at 54,4372.6 and the Nifty was lower by 263.6 points or 1.6% at 16,214.45. About 1156 shares have advanced, 2010 shares declined, and 144 shares are unchanged.
Source: NSE
Santosh Meena, Head of Research, Swastika Investmart Ltd. on LIC
We believe India’s highly underserved life insurance market is still in its infancy and is well-positioned to capitalize on the enormous growth potential. LIC has several competitive advantages, including a strong brand value, a massive network of agents, and an enviable distribution network. Further, the company has plans to address concerns with the company like low VNB margins, loss in market share, high reliance on agency channel, etc. Additionally, the company’s issue was priced at a Price to Embedded Value of 1.1x, which was already at a discount compared to its global as well as Indian peers, and the current dip provides further valuation comfort. Another point we’d like to make is that investors should be aware that insurance is a long-term business; therefore wealth development and compounding occur only over time. One interesting observation that can be witnessed is that the low made on the first day of trade after the 30-day anchor investor’s lock-in period may act as strong support for a further rally for quality stocks. If fundamentals are strong it’s a good time to buy on such dips
Ravi Singh, Vice President & Head of Research, Share India on fall of LIC stock
LIC share prices may drop further till 700 levels and investors are advised earlier to exit their positions and wait for the turnaround of the sentiments. The high risk appetite investors may hold their positions. It is expected that in the long run, the business metrics of LIC will improve steadily. Investment done at lower levels will deliver good returns in the long term.
