Equities surge on positive global cues, Nifty50 at record high
Positive global cues, along with healthy buying in automobile, capital goods and banking stocks, lifted the Indian equity markets, with the NSE Nifty50 touching record high levels during the mid-afternoon trade session on Monday.
According to market observers, the rally was aided by persistent pumping in of funds by domestic investors.
At 12.30 p.m., the wider 51-scrip Nifty50 of the National Stock Exchange (NSE) traded at a fresh new level of 10,164.25 points — up 78.85 points or 0.78 per cent — after touching a record intra-day high of 10,167.15 points.
Earlier, the Nifty50 had touched a record intra-day high of 10,137.85 points on August 2.
The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 32,361.37 points, traded at 32,474.38 points — up 201.77 points, or 0.63 per cent, from its Friday’s close at 32,272.61 points.
The Sensex has so far touched a high of 32,508.06 points and a low of 32,361.25 during intra-day trade.
The BSE market breadth was bullish — 1,586 advances and 827 declines.
Sify Editors @ 1:00 PM:
Bharat Road Network off to a slippery start
Even as shares of Dixon Technologies (India) Limited are basking in glory, having made a scintillating debut this morning following a successful IPO, the path to stardom appears quite slippery for Bharat Road Network, the other stock that has made its debut today.
Shares of Bharat Road Network opened at Rs 204.90, around its issue price of Rs 205. Then, after advancing to Rs 218.90 subsequently on the National Stock Exchange, the stock (Rs 218.65 on BSE), the stock retreated and and is currently up with a marginal gain at Rs 206.20.
While Dixon Technologies (India) Limited’s IPO was subscribed nearly 118 times, that of Bharat Road Network received lukewarm response and ws subscribed just 1.8 times.
The issue from Bharat Road Network received total bids for 5.3 crore shares against the issue size of 2.93 crore shares. The qualified institutional buyers portion was oversubscribed 1.33 times and non-institutional investors category was oversubscribed 1.63 times, while the retail investors portion was subscribed 5.69 times.
The company is a Road Build Operate Transfer firm, and is involved in developing and implementing roads and highways projects on public-private partnership basis in Kerala, Haryana, Uttar Pradesh, Madhya Pradesh, Odisha and Maharashtra.
The company, promoted by SREI Infrastructure Finance Limited, reportedly manages nearly Rs 6700 crore of road assets, including five operating projects and one under construction project aggregating to 2095 lane km.
Among the key competitiors to the company include Sadbhav Infrastructure Projects Limited, Ashoka Buildcon Limited and IRB Infrastructure Developers Limited.
The company reported consolidated revenues of Rs 75 lakh and Rs 10.25 crore for financial years 2015-16 and 2016-17, respectively. In the year 2014-15, it had posted revenue of about 8.5 crore. The company’s consolidated net losses in the three years (2015, 2016 and 2017) were approximately Rs 74 crore, Rs 92 crore and 26.4 crore, respectively.
The company plans to utilise the net proceeds of the Rs 600 crore it raised from the IPO, towards advancing of subordinate debt in form of interest free unsecured loan to its subsidiary, STPL, for part financing of the STPL Project among others.
Sify Editors @ 12:20 PM:
Nifty hits record high; auto stocks gain
The Nifty hit an all-time high on Monday, joining a rally in Asian shares, with banks, diversified conglomerates and automobile firms leading the gains.
Asian shares hit decade highs as investors regained confidence after the weekend passed with no new provocation by North Korea.
“There seems to be a global rally where liquidity is driving all markets. Markets have become very overbought,” said Sanjiv Bhasin, executive vice president of markets and corporate affairs at IIFL.
Trade deficit touched 2.4 percent of gross domestic product and inflation is rising, which means the Reserve Bank of India may not cut rates at its next meeting, he added.
Data released late on Friday showed India’s trade deficit widened to $11.64 billion in August from a month ago.
The broader NSE Nifty was up 0.72 percent at 10,157.90 as of 0555 GMT, with almost all sectors in the green.
Earlier in the session, it gained as much as 0.81 percent to a record high of 10,167.15. The benchmark BSE Sensex was 0.63 percent higher at 32,474.86.
The Nifty auto index gained as much as 1.4 percent, with Tata Motors Ltd rising as much as 2.8 percent and Bajaj Auto Ltd climbing up to 3.5 percent.
Sify Editors @ 11:30 AM:
Dixon clocks 60 per cent gains over issue price
Dixon Technologies, the recently concluded IPO clocked a figure of 2902.55 in intra-day trading on the BSE
The group B indexed scrip fetched better value than its IPO. In fact it clocked beyond 60% value in trading by the first half on Monday itself. The stock was priced during the IPO from September 6-8 at a price band of Rs 1760-1766, while currently the premium stands at Rs 2901 at 11:30 AM on Monday, a 63% hike from the IPO.
The consumer electronics scrip is already peaked to an intra-day high of Rs 2985 at 10:18 AM, and is poised to break into the 3000 mark with the Sensex itself trading 204.05 points up at 32476. The scrip has rallied 6.64% or 181 points up in intra-day alone.
Analysts had concurred a better outing for Dixon, and its IPO was subscribed 117.83 times.
Nearly 60 crore shares in addition to an offer for sale of up to 3053675 shares from select shareholders were made available during the IPO. Non institutional investors subscribed 345.61 times, while qualified institutional buyers did 134.66 times.
On the retail front too, the scrip was purchased 10.60 times.
Angel Broking in a note suggested that the company was anticipated to post higher revenues and improve its margins. Its presence in high growth segments, trained senior management. The company’s business model of being both an OEM and ODM (Original Design Manufacturer) should help it reach a larger base of customers.
According to Dixon’s website, under the OEM model, the company offers services rangin from global sourcing, manufacturing, quality testing and packaging to logistics to OEMs across the product verticals.
Under the ODM model, it develops and designs products in-house at its R&D centre and then undertakes the manufacturing and supply of such products to companies in India. In turn the companies distribute the products within their brands.
Within consumer electronics, the company manufactures set top boxes, LCD televisions, home theaters, DVD players, and also manufactured video cassettes, and LED television sets.
Dixon also manufactures washing machines through its subsidiary DAPL. Other products from the group include LED products, CFL lamps, Lamp drivers, and services such as reverse logistics for repairing and refurbished products.
The Noida based company also made a foray in the phones and cellphone industry in January 2016. It manufactures 4G/3G/2G smart and feature phones through a joint venture named PEPL for commercial production.
Dixon is one among the fifteen stocks indexed on the BSE. Some of the other stocks include Blue Star, Johnson Controls and Hitachi Air Conditioning (JCHAC), and Whirlpool India. Dixon has been getting a price far above the matured stocks such as JCHAC and Whirlpool.
For instance, Whirlpool has been trading at a price of Rs 1260, with a 2.22% intra-day change, while JCHAC is at at Rs 2015.65 with a 0.54% intra-day trading.
In case you are wondering if the stock’s over 60% rise to its issue price is really a trend, you could also consider investing in the stocks of Whirlpool and JCHAC.
Sify Editors @ 10:20 AM:
Nifty hits record high
Nifty hits an all-time high on Monday with financial and auto stocks such as Bank of Baroda Ltd and Bajaj Auto Ltd among the top gainers.
The broader index rose as much as 0.81 percent to 10,167.15, surpassing its previous record high of 10,137.85 hit on Aug. 2.
The Sensex was up as much as 0.73 percent at 32,508.06.
Sify Editors @ 9:30 AM:
The Sensex in the Green
The BSE Sensex and NSE Nifty50 surged during the early-morning trade session on Monday on the back of positive Asian peers and healthy buying in automobile, capital goods and banking stocks.
Around 9.20 a.m., the wider 51-scrip Nifty50 of the National Stock Exchange (NSE) rose by 70.15 points, or 0.70 per cent, to trade at 10,155.55 points.
The Sensex of the BSE, which opened at 32,361.37 points, traded at 32,449.33 points up 176.72 points, or 0.55 per cent, from its Friday’s close at 32,272.61 points.
The Sensex has so far touched a high of 32,465.01 points and a low of 32,361.25 points during intra-day trade.
The BSE market breadth was bullish with 1,087 advances and 210 declines.