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The positive bias is likely to continue for domestic markets on Friday ahead of Reserve Bank monetary policy outcome. Signal that the government is business friendly by introducing a Bill that seeks to do away with the contentious retrospective tax provision in Lok Sabha on Thursday will revive interests of foreign portfolio investors, said analysts. This is a bold step and a big statement from the government, they added. The Taxation Laws (Amendment) Bill, 2021 was introduced by the Finance Minister, Nirmal Sitharaman, in Lok Sabha on Thursday.
According to analysts, the market will move rangebound in positive territory ahead of the outcome of the three-day monetary policy. The RBI will detail out the rate stance and growth potential around noon.
Suman Chowdhury, Chief Analytical Officer, Acuite Ratings & Research, said: “There is a consensus in the markets that MPC will continue with its accommodative monetary policy given the continuing uncertainty on the growth momentum and the threat of another wave of the Covid pandemic. We don’t expect any action on interest rates or any major step towards recalibration of systemic liquidity at this point in time.”
The SGX Nifty at 16,332 (8 am IST) signals a positive opening for domestic market, as the Nifty 50 on Thursday closed at 16,300.65. Overnight, the US stocks too closed on a strong note at record highs. In an early deal on Friday, the Asian markets were mixed.
Vinod Nair, Head of Research at Geojit Financial Services, said large caps managed to continue trading at record high levels with the support from IT, Metal and FMCG stocks. Banking stocks continued to be under pressure ahead of the RBI’s policy announcement.
“Importantly, the broad market has started to underperform. Investors should be cautious in the short-term regarding the performance of mid and small caps after the thrilling rally during the year,” he added.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said: “Nifty made a new all-time high of 16349 on Thursday but however it took some resistance there and closed at 16285. Nifty has been rising on low volumes in the last two days, which is a matter of concern. Nifty has a strong support at 16200 and 16150. As long as it holds above these support levels, we may witness 16400 and 16450 on Nifty in the next few days.
IPO Screener
Devyani International
Today is the last date for all the four IPOs.
The ₹1,838-crore public issue of Devyani International, the operator of KFC, Pizza Hut and Costa Coffee, which opened for subscription on Wednesday, has so far been subscribed 6.61 times. Devyani International has fixed a price band for its public offer at ₹86-90 per equity share. The IPO comprises a fresh issue of ₹440 crore and an offer for sale (OFS) of 15.53 crore shares by the investor and promoter. The portion reserved for retail investors was subscribed almost 23 times while HNIs and QIBs portions received bids for 6.4 times and 1.3 times.
Krsnaa Diagnostics
Krsnaa Diagnostics’ public issue, which comprises a fresh issue of ₹400 crore and an offer for sale of up to 85.25 lakh shares by existing selling shareholders, has been subscribed so far by 5.4 times. Krsnaa Diagnostics has been fixed a price band for its public offer at ₹933-954 per equity share. It seeks to raise up to ₹1,214. crore at the upper end of the issue price. The portion reserved for retail investors was subscribed almost 22 times while HNIs portion received bids for 4.76 times.
Windlas Biotech
The IPO so far has been subscribed by seven times. The manufacturer of pharmaceutical formulations’ IPO comprises fresh issuance of equity shares worth ₹165 crore and an offer for sale (OFS) of up to 51.42 lakh shares. The company has fixed the price band of the initial share sale at ₹448-460 per share. The company is expected to garner ₹401.50 crore. Investors can bid for a minimum of 30 equity shares.
The portion reserved for retail investors was subscribed almost 13.67 times while HNIs portion received bids for 1.13 times.
The IPO of Exxaro Tiles, which plans to raise about ₹161 crore, through a fresh issue of ₹134.23 crore and an offer-for-sale of up to 22.38 lakh shares, has been subscribed 10.30 times. The company has fixed a price band of ₹118-120 per equity share. The company seeks to raise up to ₹161.09 crore at the higher end of the price band.
The portion reserved for retail investors was subscribed almost 21 times while HNIs and QIBs portions received bids for 0.93 times and 1.65 times.
STOCKS TO WATCH
Reliance Industries: Reliance Strategic Business Ventures Limited, a wholly owned subsidiary of Reliance Industries, has invested ₹20 crore in equity shares of Neolync Solutions Private Limited. A further investment of up to ₹40 crore, subject to Neolync achieving agreed milestones, is expected to be completed by March 2023. The total investment will translate into 40 per cent of equity share capital in Neolync on a fully paid up and diluted basis
Bhatat Dynamics, a Government of India enterprise under Ministry of Defence and Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) have signed a Memorandum of Understanding (MoU) for setting up a unit in the UP Defence Corridor. BDL will be setting up a manufacturing unit in Jhansi, as a part of its diversification and expansion plan. BDL is the only defence public sector company in the country manufacturing missiles and underwater weapons for the armed forces.
Gayatri Projects: Taaza International PTE Limited, subsidiary of Taaza International Limited has decided to invest to the tune of 5,77,20,000 equity shares of ₹2 each at an issue price of ₹45 each (including a premium of ₹43 per equity share) aggregating to ₹259.74 crore in Gayatri Projects Limited on preferential basis and the same has been considered and approved by the Board of Gayatri Projects.
Bhagiradha Chemicals: The Government of India, the Patent Office has granted patent to Bhagiradha Chemicals and Industries Limited for a term of 20 years from 27th day of September 2016 (date of filing), for its “process for preparation of azoxystrobin in high yields”.
Result calendar:
Aarti Industries, Abbott India, Alkem Laboratories, Anupam Rasayan India, APL Apollo Tubes, Asian Granito India, AU Small Finance Bank, Balkrishna Industries, BASF India, Bharat Electronics, BEML, Berger Paints India, Graphite India, Hindalco Industries, Indigo Paints, JK Tyre & Industries, Mahindra & Mahindra, Metropolis Healthcare, MTAR Technologies, Muthoot Finance, NALCO, Piramal Enterprises, SAIL, Sandhar Technologies, Sona BLW Precision Forgings, Tata Power Company, Torrent Power, Ujjivan Small Finance Bank, Voltas, and Zee Entertainment Enterprises will release quarterly earnings on
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