Global cues indicate negative opening
All eyes on US Fed meet
Indian markets are expected to open on a weak note on Wednesday, as major global markets are trading in negative territory. As inflation across-the-globe rose sharply, all eyes are on US Federal meet on June 15-16.
Analysts say the domestic market will track the global markets for some more time, as the recent rally is mainly driven by excessive liquidity in the system. .
The SGX Nifty at 15,840 (8 am IST) indicates a negative opening for Nifty futures, which on Tuesday closed at 15,879. However, Asian-Pacific markets give mixed signal, with Korea, China, Taiwan and Australia ruling higher marginally while Hang Seng and Nikkei edged down. The US stocks closed in the red overnight.
“Investors would track various macro data points domestically and globally along with US Fed decision tomorrow. Though US Fed is not expected to take action this time in its MPC meet but investors would keep an eye on any hint at its future tapering plans given the recent surge in consumer prices,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking, said the market has been reaching new milestones almost every alternative day as one or the other heavyweight space keeps propelling it higher. But looking at the last few day’s price action, if index continues to move higher, it would certainly be a slow and steady in nature, he said and added: “At the current juncture, we advise momentum traders not too get complacent and keep booking profit on existing positions.”
Stocks to watch
Dalmia Bharat Sugar & Industries Limited plans to augment its ethanol manufacturing capacity to 15 crore litres per annum from January 2022 from 8 crore litres currently. The move is in line with the government’s decision to raise ethanol blending in auto fuels to 20 per cent by 2025 from around 8 per cent currently. With this capacity expansion, Dalmia Bharat Sugar will divert around 1,50,000 tonne of sugar for ethanol production compared to 60,000 tonne now. The expansion will happen at the company’s Jawaharpur, Nigohi and Kolhapur plants. One new distillery will be set up at Ramgarh.
Wipro has announced a strategic partnership with Aachen, Germany headquartered FEV, a leading global engineering provider, to jointly develop and market worldclass solutions for Software Defined Vehicles. The two organisations have jointly set up an innovation lab, which will develop automotive use cases, engineer a scalable software, electrical/electronic architecture and develop system features. With cloud and connectivity platforms becoming a part of every new automobile, the industrialization of SDV through this Innovation Lab will enable new and improved experiences for every driver and passenger.
LIC Housing Finance’s board has approved offer of 4.54 crore equity shares to the promoter — Life Insurance Corporation of India (LIC) — through preferential allotment on private placement basis. This is subject to shareholders approval at their extraordinary general meeting. Post-issue, the shareholding of LIC (promoter) in LICHFL will go up from 40.31 per cent now to 48.49 per cent.
Dr. Reddy’s Laboratories Ltd has announced about the receipt of an arbitration award issued by the International Center for Dispute Resolution, U.S., whereby a subsidiary of the company has been asked to pay an amount of $46.25 mn (towards milestones, interest and fees) to Hatchtech Pty Ltd., in relation to the asset purchase agreement entered into between the parties in 2015.
RITES Limited has emerged as Lowest bidder for a tender called by Railway Board, Ministry of Railways for railway electrification work on turnkey basis. The tender for two packages, package - 1 for 779 RKM on Southern Western Railway and package - 2 for 762 RKM on Northeast Frontier railways, will aggregate to ₹1,741 crore.
Shyam Metalics’ ₹909 crore initial public offering will close for subscription today. The issue has so far been subscribed 3.65 times at the end of Day 2 of issue. The IPO closes on June 16. The company has fixed the price band for its primary market offering at ₹303-306 per share. Shyam Metalics’ IPO will involve a fresh issue of shares worth up to ₹657 crore and an offer-for-sale amounting to ₹450 crore by existing shareholders, including Subham Capital, Subham Buildwell, Kalpataru Housefin & Trading, Dorite Tracon and Narantak Dealcomm.
Sona BLW Precision
The ₹5,500-crore Sona BLW Precision Forgings’ initial public offering will end today. The issue, which has been priced at ₹285-291 a share, has been subscribed by 0.27 time so far. The Blackstone-backed auto component maker public issue comprises fresh issue of equity shares of up to ₹300 crore and offer-for-sale (OFS) of up to ₹5,250 crore by selling shareholder Singapore VII Topco III Pte Ltd, an affiliate of the Blackstone Group Inc.4
Krishna Institute of Medical Sciences (KIMS) IPO opens for subscription today at a price band of ₹815-825 a share. KIMS Hospitals has raised ₹955 crore from 43 anchor investors ahead of the opening of its maiden IPO. KIMS Hospital’s ₹2,144-crore IPO opens for subscription on June 16 in the price band of ₹815-825 per share and closes on June 18. The ₹2,144-crore public issue comprises a fresh issue of equity shares worth up to ₹200 crore and offer-for-sale (OFS) of 2.35 crore shares by its existing promoters and shareholders.
Dodla Dairy IPO opens for subscription today and closes on June 18. The IPO comes with a price band of ₹421 to ₹428 a share. It comprises a fresh issue aggregating up to ₹50 crore and an offer for sale of up to 1.09 crore equity shares, including 92 lakh shares held by TPG Dodla Dairy Holdings Pte. Ltd. Dodla Dairy’s average procurement stands at 1.03 million litres of milk a day. Bids can be made for a minimum of 35 shares . Dodla Dairy has raised ₹156 crore from 18 anchor investors at the upper price band of ₹428 per equity share. The firm allocated allocated 36.46 lakh equity shares at the upper price
The IPO of (BSE-SME) Navoday Enterprises Ltd, a marketing and event management company, which opened on June 14, was subscribed by 1.14 times. The IPO price has been fixed as ₹20 apiece. The company plans to raise ₹46 crore and the market lot is 6,000 shares. The stock will be listed at BSE-SME. THe issue will clsoe on Thursday.
Times Green Energy (India) Limited, a Hyderabad-based company is set to launch it’s IPO on June 16 wherein it expects to raise ₹4.05 crore. The company has set an issue price of ₹61 per a share of ₹10 face value. The issue closes on June 22.
Asahi India Glass, CESC, Commercial Syn Bags, DIC India, Kakatiya Cement Sugar, Manaksia Steels, Nureca, Pritika Auto Industries, RITES, Somany Ceramics, and Welspun Enterprises.