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ETMarkets Morning Podcast (ET Online and Agencies)
Why are promoters selling stakes?
05:07 Min | August 12, 2021, 9:41 AM IST
Tune in as we tell you what's happening in the market, what's making news this morning, and look at some of the buzzing stocks.
Transcript
Hi there, Good Morning. Welcome to ETMarkets Morning, the show about money, business and markets. I am Nikhil Agarwal. Let's start with the headlines first.
- Cairn executives seek clarifications on settlement of retro tax
- Govt aims to sell off AI, BPCL within this fiscal
- ITC open to demerge hotels biz, list IT arm
- Aditya Birla AMC Likely to Launch IPO in September
Now lemme give you a quick glance on the state of the markets.
Dalal Street is set for a positive start this morning. Nifty futures on the Singapore Exchange traded some 30 points higher at 8 hours (IST). Asian peers were mixed on Thursday as China’s regulatory push sapped sentiment.
Elsewhere, the US 10-year Treasury yield held at 1.34%. The dollar hovered near a four-month peak against major peers while Bitcoin traded below $46,000. Oil prices were steady on Thursday. Brent crude futures edged higher by 5 cents to $71.49 a barrel.
That said, here’s what is making news.
The uber-rich — and the not-so-rich — aren’t the only folks making serious money this IPO season on D-Street. The otherwise conservative treasury units at high-street lenders are reportedly raking it in as well through the IPO frenzy, with the average Indian saver finally taking a bite into the likes of Zomato. Banks are said to have substantially subscribed to recent issues such as Tatva Chintan Pharma, GR Infraprojects, Clean Science & Technology, Shyam Metalics, and Laxmi Organics.
The record-breaking stock market rally has prompted promoters of nearly 130 companies to sell a portion of the holdings in their companies in the last three months. According to stock exchange disclosures, promoters of HDFC Life, Coforge, TVS Motor, CG Consumer, Max Financial Services, Quess Corp, Bharat Forge and GMR Infra, among others, have sold shares worth Rs 21,000 crore in the open market. Globally, investors keenly track what promoters are doing with their shares as it offers clues about what they think about the company's future. Promoter buying may indicate that the stock is undervalued. If they sell, the stock is considered fairly valued, according to experts.
The BSE on Wednesday rolled back some of the stringent measures announced on Monday, aimed at curtailing excessive price moves in smaller stocks, after a sharp sell-off in the broader market triggered protests by traders and investors. The clarification issued midway through the trading session alleviated worries about the impact of strict curbs on small and midcap stocks, which recouped a chunk of their losses on Wednesday, but still ended in the red.
LASTLY,
More caution is warranted in the mid- and small-cap space in the coming days even though the broad market indices saw a sharp turnaround from their lows in Wednesday’s session after the BSE eased its earlier plan to impose strict price movement restrictions. Analysts said those who have made gains in mid- and smallcaps over the last one year should book partial profits and buy more of heavyweight stocks such as Larsen & Toubro, Pidilite Industries, Reliance Industries, HDFC Bank, Siemens, Tata Steel and Bharti Airtel for a 5-8% upside.
NOW Before I go, here is a look at some of the stocks buzzing this morning...
Tata Power and Saudi Arabia's AlJomaih Energy & Water Company have emerged the lowest bidders for three solar projects adding up to 500 MW at the Neemuch Solar Park in Madhya Pradesh.
Credit Suisse sees a 62% upside to Bharti Airtel shares as the telecom sector at a crossroads amid Vodafone Idea’s financial woes. The brokerage said Vodafone Idea’s situation is likely to remain
difficult even if relief measures are announced to help the company.
ITC chairman Sanjiv Puri on Wednesday reiterated that it is not ruling out the possibility of restructuring of different businesses, including demerger of hotels and even listing of ITC Infotech, a subsidiary of the FMCG-to-hotel-to-tobacco conglomerate, on the bourses.
India Cements on Wednesday reported that its net profit on a standalone basis more than doubled to Rs 37.4 crore in the first quarter of FY22 from the same period a year ago.
Do also check out over two dozen stock recommendations for today's trade from top analysts on ETMarkets.com.
That’s it for now. Stay with us for all the market news through the day. Happy investing!
- Cairn executives seek clarifications on settlement of retro tax
- Govt aims to sell off AI, BPCL within this fiscal
- ITC open to demerge hotels biz, list IT arm
- Aditya Birla AMC Likely to Launch IPO in September
Now lemme give you a quick glance on the state of the markets.
Dalal Street is set for a positive start this morning. Nifty futures on the Singapore Exchange traded some 30 points higher at 8 hours (IST). Asian peers were mixed on Thursday as China’s regulatory push sapped sentiment.
Elsewhere, the US 10-year Treasury yield held at 1.34%. The dollar hovered near a four-month peak against major peers while Bitcoin traded below $46,000. Oil prices were steady on Thursday. Brent crude futures edged higher by 5 cents to $71.49 a barrel.
That said, here’s what is making news.
The uber-rich — and the not-so-rich — aren’t the only folks making serious money this IPO season on D-Street. The otherwise conservative treasury units at high-street lenders are reportedly raking it in as well through the IPO frenzy, with the average Indian saver finally taking a bite into the likes of Zomato. Banks are said to have substantially subscribed to recent issues such as Tatva Chintan Pharma, GR Infraprojects, Clean Science & Technology, Shyam Metalics, and Laxmi Organics.
The record-breaking stock market rally has prompted promoters of nearly 130 companies to sell a portion of the holdings in their companies in the last three months. According to stock exchange disclosures, promoters of HDFC Life, Coforge, TVS Motor, CG Consumer, Max Financial Services, Quess Corp, Bharat Forge and GMR Infra, among others, have sold shares worth Rs 21,000 crore in the open market. Globally, investors keenly track what promoters are doing with their shares as it offers clues about what they think about the company's future. Promoter buying may indicate that the stock is undervalued. If they sell, the stock is considered fairly valued, according to experts.
The BSE on Wednesday rolled back some of the stringent measures announced on Monday, aimed at curtailing excessive price moves in smaller stocks, after a sharp sell-off in the broader market triggered protests by traders and investors. The clarification issued midway through the trading session alleviated worries about the impact of strict curbs on small and midcap stocks, which recouped a chunk of their losses on Wednesday, but still ended in the red.
LASTLY,
More caution is warranted in the mid- and small-cap space in the coming days even though the broad market indices saw a sharp turnaround from their lows in Wednesday’s session after the BSE eased its earlier plan to impose strict price movement restrictions. Analysts said those who have made gains in mid- and smallcaps over the last one year should book partial profits and buy more of heavyweight stocks such as Larsen & Toubro, Pidilite Industries, Reliance Industries, HDFC Bank, Siemens, Tata Steel and Bharti Airtel for a 5-8% upside.
NOW Before I go, here is a look at some of the stocks buzzing this morning...
Tata Power and Saudi Arabia's AlJomaih Energy & Water Company have emerged the lowest bidders for three solar projects adding up to 500 MW at the Neemuch Solar Park in Madhya Pradesh.
Credit Suisse sees a 62% upside to Bharti Airtel shares as the telecom sector at a crossroads amid Vodafone Idea’s financial woes. The brokerage said Vodafone Idea’s situation is likely to remain
difficult even if relief measures are announced to help the company.
ITC chairman Sanjiv Puri on Wednesday reiterated that it is not ruling out the possibility of restructuring of different businesses, including demerger of hotels and even listing of ITC Infotech, a subsidiary of the FMCG-to-hotel-to-tobacco conglomerate, on the bourses.
India Cements on Wednesday reported that its net profit on a standalone basis more than doubled to Rs 37.4 crore in the first quarter of FY22 from the same period a year ago.
Do also check out over two dozen stock recommendations for today's trade from top analysts on ETMarkets.com.
That’s it for now. Stay with us for all the market news through the day. Happy investing!
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