Yash Gupta Equity Research Associate, Angel Broking
Krishna Institutional of Medical Sciences IPO will open on 16th June and close on 18th June 2021. The IPO size is of Rs 700 crore out of which fresh issue is Rs 200 crore and offer for sale by promoter group is Rs 500 crore (2.1 crores shares). The proceeds from fresh sales will be used for the repayment of debt of the company. KIMS is one of the largest hospital chains of South India, operating in Andhra Pradesh and Telangana. The company operates 9 multi-speciality hospitals with an aggregate capacity of 3064 beds and has more than 2500 operational beds. This is a very good time to launch an IPO in the hospital sector as after the covid 19 we have seen a one way rally in several hospital stocks, we have a positive outlook for the KIMS-IPO.
Market Watch: Jyotivardhan Jaipuria, Founder & MD, Valentis Advisors
Pharma is one area in which we are majorly overweight. It is slightly lower than what we were 6 months ago, but still it remains one of our big overweight bets. We are majorly underweight financials. But if we get a decent correction in corporate banks, then we would want to buy because over the next 2-3 years we will see NPAs coming off and the corporate banks will do well. We have some capital goods. We are neutral to slightly overweight capital goods. But that is something over the next 2-3 years which we think will do well and we keep adding to capital goods as we get dips in the market.
Amar Ambani, Senior President and Head of Research – Institutional Equities, Yes Securities
The stock market is solely focused on the future. Hopes of a quick economic revival post unlock and expectation of a large number of the adult population vaccinated in 2021, are keeping markets excited. Q4 FY21 earnings have been encouraging, even after adjusting for the low base of March 2020. The broader market is very healthy. It is very likely that the top 10 heavyweights of the Sensex, which have been dormant for some time, will begin to participate. Already RIL has resumed its up move after a six-month lull. This will add to the strength of Indian equities. Our target for Sensex is 60,000 by December 2021.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The Nifty is in fine form this morning – it is heading towards 15,900-16,000. A buy on dips is a better strategy to adopt as opposed to buying at the current market level. This is because the risk is to reward ratio is more favourable when traders accumulate positions on dips. The risk is lower and the targets are higher. The index has good support at the 15,600 levels and until we do not disrespect this level on a closing basis, the overall trend remains bullish.
Dabur to expand ayurveda range of products under healthcare vertical. Company aims to grow market share of ayurvedic specialities biz to 50% from 25% pic.twitter.com/s1OzDhF5ih
— CNBC-TV18 (@CNBCTV18Live) June 11, 2021
Bharti Airtel | CRISIL has assigned its ‘CRISIL GVC Level 1’ grading to the company. The grading indicates that corporate governance practices and value creation at the company for all its stakeholders are at the ‘Highest’ level.
Market Quote by Rahul Sharma – Head, Technical and Derivatives Research, JM Financial Services
“Markets have moved from resilience to exuberance as Bulls continue to march towards mount 16,000 in Nifty with sector rotation & earnings keeping the momentum alive. Falling US Bond Yields along with supportive global cues ensure Nifty didn’t break key support levels. Good monsoon, improving Covid situation & falling VIX should keep markets driving higher.”
KIMS to launch Rs 700-crore IPO on June 16; price band Rs 815-825
Krishna Institute of Medical Sciences (KIMS) will launch its Rs 700-crore initial public offering (IPO) for subscription on June 16. The General Atlantic-backed firm has set a price band of Rs 815-825 per share for the issue which will close on June 18. The company has 267 shareholders, including General Atlantic, which held a 40.91 percent equity stake in KIMS Hospitals. The public issue comprises a fresh issue of equity shares of up to Rs 200 crore and an offer for sale (OFS) of up to 2.35 crore equity shares by existing promoters and shareholders. The proceeds from the fresh issue will be used to repay the debt of the company and its subsidiaries and for general corporate purposes, the company said. More here
GOCL Corporation wins orders worth Rs 286 crore; shares hit 52-week high
Shares of GOCL Corporation hit a fresh 52-week high of Rs 296.40 apiece, surging over 16 percent in early trade on Friday after the company bagged orders worth Rs 286.63 crore. GOCL Corporation along with IDL Explosives Ltd (IDLEL), a wholly-owned subsidiary of the company, has bagged orders from Coal India for the supply of Raydets, Electronic and other Detonators and Cartridge Explosives over a period of 2 years. The orders are worth an aggregate amount of Rs 286.63 crore, the company said. It will be supplied over a period of 2 years i.e. from June 2021 to May 2023.
Suven Pharma shares rally 6% after it inks MoU with CSIR-IICT for COVID drugs Molnupiravir, 2-DG
Shares of Suven Pharmaceuticals Ltd (SPL) rallied over 6 percent in early trade on Friday after the company entered into MoU with CSIR-IICT for the process technology transfer and manufacture of anti-COVID drugs Molnupiravir and 2-DG. CSIR-Indian Institute of Chemical Technology, Hyderabad and CSIR-National Institute of Interdisciplinary Science & Technology, Thiruvananthapuram have entered into an agreement for the process technology transfer and manufacturing of the anti-COVID drug, Molnupiravir and 2-DG.
Here’s why SAIL is buzzing in trade
Steel Authority of India Ltd (SAIL) posted its Q4FY21 numbers. On valuation parameters, if SAIL is compared to its peers, it trades at a discount on a price to book of 1.1 times, and on an EV to EBITDA basis, it trades at sub-5 times. The biggest positive for SAIL’s numbers for the past year was the operating cash flow. In a single year, they generated Rs 23,000 crore of operating cashflows and that is the best coming in from SAIL. Net debt has declined by Rs 16,131 crore, coming to Rs 35,350 crore in FY21. Watch the accompanying video for details.
Gold loan companies could benefit due to higher inflation, says Geosphere’s Arvind Sanger
Some gold loan companies could benefit due to higher inflation, said Arvind Sanger, managing partner at Geosphere Capital Management, on Friday. Speaking in an interview with CNBC-TV18, he said, “Commodity producers will benefit and maybe some of the gold loan companies too. Housing lenders could be beneficiaries, ethanol too if oil is going higher and if the government has made a big commitment to ethanol. I think that is not going to go away in terms of importance where sugar stocks are related entities for ethanol.” More here
Morning market quote from V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
“The debate over the nature of inflation in the US – whether transitory or structural – continues. Only time will tell who is right. But for now, the market is strongly on the side of equity bulls who believe that the high inflation is transitory & will soon stabilise. Even though the 5 percent consumer inflation print in May came worse than the consensus estimate of 4.4 percent the market shrugged it off & the S&P 500 touched record highs. The fact that the US 10-year yield crashed to 1.44 percent and the dollar index is hovering around 90 indicates that there is more leg for this bull market. The exuberance in the mid and small-cap space is an area of concern. But markets can over-react proving the skeptics wrong in the short run. In 2017 the small index rose around 60 percent. The froth was removed in 2018 with big pain to the late entrants. Leading financial, IT, pharma and metals are on a strong wicket. Stay invested in these segments while exercising caution when investing in small-caps”
Why is mutual fund experiencing so much inflow now?
Equity mutual funds have witnessed inflows at a 14-month high of Rs 9,235 crore in May, making it the third consecutive monthly infusion. This happens despite the challenges triggered by the second wave of the COVID-19 pandemic and it shows that investors have finally started investing in Indian equities like before. According to Harsh Jain, Co-founder and COO, Groww – an investment platform, this is because fears of an economic downturn have been largely addressed. It’s crucial to note here that despite the massive second wave and the resulting lockdowns, the markets haven’t been adversely affected by the hopes of a quick recovery soon. More here
eClerx Services zooms 20%, nears record high on healthy Q4 results
Shares of eClerx Services were locked in 20 per cent upper circuit at Rs 1,617.35 on the BSE on Friday after the company reported healthy March quarter numbers (Q4FY21) with revenues up 19.3 per cent quarter on quarter (QoQ) in constant currency terms and 19.7 per cent QoQ in reported terms. The stock had hit a record high of Rs 1,775, in August 2016. In Q4FY21, the company’s profit after tax grew 39 per cent QoQ at Rs 98.8 crore.
Market Watch: Gurmeet Chadha, Co-Founder & CEO of Complete Circle Consultants
On Bajaj Finance: This is one stock which I am personally holding for quite some time and would continue to accumulate on dips.
On Banks: I would broadly stay with top two-three private banks including HDFC Bank, Axis Bank and ICICI Bank.
Opening Bell: Sensex, Nifty open at record highs; all sectors in the green
Indian indices opened higher with both benchmarks hitting new highs on Friday, tracking gains in Asian peers after US’ S&P500 ended at a record high. The Sensex rose 234 points to its new high of 52,534 while the Nifty jumped 78 points to its record high of 15,816. Broad-based buying was seen in all sectors lifting the sentiment further. Broader markets were also higher with the midcap and smallcap indices up 0.5-1 percent. On the Nifty50 index, Powergrid. COal India, Hindalco, JSW Steel and RIL were the top gainers hwile Tech Mahindra, Bajaj Finserv, Divi’s Labs, HDFC Life and Wipro led the losses. Among sectors, metals rose the most, up 1 percent while the banking, auto, fin services and energy sectors were up around half a percent each.
Three IPOs to hit the market next week
After a dull period owing to the second wave of COVID-19, IPOs are back, with three companies — Shyam Metalics, Sona Comstar and Navoday Enterprises — all set to launch their initial public offerings next week. All three will launch their IPOs on June 14. Here are the details of IPOs opening next week:
Shyam Metalics & Energy – Steel manufacturer Shyam Metalics & Energy will launch its IPO on June 14 at a price band of Rs 303-306 per share. The Rs 909-crore public issue comprises a fresh issue of up to Rs 657 crore, and an offer for sale (OFS) up to Rs 252 crore by promoters.
Sona Comstar – The IPO of auto component manufacturer Sona Comstar will open for subscription on June 14 and close on June 16. The price band for the issue has been fixed at Rs 285-291 per share. The Rs 5,550-crore offer comprises a fresh issue of Rs 300 crore and an offer for sale of up to Rs 5,250 crore by Singapore VII Topco III Pte Ltd.
Navoday Enterprises – Navoday Enterprises, a marketing and event management company, will also launch its IPO on June 14 with a price band fixed at Rs 20 apiece. The SME company aims to raise around Rs 46.08 crore from the issue which will close on June 17. The shares will be listed on BSE SME platform.
Fed to announce QE taper in Aug or Sept on rising inflation concerns: Poll
The Federal Reserve is likely to announce in August or September a strategy for reducing its massive bond-buying program, but won’t start cutting monthly purchases until early next year, a Reuters poll of economists found. A significant number of Fed watchers also said the central bank would wait until later in the year before announcing a taper, now the main focus for markets fretting over rising inflation as an end to the pandemic in the United States is insight. Booming demand with the US economy reopening is expected to continue and push up consumer prices this year, with the June 4-10 Reuters poll of over 100 economists showing an upgrade to both growth and inflation forecasts. Nearly 60 percent of economists or 29 of 50, who responded to an additional question said a much-anticipated taper announcement from the central bank will come next quarter, despite a patchy recovery in the job market in recent months. More here
TCS rewarded shareholders handsomely; investors earned 3,000% returns in 17 years
Tech giant Tata Consultancy Services (TCS) at its annual general meeting (AGM) on June 10 announced that it had disbursed Rs 33,873 crore to shareholders. The massive sum was paid via share buybacks and share dividends. TCS paid Rs 16,000 crore alone via a buyback.TCS Chairman, N Chandrasekaran, said that the company’s total dividend payout was Rs 38 per share, including three interim dividends of Rs 23 per share. Speaking about the meteoric rise in value of TCS shares over the past 2 decades, Chandrasekaran said, “Looking back, if you had invested in one TCS share at the issue price of Rs 850 in the IPO in 2004, the value of that investment today in a period of 17 years, would be around Rs 28,000, a return of over 3,000 percent on your investment.” TCS returned 95 percent of its free-cash-flow to shareholders in FY21, even as the company saw 17.1 percent growth in total contract value for the same period. More here
Fuel prices touch new highs; petrol crosses Rs 102-mark in Mumbai
The oil marketing companies (OMCs) increased fuel prices on Friday after keeping them unchanged on Thursday. The petrol price was raised by 28-29 paise and diesel by 28-30 paise per litre across cities. Accordingly, the price of petrol and diesel increased to Rs 95.85 and Rs 86.75 per litre in the national capital, as per Indian Oil Corporation, the country’s largest fuel retailer. In Mumbai, the petrol price changed to Rs 102.04 per litre on Friday. The cost of diesel advanced to Rs 94.15 a litre. In last 11 days, petrol and diesel prices have been hiked by up to Rs 1.70 per litre.
