Tag: stock markets

Categories
Delhi News

54% fall in fund raising via initial public offering market

54% fall in fund raising via initial public offering market


With the stock markets going on a roller-coaster ride in 2022, fund mobilisation by companies through the initial public offering (IPO) market declined 54 per cent.

Amount raised:

Total issuances this year remained lower at Rs 55,472 crore as compared with Rs 1.22 lakh crore issued in 2021 as companies and promoters became cautious in the wake of volatility in the stock market. Promoters and companies turned cautious in 2022 as many high-profile IPOs of 2021 like Paytm, FSN E-commerce (Nykaa), Nazara Technologies, PB Fintech, CarTrade Tech, Easy Trip Planners, Aditya Birla Sun Life AMC and Fino Payments disappointed investors with their share prices falling steeply below their IPO prices.

3 active sectors:

Overall, IPOs issued have been concentrated in 3 major sectors (contributing to 56 per cent of the total issuance); edible oil, insurance and hospital & healthcare services. While the edible oil industry has performed very well on the stock market, the insurance industry (LIC) has taken a hit, while returns in the healthcare services industry are modest at best, according to a Bank of Baroda research report.

LIC biggest:

In the current year, 12 industries witnessed big ticket (Rs 1,000 crore plus) IPOs, of which the insurance sector (LIC) was the biggest with an issue size of Rs 21,000 crore. This was followed by industries such as edible oil (Rs 7,000 crore), hospital & healthcare services (Rs 3,200 crore), textile (Rs 3,100 crore) and courier services (Rs 3,000 crore), among others, BoB report said.

LIC’s market valuation fell by a whopping Rs 1.83 lakh crore to Rs 4.16 lakh crore as on December 23.

Listing at discount:

Out of 12 big ticket issuances, 5 were listed at a discounted price, averaging -5.3 per cent. LIC (-8.6 per cent) and Rainbow children’s Medicare (-6.6 per cent) were listed at a discount of even more than average. On the other hand, 7 companies were listed at a premium, averaging 13.5 per cent. Amongst these, Patanjali foods (30.8 per cent), global health (18.5 per cent), and campus activewear (21.6 per cent) recorded a premium above average, BoB said.

Out of a total of 84 companies (versus 99 last year), 17 per cent companies listed at a discount, 6 per cent companies were listed at the same price as the issue price, while 77 per cent companies listed at a premium.

32 pc trading at discount:

As on December 18, 2022, out of 84 companies, 32 per cent of the companies are trading (last price) at a discount (compared with issue price), while 68 per cent of them are still trading at a premium. Overall, these companies have recorded an average return (last versus list price) of 17.7 per cent in CYTD22, versus 7.6 per cent gains made by Sensex, BoB report said. “High IPO premium charged by some companies has led to investors burning their fingers as these shares crashed after listing on the stock exchanges,” said a fund manager.

Top performers & losers

The top performing companies include: Rhetan TMT, Jayant Infratech, Containe Technologies, Adani Wilmar, Veerkrupa Jewellers, Goel Food Products, Maruti Interior Prod, Sailani Tours N Travel, Venus Pipes & Tubes, and Ekennis Software Services, averaging return of 228 per cent.

Some of the stocks which gave negative returns this year included: Fone4 Communication. India, Safa Systems & Technology, EVOQ Remedies, Mafia Trends, Global Longlife Hospital, AGS Transact Tech, and Pace E-Comm Venture, averaging return of -50 per cent.





Source link

For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here

Categories
Delhi News

India’s market capitalisation hits new record high of Rs 280.5 trillion



The benchmark Sensex is 2.4 per cent shy of a new lifetime high but the market capitalisation (m-cap) of all companies listed on the BSE is already in the record books. At Thursday’s closing price, the total m-cap of 4,776 firms on the BSE stood at Rs 280.5 trillion, surpassing the previous high of Rs 280 trillion on January 17.


This, even if the Nifty Midcap 100 is currently 5.4 per cent below its lifetime high, while the Nifty Smallcap 100 index is down over 20 per cent. Achieving the highest-ever m-cap value can be partly attributed to this year’s big new listings such as Life Insurance Corporation of India (m-cap Rs 4.4 trillion), Adani Wilmar (Rs 95,091 crore) and Delhivery (Rs 40,627 crore).


“The fresh all-time high in m-cap is largely because of LIC’s listing, which has added another over Rs 4.4 trillion. I am not very convinced with this rally, which has been very sharp and swift. I have been making the suggestion that people book profits, especially those who have entered the market over the past two months. There are some serious global headwinds and growth concerns. India may stand out over the long term but it won’t be entirely insulated in the short term. Every neighbour of ours has some economic issue, which could affect us. The corporate earnings growth hasn’t been great so far. And it could be the same for the September quarter as a lot of firms will be suffering inventory losses, ” said independent market analyst Ambareesh Baliga.


Companies in the automobile and staples space have clocked good performance on a year-to-date basis which too has lifted the m-cap.



“Recent gains have been helped by a combination of factors including encouraging macro data, fall in commodity prices, slowing inflation that may lead to central banks around the world softening their monetary policy stance earlier than expected. Return of buying by foreign portfolio investors has also helped. The steepness of the rally, from the lows of June 2022, without any major correction on the way, has been beyond the expectations of most investors. This also reflects the relative strength of the Indian indices amidst the global turmoil. While some stocks are still much below their recent highs, this is a normal phenomenon with sectors and stocks taking turns to perform. Investors now eagerly await the Nifty50 touching all-time highs,” said Dhiraj Relli, managing director and chief executive officer, HDFC Securities.


From this year’s low on June 17, the benchmark indices have rallied more than 17 per cent. India is the best-performing major market in local currency terms over the past two months.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here

Categories
Delhi News

India at 75: 16 events that impacted Indian markets between 2003 and 2014


From the shift of Sensex to a free-float methodology to the great fall after global financial crisis of 2008-09, and recovery afterwards, here are 16 biggest events for stock markets from 2003 to 2014

Topics
stock markets | Indian market | Mutual Funds



1. February 1, 2003: UTI Mutual Fund is carved out of the erstwhile UTI as a Sebi-registered mutual fund. The Unit Trust of India Act, 1963, is repealed, and UTI is split into Specified Undertaking of Unit Trust of India (Suuti) and UTI Mutual Fund. UTI Mutual Fund is promoted by State Bank of India, LIC, Punjab National Bank and Bank of Baroda, with a combined holding of 45.2 per cent in the paid-up capital of UTI AMC.



TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.

SUBSCRIBE TO INSIGHTS


What you get on Business Standard Premium?


5 ARTICLE PACK
PAY AS YOU GO


₹
150
/for 5 articles

* Terms
  • 1. Lorem Ipsum is dummy Text

  • 2. Lorem Ipsum is dummy Text





Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor



First Published: Thu, August 11 2022. 18:00 IST





Source link

For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here

Categories
Delhi News

Are Indian stock markets turning domestic?



When the global headwinds became stronger and foreign investors started losing faith in Indian equity markets, it’s the domestic investors who filled the void. Their belief in India’s growth story, and in its strong economic fundamentals appeared unshakable.


A research report by Morgan Stanley says that since 2015, the holdings of foreign portfolio investors (FPI), in a sample of 75 Indian companies, have declined about 230 basis points (bps) to 24.8 per cent, while domestic mutual funds (MFs) have increased their stake by 580 bps to 9.5 per cent and individual investors by 157 bps to 9 per cent in the same period.





The FPI selling has been brutal since October last year. During the nine-month period since October, the investors net sold equities worth Rs 2.56 trillion, owing to a series of factors including geopolitical uncertainties and tightening monetary policy across central banks. In the June month alone, FPIs pulled out over Rs 50,000 crore, making it the worst sell-off in nearly two years. However, the tide turned in July as foreign investors turned net buyers, investing Rs 5,000 crore in Indian markets.


But the FPIs selling in the recent past cannot be the only reason why domestic investors came out on top. Let us take a larger sample. That of 1,770 NSE-listed companies for which the shareholding patterns are available.


So, in these companies, the share of domestic institutional investors (DIIs) along with retail and high networth individual (HNI) investors in the NSE-listed companies reached an all-time high of 23.53 per cent as of June end, according to data from primeinfobase. Domestic investors include domestic institutions such as mutual funds, insurance companies and pension funds etc.


The share of mutual fund holdings in Indian companies climbed to 7.75% in FY22 from 4.99% in FY17, while that of insurance companies and institutional investor LIC has declined during the same period.


The massive inflow of retail investors into the equity markets via Systematic Investment Plan or SIP and other routes has also contributed to the rise of domestic investments. According to the data available, there are about 55.5 million mutual fund SIP accounts through which investors regularly invest. Since FY17, SIP contributions have nearly tripled to Rs 1.24 trillion as of FY22.


The SIPs’ assets under management (AUM) climbed to Rs 5.76 lakh crore at the end of FY22, growing over 30 per cent annually in the last five years, according to data from Association of Mutual Funds in India. Retail investors total ownership in stocks climbed to 7.42% at the end of FY22 from 6.79% in FY17.


In addition, India’s pension fund EPF investments since 2015 in equities have ensured steady inflows into the markets. The EPFO had invested around Rs 1.23 trillion in exchange-traded funds (ETF) as of FY21. It has also invested in a pool of public sector companies over the years.


So, will this trend sustain? And is it a good sign that markets are not too dependent on foreign investors, who were once touted to be the “price setters”? Given their growing clout, Morgan Stanley has even handed over the tag to domestic investors.


Experts say that FIIs’ shareholding in Indian companies will rise over a period of time, given their relative under-allocation to India. At the same time, domestic investors’ shareholding will continue to remain strong. And it all bodes well for the market.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here

Categories
Delhi News

US rate hike fears spook markets


The meltdown in the US markets on Wednesday on fears of aggressive interest rate hikes rattled domestic markets investors, with key indices plunging 2.61 per cent on Thursday. With the sell-off led by foreign investors sending the pivotals crashing, the benchmark Sensex plummeted 1,416.3 points to 52,792.23 and the NSE Nifty fell 430.9 points to 15,809.40.

The rupee, too, extended losses, falling another 10 paise to close at a record low of 77.72 against the US dollar on Thursday, weighed down by a negative trend in domestic equities and unabated foreign fund outflows.

Foreign portfolio investors (FPIs) pulled out another Rs 4,899 crore, taking the total outflows to Rs 42,836 crore in May. Domestic institutions bought stocks worth Rs 3,225 crore but failed to prevent the market slide. The Sensex has fallen 4,183 points in May alone. LIC shares fell by 4.05 per cent to Rs 840.75 as against the IPO offer price of Rs 949. RIL plummeted 2.35 per cent, SBI 2.24 per cent and TCS crashed 5.17 per cent.

Markets plunged sharply lower, pressurised by weak global cues. The meltdown in the US markets, on the fear of aggressive rate hikes, rattled investors and triggered a weak start. “The situation worsened further due to heavy selling in the index majors across sectors wherein IT and metal majors were among the top losers,” Ajit Mishra, VP – Research, Religare Broking Ltd.

The broader indices too traded in sync with the benchmark and lost in the range of 2.5-3 per cent.

Thursday’s fall indicates that bears are in control as the Nifty has completely reversed the recent gains and again reached closer to the March low. In this highly volatile market, investors can focus on sectors like FMCG, pharma, capital goods and manufacturing whose valuations are moderate and reasonable on a long-term basis, said Vinod Nair, head of research, Geojit Financial Services.

On Wall Street, key indices extended losses on Thursday as investors fretted over the impact of surging inflation on US economic growth and corporate earnings. At 2:32 pm ET, the Dow Jones fell 0.5 per cent to 31,318 while the S&P 500 dropped 0.2 per cent to 3,914.





Source link

For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here

Categories
Delhi News

Here are top stocks to watch on April 18


Stocks to watch: The benchmark equity indices on the BSE and National Stock Exchange (NSE) had ended lower for the third successive day on Wednesday. The S&P Bse Sensex fell 237.44 points (0.41 per cent) to end at 58,338.93 while the Nifty 50 slipped 54.65 points (0.31 per cent) to settle at 17,475.65.

Markets were shut on Thursday and Friday on account of Mahavir Jayanti/Dr. Baba Saheb Ambedkar Jayanti and Good Friday respectively.

Here are the key stocks to watch on Monday, April 18, 2022:

HDFC Bank

The country’s largest private sector lender HDFC Bank on Saturday reported a 23 per cent jump in standalone net profit to Rs 10,055.20 crore for the March quarter, led by growth in loan demand across categories and lower provisioning as bad loans were trimmed. The bank’s net profit during the corresponding period of the previous fiscal stood at Rs 8,186.51 crore.

ICICI Prudential Life Insurance

ICICI Prudential Life Insurance on Saturday posted over two-fold jump in its net profit to Rs 185 crore for the January-March quarter on account of robust growth in new business.

The company had posted a profit after tax of Rs 64 crore for January-March FY2021, ICICI Prudential Life Insurance said in a regulatory filing.

For the full year 2021-22, the company’s net profit declined to Rs 754 crore from Rs 960 crore for the year ended in March 2021, it said.

Mahindra & Mahindra

Mahindra & Mahindra (M&M) on Saturday said it has agreed to sell over 34.75 lakh shares, constituting 22.81 per cent of the paid-up capital, in Mahindra Sanyo Special Steel Pvt Ltd (MSSSPL), to Japan-based Sanyo Special Steel Co Ltd in a Rs 212 crore deal.

Following the sale, the company’s holding in MSSSPL would become nil, M&M said in a regulatory filing. The Mumbai-based automaker will receive Rs 211.99 crore from the stake sale, it added.

InterGlobe Aviation (IndiGo)

IndiGo on Friday appointed former Shell India chairman Vikram Singh Mehta and former Indian Air Force (IAF) chief B S Dhanoa as independent non-executive directors.

Their appointment is “subject to receipt of security clearance from the Ministry of Civil Aviation (MoCA) and approval of the members of the company,” IndiGo said in a statement.

Mehta will replace Anupam Khanna, whose second term came to an end on March 26, and Dhanoa will replace former SEBI chief M Damodaran, who is stepping down on May 3, it said.

Dhanoa was IAF chief between January 1, 2017, and September 30, 2019, and Mehta was chairman of Shell Group of companies in India between 1994-and 2012.

Infosys

Infosys on Wednesday missed estimates for headline numbers for the March quarter. However, the company offered an encouraging revenue growth guidance for FY23 of 13-15 per cent in constant currency terms.

The software giant posted net profits for Q4FY22 of Rs 5,686 crore. Revenues for the quarter rose to Rs 32,276 crore.

-with PTI input





Source link

For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here

Categories
Delhi News

One in three IPOs this fiscal trading below its issue price


AT LEAST one in three initial public offerings (IPOs) this financial year since is currently trading below its issue offer price. In the past 10-plus months since April 1, 2021, in FY 2021-22, as many as 50 companies mopped up a record Rs 1,11,156 crore; state-owned Life Insurance Corporation too expects to mobilise over Rs 50,000 crore through an IPO this year itself.

During the same 10-month period, the benchmark sensitive index (Sensex) of the Bombay Stock Exchange gained over 16.5 per cent. BSE mid-cap and small-cap indices rose 18 per cent and 34 per cent, respectively during the period.

If investors in 18 companies out of 50 listed are sitting on losses, several others have generated only marginal gains. Of the 32 trading at a premium as on February 18, a dozen generated capital gains of up to 15 per cent which includes seven that have risen by up to 10 per cent, according to data compiled by The Indian Express.

Amongst the losers, investors in CarTrade Tech and One97 Communications (Paytm) suffered the maximum value erosion with shares trading over 60 per cent below their issue price. Even Zomato witnessed a sharp 36 per cent correction over the last one month; it is currently trading at Rs 86, which is 13 per cent over its issue price. FSN E-commerce (Nykaa) saw its share price fall from Rs 2,071 on January 17 this year to Rs 1,397 on February 18. The issue was priced at Rs 1,125. Data Patterns dropped from Rs 815 to Rs 652.20 during the same period.

The sharp fall must be seen in the context of a larger selling pressure in tech stocks. While the BSE Tech fell 8 per cent against the Sensex fall of 0.7 per cent since December 31, the Nasdaq has lost 13.4 per cent compared with the 6 per cent in Dow Jones.

Half-a-dozen IPOs are quoting at a premium of over 100 per cent and another six have returned between 50 per cent and 100 per cent capital gains since their listing.

The CEO of an asset management company said investors should be careful when there are many IPOs. “It is always seen that when the markets are on a high, IPOs tend to bunch up as companies hope to command a high premium. In such cases, promoters don’t leave much on the table for investors; they make the most,” said the CEO, who did not wish to be named.

The CEO further raised concern over the huge valuation demanded by new age technology companies and investor appetite. “If these companies could not make profit in lockdown when everything turned online, I am not comfortable with them when the economy has opened up,” he said.

The top ten gainers appreciated between 58 per cent and 273 per cent with Paras Defence and Space Tech topping the list with a gain of 273 per cent; its shares jumped from Rs 175 to Rs 654 after listing October 1, 2021.

Newsletter | Click to get the day’s best explainers in your inbox

The top loser is CarTrade Tech which came out with an IPO at Rs 1,618 per share. This share is now trading at Rs 586, a discount of 63.8 per cent. Investors also lost in the high-profile IPO of Paytm. The company which offered its shares at Rs 2,150 is now quoting at Rs 833.9 on the exchanges. The market capitalisation of Paytm has crashed from the IPO valuation of Rs 1.5 lakh crore to Rs 54,057 crore as on February 18.

“The large size of Paytm’s IPO coupled with a complex business model and high valuation metrics dampened the performance post listing. Despite this, the IPO story of India races ahead and the IPOs which were launched after Paytm, such as Go Fashion and Tega Industries proved to be extremely successful,” said Mohit Ralhan, Managing Partner & Chief Investment Officer of TIW Private Equity.

The year 2022 is expected to witness IPOs from LIC, Ola, Byju’s and Delhivery. India is home to 79 unicorns; 42 emerged in 2021 alone. “India is the third-largest startup hub in the world and has developed a strong ecosystem of entrepreneurs and venture capital investors, supported by favourable government policies, which will continue to feed into India’s accelerating IPO boom. The story has just begun, and the future looks quite bright,” Ralhan said.

An investment banker said the fate of the IPO market is linked to the strength of the stock market. If the stock market remains volatile and shows major correction, some of the issuers might postpone their IPO plans. On top of this, if issuers price their IPOs at high levels without leaving anything on the table for retail investors, there are bound to be some post-listing disasters.

With the US Federal Reserve planning to hike rates and tighten the monetary policy, foreign portfolio investors (FPIs) have started exiting from newly listed IPOs along with secondary markets.

Market regulator SEBI is also concerned about valuations. The IPO market price discovery is not as “transparent and efficient” as secondary market price discovery, SEBI Chairman Ajay Tyagi said while addressing a CII summit in September last year. In a consultation paper last week, SEBI said new age companies should make disclosures about their valuations based on issuance of new shares and acquisition of shares in the past 18 months before filing draft offer documents.





Source link

For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here