S&P Global Ratings today assigned its ‘BBB-‘ long-term issue rating to the senior unsecured notes that Bharti Airtel proposes to issue. The rating agency has assigned a ‘BB’ long-term issue rating to the proposed subordinated perpetual securities (PERPS) issued by Network i2i. and guaranteed by Bharti Airtel. Bharti Airtel will use the proceeds for capital expenditure, repayment of existing debt, or any other purpose as allowed by regulations.
“At the higher end of the price band, Heranba IPO is reasonably priced at a PE ratio of ~25.05 times FY20 earnings per share. The company has a dominant market share in the domestic pyrethroids market. Further, its margins and return ratios are also better as compared to the industry average. Non-operational concerns such as a promoter group company being declared a wilful defaulter, and the company being a co-borrower in a term loan seem to be an overhang. Given the company’s steady topline growth, robust margins, good return ratios, strong market share position, low debt and reasonable valuations, we remain positive on the prospects of the issue,” INDmoney said in a report.
The coming session would be quite crucial, especially for banking stocks, according to Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking. “As far as Nifty is concerned, it has broken below ’20-day EMA’ and hence, any bounce towards 14775 – 14850 is likely to get sold into.,” he added.
Kotak Special Situations Fund (KSSF), managed by Kotak Investment Advisors Limited (KIAL), today announced that it has invested Rs 250 crore in Sanjaya Mariwala’s Special Purpose Vehicle (SPV), to help the latter buy-out two B2C supplement businesses — Setu and Edence from Omniactive Health Technologies Limited (OmniActive) as well as provide dry-powder for further investment in the nutraceuticals businesses.
RIL share price jumped over 2 per cent to Rs 2,048.70 apiece on BSE on Tuesday, after the oil-to-telecom conglomerate announced to reorganise its oil-to-chemical (O2C) business into an independent subsidiary by the second quarter of the FY22. RIL stock was the top BSE Sensex contributor, fueling the 400-point rally in the index. So far in February 2021, Reliance Industries Ltd share price has gained 8 per cent.
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“Whilst the markets have opened in the green, the short-term trend remains negative for the time being. Until we do not get past 15100 on the Nifty, any up move should be utilized as an opportunity to go short. The index has a support range between 14500-14700 but given the high volumes traded yesterday, there is every possibility we break that range,” said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Sensex and Nifty have come down from their highs and begun to trade flat, but still remain in the green.
“After a long gap, FIIs turned sellers yesterday. The combined selling by FIIs & DIIs pulled the market down sharply with a 306 point cut in Nifty. Sharp corrections like this are normal and even desirable in a bull market. When valuations are high some triggers will cause corrections. The escalation in Covid cases in Maharashtra, a spike in crude and rising bond yields provided the trigger for correction. Correction in Nasdaq yesterday is another reminder that excessive valuation cannot sustain. Investors should wait and watch for stability & consolidation in the market before making fresh commitments,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial
Sensex and Nifty surged higher on the opening bell on Tuesday morning. Sensex regained the 50,000 mark while Nifty was above 14,750. ONGC was the top Sensex gainer.
The initial public offering (IPO) of Heranba Industries opens for subscription today. The Rs 625 crore issue will remain available for subscription till February 25. Ahead of the issue, Heranba Industries has managed to raise Rs 187.5 crore from anchor investors, allotting them 29.90 lakh equity shares. The agrochemical company’s IPO includes a fresh issue of Rs 60 crore and the remaining is an offer for sale by existing investors. Pre-issue, promoters of the company own a 98.8% stake in the company which will be trimmed to 74% post issue. Other shareholders made up just 1.2% prior to the issue, which is expected to increase to 26% post issue.
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Nifty futures were trading 95 points or 0.65 per cent higher at 14,770 on Singaporean Exchange, indicating a positive opening for BSE Sensex and Nifty 50 on Tuesday. The headline indices have been in a bear grip for last four days with investors taking risk off the table on worries of surging commodity prices, rising bond yields and a fresh spike in Covid-19 cases.
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Headline indices jumped in the pre-open session hinting at a relief rally after five consecutive days of falling.
“The positive momentum continues in the oil complex with investors unabashedly predisposed to a bullish view. So, the unwinding of the Texas cold snap effect and the prospects of some delicate negotiation ahead of the next OPEC+ meetings in early March are imparting little influence on price and giving way to the anticipated commodity reflation effect of Democrats pushing President Biden’s $1.9 trillion stimulus through reconciliation and positive vaccine headlines. Several significant oil price revisions were announced overnight and may have contributed to the rally of over 3%. Among them, Goldman Sachs see Brent at $70 in Q2 and $75 by year-end as stockpiles deplete Socar’s head of trading believes oil will hit $80 a barrel this year,” Stephen Innes, Chief Global Market Strategist at Axi
Pre-open session on Tuesday saw Sensex and Nifty recoup some of Yesterday’s losses. Nifty regained 14,700.
SGX Nifty was up 97 points minutes ahead of the pre-open session.
The Supreme Court on Monday prevented the National Company Law Tribunal (NCLT) from taking a final call on the Rs 24,713-crore deal between Kishore Biyani-led Future Retail (FRL) and Reliance Retail, even as it allowed the tribunal to go ahead with the proceedings for merger of Future group and Mukesh Ambani’s Reliance group firms.
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A long bear candle was formed, after the formation of small negative candles in the last four sessions, which indicate that the downside momentum has started to gather strength. This could mean chances of more weakness for the Nifty in the coming sessions. The next crucial support is placed at 14335, which is an opening upside gap of 2nd Feb that formed after Union Budget and the crucial weekly support of 10 week EMA around 14365. Hence, both the support levels match intended decline for market.
The short term trend of Nifty continues to be negative. The pickup of downside momentum could signal more weakness in the next few sessions. The lower levels to be watched around 14350-14300, which could be achieved by this or by next week. Immediate resistance is placed at 14800-14850.
~Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The stock market’s powerful rebound from last year’s pandemic-related plunge have put investors in a buying mood. Dalal Street is full of energy as initial public offerings (IPOs) are hot again. A mixed bag of companies ranging from young ones, some of them yet to post profits, to ones with huge net worth such as LIC are selling shares to the public for the first time. Further, around 83 companies from sectors such as steel, cement, hospital, hotel, etc., have scheduled their IPO in the remaining part of the year. Let us see what investors should look for while choosing which IPO to invest in.
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SGX Nifty was up in the green, surging 70 points during the early hours of Tuesday. The jump in SGX Nifty suggests a positive start for domestic equity markets.