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Nov FPI investment may equal aggregate inflows of last 2 years: Shah, Kotak AMC

November 24, 2020 - 8:21pm
NEW DELHI: Market vateran Nilesh Shah says foreign inflows in November might exceed the total inflows that domestic equities market had witnessed in the previous two calendar years.Calendar 2019 witnessed total inflows of Rs 1,01,122 crore while Calendar 2018 saw FPI outflows of Rs 33,014 crore. Net inflows for last two years stood at Rs 68,108 crore. This month, FPIs have already infused Rs 48,278 crore so far."There are 4-5 days left in the month. My feeling is FPIs will invest more money this month than it did last year. Since the market had negative foreign flows a year ago, effectively we would see two years of inflows in just one month," said Shah, Managing Director at Kotak Mahindra Asset Management.When money comes like this, prices get supported, Shah said, adding that FPIs will continue to remain bullish on India amid MSCI and FTSE index recasts.Speaking at a webinar, India Investor Show- 2020, Shah said FPI investments in November jumped significantly since PM Narendra Modi's meeting with foreign investors on November 5, making him believe the rally in the indices is here to sustain.Shah said retail investors are having the last laugh after they bought into the market at March loss, while high networth individuals (HNIs) chose to book profits after the recent rise.Shah said mutual funds have been net sellers of equities in last 3-4 months, not due to their negative view on the market, but the fact that some of the investors such as EPFO and HNIs have redeemed, which in turn has pushed fund managers to sell.On earnings, Shah said September quarter results were amazingly ahead of estimates with Nifty recording its highest ever profit of Rs 1.07 lakh crore, up 17 per cent on a year-on-year basis; that too when sales were down 7 per cent for the quarter.For such a thing, you need to expand your margins. "Earnings have come in due to tight cost control, productivity enhancement and the organised sector grabbing market from the unorganised sector. If such a performance continues, Nifty's forward earnings would move to 23 or 24 times from 30 times at present," Shah said.He said the market is discounting huge inflows from retail and foreign investors, and is hoping that HNIs will eventually jump in. It is discounting that India will not be hit by a second wave of virus as hard as the US and European economies.Shah said some of the companies would benefit while some otherz will suffer in Covid era. He gave the example of early 1990's liberalisation, where old textile mill owners used to say if their businesses are shut down, the whole country would go down the drain. The mood, he said, was quite different when the same question was asked to business managers in IT, pharma or telecom companies. "Those new industry managers," he said, "used to say that we would see a 'new India' and they really talked about tremendous opportunities ahead.""In reality, they both were right. Inefficient companies do die. There were many Sensex companies of the early 1990s that have even ceased to exist today. But IT companies creared tremendous wealth for investors," he said.Economic data talks about the past, but the market talks about the future, Shah said, as he tried to explain why the stock market is at record high levels even as the quarterly GDP has shrunk to historic lows.Nifty50 hit a record high of 13,070 earlier in the day. Latest GDP data suggests the economy contracted 23.9 per cent in the June quarter.
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Asian equities' bull run to continue throughout 2021: UBS

November 24, 2020 - 8:21pm
Mumbai: Even as the Indian equities continued its upward trend on Tuesday, the bull run could continue throughout 2021, a UBS global research said.Underpinned by recovering economies, earnings should boom in 2021. We forecast 30% earning per share growth in Asia ex Japan, 5% ahead of the consensus, on the back of strong revenues and margins, the research said.The equities markets globally have been growing following the hopes of a Covid vaccine. Also investors that had invested in the US dollar as a safe bet during the peak of the pandemic are now exiting the currency. Most global investors have been selling gold and the USD and seem to be rushing towards equities.“We are much less bullish on equity returns – valuations at 15.8x 2021 EPS are already rich. Even taking into account low rates and bond yields our models suggest a fair value forward PE of 13.8x by end next year. With 12% forecast EPS growth in 2022 (still 2x estimated nominal GDP growth), that gives us only 5-6% upside by end next year. Our Japan models point to similar returns over the year. Our end 2021 Index targets are 840 for MSCI Asia ex Japan and 1850 for TOPIX,” Niall MacLeod, Strategist, UBS Securities Asia said.The research added that the some of the countries including Singapore, Indonesia and Malaysia would be able to beat China and Taiwan in 2021 equities growth. “In 2020 markets that saw the biggest negative delta on GDP growth were among the biggest underperformers. We expect this to reverse in 2021 as growth recovers more in south Asia than north Asia with relative valuations more attractive in south than north as well. We are underweight China and Taiwan – both expensive and with less recovery upside than south Asia. Tactically we are still overweight Korea and Japan for now to capture cyclical recovery but are warming to ASEAN. We add Indonesia and Philippines to our existing overweight in Singapore, with Thailand, India, and Malaysia, neutral,” the research said.
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Cohesive national retail policy to help generate up to 30 lakh additional jobs by 2024: CII

November 24, 2020 - 8:21pm
NEW DELHI: A cohesive national retail policy would go a long way in reviving the sector and help generate up to 30 lakh additional jobs in the country by 2024, CII National Committee on Retail Chairman Shashwat Goenka said on Tuesday.Goenka, who is also Head – Retail & FMCG, RP-Sanjiv Goenka Group, while speaking at the CII India Retail Summit 2020, said a thorough national retail policy would help the sector bounce back and grow exponentially in the years to come.As per industry estimates, around 5 crore people are employed in the organised retail sector in India.“Moving forward as the industry revives from its slump, new and emerging models need to be deliberated in order to accelerate the recovery process. The industry is still hampered by the loss in the demand therefore proactive steps need to be taken in order to revive consumer confidence as well," Goenka noted.To address these challenges and bottlenecks faced by the sector across formats, retail industry leaders under the ambit of CII believe that the government should come up with a cohesive model retail policy, he added.“Today more than ever it is imperative to create a necessary environment for conducive growth with the national retail policy. By implementing a cohesive retail policy the government can fuel the sector's growth which can generate up to 30 lakh additional jobs by 2024, apart from creating indirect job opportunities in allied sectors,” Goenka said.He added that research indicated that an investment of just Rs 6,500 crore in retail related infrastructure, including warehousing and cold storage facilities, can create two or three lakh additional job.“The government has always been proactive for the retail sector and has taken several measures to help create a robust environment which has allowed retail to thrive. However now as we recover from the pandemic, a policy-led approach where the industry and government work together cohesively will allow the retail industry to bounce back and grow exponentially in the years to come,” Goenka said.Speaking at the event, Department for Promotion of Industry and Internal Trade Joint Secretary Anil Agrawal said the government is working on the retail policy.“We have a discussion paper (on retail policy) and we are refining it and I am sure inputs from the report launched today will give us some good insights as how do we fine-tune the retail policy,” he said.He added that the government is also conscious that retail and e-commerce need to be looked in an integral manner so that the entire ecosystem grows together.A report titled 'National Retail Policy- To Enable the Next Wave of Retail Growth', was also released during the day long event.The CII-Kearney report details the critical areas that the retail policy needs to pay attention to, across five building blocks including streamlining approvals and compliance mechanisms to improve ease of doing business.It also lays emphasis on improving access to capital, especially for traditional retailers and smaller players, rapid adoption of technology and modernisation by traditional retailers, bridging logistics and supply chain infrastructure gaps, and enhancing labour participation and productivity.Elaborating on the retail industry, Goenka said the sector is expected to double in size in 2021 from 2017.He said that the sector has been majorly impacted due to the ongoing COVID crisis.“Most retail employees who earn minimum wages have been severely impacted. Simultaneously, the business losses incurred have run into crores creating immense pressure on the overall system and in turn for the Indian economy,” Goenka noted.The biggest concern is to find a feasible and affordable manner through which businesses are kept afloat by retaining all the employees, he added.“The COVID pandemic has had an adverse impact on all of the formats but the sector is expected to bounce back and maintain its strong growth momentum in the medium to long term and continue with 9 per cent CAGR in the next few years,” Goenka said.
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Smartphone demand slumps 20-25% since Diwali

November 24, 2020 - 5:19pm
New Delhi: After record breaking sales of smartphones till Diwali, smartphone demand has slumped 20-25% on-month in November so far, retailers and market watchers say. The pan-India offline retail association said they have had a Black Diwali this year anyway with sales falling over 50% on year.Market Intelligence firm Counterpoint is estimating a 20-25% drop in November and further decline in December. Month-on-month sales is usually down straight after Diwali, but the downside this year could be sharper given that peak demand in the lead up to the festival was the highest ever, analysts say.“September usually records the highest shipments as brands begin stocking up for festive sales. But after Diwali sales there is an immediate drop which is close to 20-25%,” said Tarun Pathak, research director at Counterpoint.Re-commerce firm Cashify said that in November, business is already at a third of its peak which was the second day of Flipkart’s Big Billion festival in October. “The general trend in the festive season is that the Diwali sales, backed by discounts and deals, witnesses 2-3 times of usual business and an equal drop immediately after Diwali, and the next month the demand normalises,” said Ashwini Bhadoria, VP - Exchange Programs & Alliances, Cashify. “So talking about Cashify, right now, we are at one-third of business of our peak days, which was the second day of the Flipkart Big Billion Sale,” he said Top brands including Xiaomi, Vivo and Realme have all reported their highest ever Diwali sales this season while Apple recorded its highest ever shipments in the July-September period even before the launch of its flagship.“Mainline retailers were anyway witnessing Black Diwali this year with sales having declined by 50%. October was the worst month for us, there was some pick up in November because of Diwali but now its again heading towards the worst,” said Arvinder Khurana, President of mobile retailers association which represents 150,000 stores pan-India.He said that the biased support of smartphone brands, who are channeling stocks to Amazon and Flipkart is the reason for a 50% drop and even banks are responsible, having given 10% instant cashback exclusively to e-tailers.
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AstraZeneca must prove claim to cheapest COVID-19 vaccine: MSF

November 24, 2020 - 5:19pm
BRUSSELS: AstraZeneca must prove its claim that its potential COVID-19 vaccine has the lowest price of the main candidates so far, non-governmental organisation Medecins Sans Frontieres (MSF) said on Tuesday, urging the company to make public its supply contracts.The British firm said on Monday its COVID-19 vaccine was 70% effective in pivotal trials and could be up to 90% effective, giving the world's fight against the global pandemic a third new weapon that can be cheaper to make, easier to distribute and faster to scale-up than rivals.AstraZeneca has said it will not profit from sales of its vaccine, the price of which has been set at about $3 per dose, against at least four times more for other candidates."MSF welcomes AstraZeneca's commitment to sell the vaccine at a 'no-profit' price during the pandemic, but the reality is that it's an empty promise unless we're able to substantiate these important claims with data," said Roz Scourse of medical group MSF, also known as Doctors Without Borders.The organisation urged AstraZeneca to disclose the contracts signed with governments for its vaccine, under which there could be clauses that limit the price until the company declares the end of the health emergency, which could be as early as July, according to media reports cited by MSF."This means that, after July 2021, AstraZeneca could charge governments and other purchasers high prices for a vaccine that was entirely funded by the public," the organisation said, adding the company had received over $1 billion of public funding for its COVID-19 vaccine candidate.AstraZeneca had no immediate comment on the matter.The company has said a COVID-19 vaccine needs to be available globally and accessible to all who need it, and has expressed its support for a procurement scheme co-led by the World Health Organization designed to secure rapid and fair global access to COVID-19 vaccines.
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Elon Musk overtakes Bill Gates to grab world’s second-richest ranking

November 24, 2020 - 5:19pm
By Devon PendletonElon Musk’s year of dizzying ascents hit a new apex Monday as the Tesla Inc. co-founder passed Bill Gates to become the world’s second-richest person.The 49-year-old entrepreneur’s net worth soared $7.2 billion to $127.9 billion, driven by yet another surge in Tesla’s share price. Musk has added $100.3 billion to his net worth this year, the most of anyone on the Bloomberg Billionaires Index, a ranking of the world’s 500 richest people. In January he ranked 35th.His advance up the wealth ranks has been driven largely by Tesla, whose market value is approaching $500 billion. About three-quarters of his net worth is comprised of Tesla shares, which are valued more than four times as much as his stake in Space Exploration Technologies Corp., or SpaceX.Musk’s milestone marks only the second time in the index’s eight-year history that Microsoft Corp. co-founder Gates has ranked lower than number two. He held the top spot for years before being bumped by Amazon.com Inc. founder Jeff Bezos in 2017. Gates’s net worth of $127.7 billion would be much higher had he not donated so prodigiously to charity over the years. He has given more than $27 billion to his namesake foundation since 2006.With Monday’s move, Musk unseats an occasional verbal sparring partner in Gates, who the Tesla billionaire has ridiculed on Twitter for, among other things, having “no clue” about electric trucks. The two have also traded barbs over Covid-19. Gates, whose charitable foundation is one of the preeminent bodies backing vaccine research, has expressed concern over Musk’s stated suspicion of pandemic data and embrace of certain conspiracy theories.The year has been a lucrative one for the world’s richest people. Despite the pandemic and widespread layoffs that have disproportionately affected the world’s working class and poor, the members of the Bloomberg index have collectively gained 23% -- or $1.3 trillion -- since the year began.
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Wall St is itching to unfollow @realDonaldTrump

November 24, 2020 - 2:18pm
In the closing weeks of the presidential campaign, President Donald Trump began telling his supporters that if former Vice President Joe Biden was elected, market mayhem would follow.“If Biden wins,” he told a cheering crowd at an airport near Reading, Pennsylvania, on Halloween, “you’re going to have a stock market collapse the likes of which you never had.”That didn’t happen. Instead, the stock market has notched record highs since Biden emerged as the winner, as investors celebrated both the prospect of an end to election-year political uncertainty as well as progress on COVID-19 vaccines. And as Inauguration Day approaches, Trump’s grip on the collective psyche of investors appears to be receding, too.Investors of all political persuasions say they are ready to turn the page on what was a profitable but extraordinarily politicized and stressful period for the financial markets, where they had to contend with an unpredictable force whose pronouncements frequently moved stock prices. For the most part, investors supported Trump administration policies; it was the president’s unpredictable tweeting they found hard to stomach. In the past four years, Trump used his bully pulpit to praise and berate companies, escalate a trade war with China and signal the economy’s strengths before official announcements. In the process, his Twitter account became a singular source of market volatility.“I just want my life to go back to normal,” said Barry Ritholtz, a money manager in New York who did not vote for Trump. “And I don’t mean pre-pandemic normal. I mean pre-golden-escalator-to-hell normal,” he said — a reference to Trump’s famous 2015 ride down the escalator in Trump Tower, at the end of which he announced his candidacy. “I just want the noise level to quiet down.”The weekend Biden became president-elect, Ritholtz went to Twitter with one goal in mind: unfollow as many accounts in the Trump orbit as possible. In recent years, Ritholtz’s Twitter timeline had grown crowded with accounts — such as those of Trump’s children or press officers — that he felt he had no choice but to follow as he managed roughly $1.7 billion in client assets.Like No Other PresidentU.S. presidents and political leaders don’t often train their focus on individual companies — at least in public. In 1962, concerned about rising inflation, President John F. Kennedy publicly excoriated steel executives for planned price increases. At a news conference in which he singled out U.S. Steel by name, Kennedy said those executives showed “utter contempt” for the American public. The episode, which was followed by threats of antitrust investigations of the industry, spooked investors and helped set off a significant market slump.But in recent decades, even as stock ownership became much more widespread, presidents such as Ronald Reagan and Bill Clinton — who both presided over booming stock markets — shied away from direct commentary on companies or markets. Probably, they calculated that the political reward of closely associating themselves with a bull market wasn’t worth the risk of being blamed for a bust that could — and in both cases did — come.Not Trump. Almost from the moment he was elected, he adopted the stock market as a kind of real-time, multitrillion-dollar barometer of his own performance. Since taking office, he has sent tweets or retweets with stock market references more than 200 times, and made scores of statements spotlighting the market’s rise under his administration.“Broke all time Stock Market Record again today,” he wrote on Twitter last December. “135 times since my 2016 Election Win. Thank you!”When stocks have slumped, the president publicly framed falling prices as the work of those he considers political opponents, including the Federal Reserve, congressional Democrats and the news media. He has publicly threatened and castigated major American companies, facing off with Amazon.com over its tax payments and deals with the U.S. Postal Service; with General Motors, Ford and Carrier — then a subsidiary of United Technologies — over plans to shutter plants; and with Lockheed Martin and Boeing over the costs of fighter jets and replacements for Air Force One.Trump has disclosed market-moving information after private discussions with executives and appeared to hint at upside surprises from economic data that his office was privy to. He has demanded that the Fed cut interest rates to prop up the market. He has treated serious policy developments — such as the twists and turns of his trade war with China — with his typical flair for showmanship, unveiling his changing positions in a hail of unexpected tweets that sent share prices tumbling on multiple occasions.“He is very much an outlier in terms of his focus on the stock market,” said B. Dan Wood, a professor of political science at Texas A&M University, who has compiled a database of presidential statements on the economy. “I think no former president and likely no future president will emphasize the stock market as much as Trump has,” he said.Trump Tweets, Wall Street WeepsTrump’s focus on the stock market prompted Wall Street’s money managers, bankers, analysts, investment advisers and other professionals — who usually rank day-to-day political developments low on the ladder of market-moving concerns — to follow the president’s missives on Twitter, either by joining the platform or getting briefed on it regularly.“There was just so much more material in this administration,” said Kristina Hooper, chief global market strategist at investment management firm Invesco, who has been watching financial markets since 1995. “We just didn’t hear as much from past presidents.”The ride was rocky from the start. On the night Trump won in 2016, stock futures plunged 5% as investors unwound bets premised on a Hillary Clinton presidency. But it didn’t take long for a rebound; once investors recovered from the shock of his victory, they saw that unified Republican control in Washington all but assured a giant tax cut for corporations and wealthy individuals.The S&P 500 climbed 19.4% in 2017, with Trump signing the long-awaited tax cuts into law in December. Most analysts cite the tax cut as the administration’s strongest credible claim to credit for the rise in stocks.But by early 2018, Trump’s approach to policymaking was having a far different effect. Markets consistently slipped after Trump began to ratchet up talk of higher tariffs on global trading partners such as China and Europe. Stocks slipped 10% in that year’s first quarter and fell nearly 20% in the fourth quarter.On several occasions, Twitter messages from the president tipped a previously positive market into significant declines. On Dec. 4, 2018, stocks tumbled more than 3% after Trump declared himself a “Tariff man” — just two days after U.S. and Chinese officials negotiated a truce in the trade war between the two countries.Throughout 2019, sporadic Twitter messages from Trump about the trade war continued to rattle investors, even though the market gained 29% over the year as the Federal Reserve abandoned plans to raise interest rates.Even in the middle of the coronavirus pandemic this year, the president’s messages on Twitter continued to unsettle investors. For instance, on Oct. 6, when he abruptly announced on Twitter that he was pulling out of negotiations for a fiscal stimulus with congressional Democrats, stocks swung to a loss.Where Do Markets Go Now?Overall, stock investors have done well during Trump’s four-year term, even though there’s significant debate about whether the market’s strong performance has come because of or despite his presence. Including dividend payments, investors that own the S&P 500 stock index are up more than 70% between Election Day in 2016 and Nov. 3, when Trump was defeated.The answer is likely both. The uncertainty and market shocks that came from his freewheeling approach to making and announcing policies may have been a headwind for stocks, but his steep tax cuts almost certainly were a boon to markets.“The stock market would have been even stronger if he wasn’t in a trade war with China,” said Jason DeSena Trennert, chief investment strategist at Strategas Research Partners and a supporter of Trump. “But otherwise, I think it’s hard not to give him a lot of credit for the market.”And while professionals debate the direct effect of Trump’s extraordinary relationship with markets, his outsize presence has increasingly linked politics and markets in the minds of everyday investors. “Clients, for sure, have brought up politics more in the last four years than in the previous 30 years of my career,” said Paul Schatz, who manages roughly $90 million in assets for clients largely in New York, Connecticut and Florida.But now, as the country prepares for the transition to a Biden administration, investors almost certainly won’t have to worry about an out-of-the-blue tweet from the president toppling the markets. Although some worry that Trump could have more market-moving surprises up his sleeve before he leaves town, others expect that the markets will feel very different come Jan. 20.“I think investors, market watchers might get a little bored,” Hooper, of Invesco, said of a Biden presidency. “I don’t know if they’ll complain. But they might get a little bored.”
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Non-performing loans in Indian banking sector to rise in next 12-18 months: S&P

November 24, 2020 - 2:18pm
New Delhi: Non-performing loans in the Indian banking sector is likely to witness an uptick and may shoot up to 11 per cent of gross loans in the next 12-18 months, S&P Global Ratings said on Tuesday. It said forbearance is "masking" problem assets for Indian banks arising from COVID-19 and the financial institutions will likely have trouble maintaining momentum after the proportion of Non-performing loans (NPL) to total loans declined consistently so far this year. "While financial institutions performed better than we expected in the second quarter, much of this is due to the six-month loan moratorium, as well as a Supreme Court ruling barring banks from classifying any borrower as a non performing asset," S&P Global Ratings credit analyst Deepali Seth-Chhabria said. In its report titled "The Stress Fractures In Indian Financial Institutions", S&P said with loan repayment moratoriums having ended on August 31, 2020, NPLs in the banking sector will likely shoot up to 10-11 per cent of gross loans in the next 12-18 months, from 8 per cent on June 30, 2020. According to S&P, the banking system's credit costs will remain elevated at 2.2-2.9 per cent this year and next. "Resumption of economic activity, government credit guarantees for small to mid-size enterprises, and buoyant liquidity is helping to limit stress. Our NPL estimates are lower than previous but we are still of the view that the sector's financial strength will not materially recover until fiscal 2023 (ended March 31, 2023)," it said. According to S&P, 3-8 per cent of loans could get restructured. Banks and non-bank financial companies (NBFCs) have also been strengthening their balance sheets and bolstering their equity bases. Banks have also been building reserves and creating excess COVID provisions, which in our view should help them smooth the hit from COVID-related losses. "For NBFCs we rate, performance has been improving. Like with banks, collections have surged for NBFCs. Top-tier NBFCs are benefiting from surplus system liquidity, as indicated by a sharp reduction in risk premiums. Weaker finance companies, however, have faced higher risk premiums. We expect such polarisation to persist in 2021," S&P added.
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Goa government issues Rs 156-crore demand notice to JSW Steel

November 24, 2020 - 2:18pm
PANAJI: The Goa government has issued a demand notice to JSW Steel Ltd, handling coal at Mormugao Port Trust (MPT), to pay Rs 156.34 crore in the form of Goa Rural Improvement and Welfare Cess, within a fortnight, for transportation of coal. In a demand notice issued on November 9, 2020, copy of which was released on Monday, the Assistant Director of Transport has asked JSW Steel to pay Rs 156.34 crore to the state within 15 days. When contacted, JSW Steel declined to comment. The notice said that the company representative may face punishment with imprisonment of two years or fine of Rs 25,000 if the cess is not paid. The government has said that the company was served a show cause notice on September 4, 2020 for non-payment of cess under Goa Rural Improvement and Welfare Act, 2000 for transportation of coal done through Mormugao Port Trust to the plant site. The company representative was asked to remain present before the Transport Department on September 16, 2020. The notice mentions that the company in their reply on October 13, 2020 said that due to COVID-19 outbreak minimum staff reported on duty. The company had said that it will report back to the state government as soon as COVID-related restrictions are lifted by the government, but they failed to do so.
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TCS, Infy, Lupin, Zee among 24 stocks looking strong for a rally

November 24, 2020 - 2:18pm
NEW DELHI: As Nifty50 hit the psychologically important 13,000 mark for the first time, at least two dozen stocks in the broader market – including four IT biggies and a handful of pharma stocks – are looking strong on the technical charts, as suggested by moving average convergence divergence, or MACD.The momentum indicator signalled bullish crossovers — a sign of bullish undertone — in 24 counters, hinting at possible upsides in the days ahead.The list included IT majors TCS, Infosys, Wipro and HCL Technologies, besides pharma names Lupin, Ipca Laboratories, Laurus Labs and Vivimed Labs. Zee Entertainment, Torrent Power, Infibeam Avenues, CG Power, Abbott India, Dalmia Bharat Sugar and Kitex Garments were among other stocks sending out bullish signals on their daily charts. 79383211 79383224MACD is known for signalling trend reversals in traded securities or indices. It is the difference between the 26-day and 12-day exponential moving averages. A nine-day exponential moving average, called the ‘signal line’, is plotted on top of the MACD chart to indicate ‘buy’ or ‘sell’ opportunities.When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa.There are 14 stocks showing bearish trends. They included Ashok Leyland, Axis Bank, TVS Motor, City Union Bank, Salasar Technologies and Deccan Cements, among others. 79383192The MACD indicator should not be seen in isolation, as it may not be sufficient to take a trading call, just the way a fundamental analyst cannot give a ‘buy’ or ‘sell’ recommendation using a single valuation ratio.This is because MACD is a trend-following indicator. Though traders can increase the sensitivity of the MACD by using shorter-term moving averages for computing MACD (e.g. 5-day and 12-day moving averages), the lag effect will still be there. Traders should make use of other indicators such as Relative Strength Index (RSI), Bollinger Bands, Fibonacci Series, candlestick patterns and Stochastic to confirm an emerging trend.On Tuesday, Nifty50 traded 1 per cent higher near the 13,050 mark.“On the daily time frame, Nifty continues to display a very strong trend, as the ADX remains at elevated levels and the MACD is in the ‘buy’ mode. When Nifty is in a trend, avoid selling short for the time being. A break above the 13,000 level should propel the index higher towards 13,084 level. There is a strong likelihood that Nifty will trade higher going into the last three days of the F&O series,” said independent analyst Manish Shah.Shrikant Chouhan of Kotak Securities advised traders to go long on Nifty50 above 12,970 level for targets of 13,100 and 13,180 levels. “Below 12,800 level, the index would gradually fall to 12600 level,” he said.Understanding MACD79383277A close look at the stock chart of TCS shows whenever the MACD line has breached above the signal line, the stock has shown an uptrend and vice versa. On Tuesday, the scrip traded at Rs 2,736, up 0.43 per cent.
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NSE declares Karvy Broking as defaulter, expels from membership

November 24, 2020 - 2:18pm
The National Stock Exchange (NSE) terminated the brokerage membership of scam ridden Karvy Stock Broking with effect from Monday. The development comes after the exchange conducted a detailed probe into the Karvy matter that spanned for nearly a year. People privy to the development said the move was part of a coordinated effort between various market institutions and other exchanges too are expected to come up with similar orders against Karvy in the next few days. Karvy also holds a share brokerage license from BSE and a commodity trading license from MCX.“All members are hereby informed that the following trading member(Karvy) has been expelled from the membership of the Exchange under Rules 1 and 2 of Chapter IV of the NSEIL Rules and has been declared as a defaulter,” said a press statement by NSE.Last year, market regulator Securities and Exchange Board of India(Sebi) had passed an order against the Hyderabad-based brokerage asking it not to take up any fresh clients. The order came after Sebi and exchanges received a lot of complaints from the clients of Karvy alleging that the brokerage had misappropriated their securities to avail loans.As of December 2019, there were around 3.3 lakh clients for Karvy. Amongst them, securities of around 2.3 lakh clients were returned in December itself following an order by Sebi. Subsequently, the exchange is learnt to have compensated a bulk of the remaining investors through liquidation of Karvy’s market assets and through investor protection and education fund (IPEF).“All the small investors who had balances up to Rs 30,000 have been fully compensated. The total dues of Karvy to the clients was around Rs 2,500 crore of which Rs 2,000 crore has been paid back to the investors,” said a person privy to the development.The rest of the amount is pending due to litigation in the Securities Appellate Tribunal (SAT). A clutch of banks had moved the tribunal staking claim over the securities of Karvy since the brokerage had availed loans from them. “Once a final order is passed in the matter by SAT, another Rs 300 crore could be released to Karvy investors. The process could take another few months but every investor will be compensated,” said another person with the knowledge of the matter.Sebi is already learnt to be in the process of formulating ways to recover dues from Karvy. The person cited above added that Sebi has powers to order freezing of bank accounts of both the brokerage and its top executives.
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The cost of Trump's temper tantrums

November 24, 2020 - 11:18am
We all knew that Donald Trump would react badly to defeat. But his refusal to concede, the destructiveness of his temper tantrum and the willingness of almost the entire Republican Party to indulge him have surpassed even pessimists’ expectations.Even so, it’s very unlikely that Trump will manage to overturn the election results. But he’s doing all he can to wreck America on his way out, in ways large and small. Among other things, his officials are already trying to sabotage the economy, setting the stage for a possible financial crisis on Joe Biden’s watch.To the uninitiated, the sudden announcement by Steven Mnuchin, the Treasury secretary, that he’s terminating support for several emergency lending programs created back in March might not seem like that big a deal. After all, the financial markets aren’t currently in crisis. In fact, defying Trump’s prediction that “your 401(k)s will go to hell” if he were to lose, stocks have risen substantially since Biden’s win.Furthermore, much of the money allocated to those programs was never actually used. So what’s the problem?Well, the Federal Reserve, which administers the programs, has objected strenuously — for good reason. You see, the Fed knows a lot about financial crises and what it takes to stop them — and Mnuchin is depriving the nation of tools that could be crucial in the months or years ahead.In the old days, what we now call financial crises were generally referred to as “panics” — like the Panic of 1907, which was the event that led to the Fed’s creation. The causes of panics vary widely; some have no visible cause at all. Nonetheless, they have a lot in common. They all involve a loss of confidence that freezes the flow of money through the economy, often with dire effects on growth and jobs.Why do such things happen? Panics don’t necessarily reflect mob psychology, although that sometimes plays a role. More often we’re talking about self-fulfilling prophecy, in which individually rational actions produce a collectively disastrous result.In a classic bank run, for example, depositors rush to get their money out, even if they believe that the bank is fundamentally sound, because they know that the run itself can cause the institution to collapse.Which is where public agencies like the Fed come in. We’ve known since the 19th century that such agencies can and should lend to cash-starved players during a financial panic, stopping the death spiral.How much lending does it take to stop a panic? Often, not much at all. In fact, panics are often ended simply by the promise that cash will be provided if needed, with no need to actually write any checks.Back in 2012 there was a runaway financial crisis in much of southern Europe. Countries like Spain saw their ability to borrow collapse and the interest rates on their debt soar. Yet these countries weren’t actually insolvent; Spain’s fiscal position was no worse than that of Britain, which was able to borrow at very low interest rates.But Spain, which doesn’t have its own currency — it uses the euro — was the subject of a self-fulfilling panic attack, as investors fearing that it would run out of cash threatened to provoke the very outcome they feared. Britain, which can print its own money, was immune to such a crisis.In July 2012, however, Mario Draghi, president of the European Central Bank — the Fed’s counterpart — promised to do “whatever it takes” to save the euro, which everyone interpreted as a commitment to lend money to crisis countries if necessary. And suddenly the crisis was over, even though the bank never did end up doing any lending.Something similar happened here this past spring. For a few weeks in March and April, as investors panicked over the pandemic, America teetered on the edge of a major financial crisis. But the Fed, backstopped by the Treasury, stepped up with new programs offering to buy assets like corporate bonds and municipal debt. In the end, not much of the money was used — but the assurance that the money was there if needed stabilized the markets, and the crisis faded away.So far, so good. But in case you haven’t noticed, the pandemic is back with a vengeance; hospitalizations are already much higher than they were in the spring, and rising fast.Maybe the new coronavirus surge won’t provoke a second financial crisis — after all, we now know that a vaccine is on the way. But the risk of crisis hasn’t gone away, and it’s just foolish to take away the tools we might need to fight such a crisis.Mnuchin’s claim that the money is no longer needed makes no sense, and it’s not clear whether his successor will be easily able to undo his actions. Given everything else that’s happening, it’s hard to see Mnuchin’s move as anything but an act of vandalism, an attempt to increase the odds of disaster under Trump’s successor.The thing is, until this latest move, it looked as if Mnuchin might be one of the few officials who managed to emerge from their service under Trump without completely destroying their reputations. Well, scratch that: He’s joined the ranks of Trump loyalists determined to trash the nation on their way out the door.
Categories: Business News

Baseline Ventures wins arbitration, Volleyball Federation asked to pay Rs 4 crore

November 24, 2020 - 11:18am
MUMBAI: Sports marketing firm Baseline Ventures, which organised the first season of the Pro Volleyball League in February 2019, has won the wrongful termination case against the Volleyball Federation of India (VFI).Justice (Retd) K Kannan, the Madras high court-appointed arbitrator, has awarded Rs 4 crore plus interest as damages and legal fees to Baseline Ventures in its dispute against VFI for the ‘wrongful termination’ of the 10-year contract for Pro Volleyball League.VFI had terminated the agreement with Baseline Venture on November 18th, 2019, alleging financial irregularities and manipulation by the firm. After almost 10 months of arbitration, Kannan ruled against VFI stating that there was no ground to terminate Baseline’s contract, and moreover, the federation did not follow due process to terminate the contract.The arbitrator has also dismissed all allegations made by VFI against Baseline pertaining to the breach of contract.In its order, a copy of which was accessed by ET, the arbitrator noted that if VFI had the players interest in mind and wanted to foster the sport as a popular entertainment, it ought to have known that closing all options and terminating the agreement was too big a price to pay. “In the light of my finding that the respondent’s (VFI) termination of contract was not justified, the claim for damages estimated based on initial projections is not tenable. The respondent killed the goose that laid golden eggs,” Kannan said while dismissing the counter claim of Rs 14.93 crore made by the VFI against Baseline Ventures.“This judgement is a total vindication of the fact that the VFI had absolutely no grounds to terminate the contract after a successful season,” said Joy Bhattacharjya, VP at Baseline Ventures, who led the first edition of the league as its CEO. “It’s important that they are held accountable not just to us, but to all the volleyball players and coaches who were the most impacted by their wilful actions. This is a victory for fair play in Indian sport.”The arbitrator has also asked Baseline Ventures to hand over the IPR of the Pro Volleyball League to VFI.Tuhin Mishra, co-founder and MD, Baseline Ventures, said, “When we started legal proceedings, we had the option of whether we wanted our rights to conduct and market the league reinstated apart from the damages which we were looking at.”However, he added that given the “capricious nature” of VFI’s actions over the past year, the company had absolutely no confidence that this nature of event would not happen again considering the “blatant display of malafide intent” on the federation’s part. “So we voluntarily gave up the option of reinstatement of our rights even before the proceedings. We are happy to hand over the logo rights to VFI, we just want our damages to be paid before any commercial agreements are executed by VFI,” Mishra said.VFI had cited a report by one of the big four audit and consulting firms, which it claimed corroborated the manipulations of the accounts by Baseline and VFI had used that report supposedly to terminate the agreement with Baseline. However, the firm in question later backtracked and forwarded an application to the arbitrator to eschew the report on the ground that it was meant to be confidential by the terms of their engagement by the respondent (VFI). There had been a disclaimer that it was not meant to be an auditor’s report and they had only examined whatever documents were presented by the respondent and it’s views did not have any legal standing. The firm had not even consulted Baseline while verifying the documents which VFI had given them. Based on an earlier judgement, VFI had to pay up Rs 2.25 crore to Baseline, which was received by the company in February 2020.
Categories: Business News

Biological E to start phase-III trials by January, license vaccine by summer

November 24, 2020 - 11:18am
Hyderabad: Hyderabad-based Biological E, which recently obtained the drug regulator’s nod to start phase I and II clinical trials of its Covid-19 vaccine candidate, hopes to enter into phase-III clinical trials by January-end and license the vaccine by summer.Disclosing this in Hyderabad on Monday, managing director Mahima Datla said the company is currently evaluating four different formulations depending on different antigen strengths in the phase I-II combined studies.Without having to wait to do a dose finding study, Biological E, with preliminary immunogenicity data from 400 people by February, will enter into phase-III trials where about 30,000 people will participate.“We just began our phase I-II study and in our case we combined the phase I and II because we wanted to directly evaluate four different formulations depending on different antigen strengths,” said Mahima. “This data is expected to be available by the end of January.”The Drugs Controller General of India had last week allowed Biological E to start phase I-II trials of Covid-19 vaccine candidate which includes an antigen that was in-licensed from BCM Ventures, an integrated commercialisation team of Baylor College of Medicine in Houston.Biological E had also in-licensed an advanced adjuvant from the US-based vaccine focused pharmaceutical firm Dynavax Technologies Corporation. “The good news is from then (after phase I-II trials by January-end) we will directly go to a phase III study and we won’t need to do a dose finding study again. We would have finished that,” said Mahima.
Categories: Business News

Quess Corp, a top private employer, sees India jobs rising to pre-Covid levels

November 24, 2020 - 11:18am
Jobs are returning in India as the economy recovers from lockdown-related losses, according to the head of a top staffing firm.Quess Corp., which claims to be India’s largest private-sector employer providing staffing services to companies, saw its workforce rise in October for the first time since the coronavirus outbreak. Its numbers had dropped by 55,000 to 325,000 after Prime Minister Narendra Modi imposed a vast and sudden lockdown in March.“We are seeing a rebound definitely in the employment market,” Ajit Isaac, Quess chairman, said in an interview to Bloomberg TV Monday. “We expect to finish this year close to where we were at the beginning of the year. That is an indication of how the economy is going. I think the worst is over.”A record 122 million people went jobless in April due to Modi’s shelter-at-home rules, which probably tipped India into an unprecedented technical recession though high-frequency indicators now signal a revival. The government is due to publish gross domestic product data for July-September on Friday and the central bank, which has slashed interest rates, is scheduled to review policy next week.India’s unemployment rate eased to 6.98% in October from as high as 23.5% in April, according to private research firm Centre for Monitoring Indian Economy. Isaac echoed the figure, saying the rate will return to pre-Covid levels of 6%-7% with the construction and real estate sectors fueling demand for jobs.He added that almost 60 million people have returned to their work spots, or half of the internal migrants who had left the cities and trudged back to their village homes when Modi announced the strict lockdown.Key Numbers:Indian workforce comprises 480 million peopleRoughly 220 million of these work on farmsAnother 120 million comprise internal migrantsData from Quess“Almost 90% of the companies that had job cuts are now going back to pre-Covid level salaries,” he said. “We are in for a period of significant growth in India in the next four quarters.”--With assistance from Anand Menon.
Categories: Business News

Apollo Global enters race for BPCL stake

November 24, 2020 - 8:16am
Mumbai | New Delhi: Apollo Global Management has submitted an expression of interest (EoI) for the government’s 53 per cent stake in Bharat Petroleum Corp Ltd (BPCL), said people with knowledge of the matter. The move underscores the growing appetite of the Wall Street buyout group founded by Leon Black for big-ticket deals in India after having recently dissolved its joint venture platform Aion Capital with ICICI Venture. Apollo will compete with Anil Agarwal’s Vedanta that has also confirmed its participation at this stage. It’s likely to partner with a global energy major ahead of its final offer, said the people cited above. Potential bidders have 45 days after submitting the EoI to put together a consortium. Bid dates are not yet clarified but are expected in March 2021. Apollo has a dedicated natural resources investment franchise with $5 billion of assets under management, owning oil and gas assets predominantly in the Americas. Its flagship PE fund had pipped Reliance Industries Ltd for Lloyndell Bassel in 2010, eventually making a $10 billion profit out of the deal, the biggest in the Wall Street history by a buyout group.At Monday’s closing price of Rs 394.55 on the BSE, the government’s stake in BPCL is worth Rs 45,276 crore. 79380149Open Offer MustApart from a control premium, any acquirer will have to make an open offer for 26 per cent from the public — worth Rs 22,252 crore at current prices.Apollo and the Department of Investment and Public Asset Management (Dipam) didn’t respond to queries.In September, Apollo forged a $5.5 billion real estate investment partnership with Abu Dhabi National Oil Company (ADNOC), one of the big Gulf oil companies that was originally expected to join the race for BPCL.Government officials handling the sale have not revealed the identities of investors that submitted EoIs by the November 16 deadline, only saying they had got three to four from global funds and a major foreign company. Pan-India FootprintFor funds like Apollo, BPCL’s pan-India footprint of 17,138 petrol pumps, 6,151 LPG distribution agencies and 61 out of 256 aviation fuel stations, along with the associated infrastructure of pipelines, depots and storage, is a bigger attraction than its 35.3 million tonnes of refining capacity, especially when investors are unwinding fossil fuel exposure globally, analysts said. BPCL is India’s second-largest oil marketing company with standalone domestic sales volume of over 43.10 million tonnes and a market share of 22 per cent in FY20. It’s also the country’s sixth-largest company by sales.Even if oil demand in India peaks, oil marketing companies such as BPCL will remain value accretive, said Elara Capital analyst Gagan Dixit, in a market with high entry barriers. Demand for crude is expected to rise slowly until it peaks by 2030, according to BP Energy Outlook. But, at least for the next decade, it’s going to continue upward in the third-largest oil consuming market.“With private investors, more focus could be on high demand market and differential pricing, which could improve BPCL’s gasoline and diesel margin by ₹3,000 crore annualised Ebitda,” Dixit said. “Similarly, BPCL could minimise output of low-margin products like LPG and increase output of high-margin gasoline and diesel. As a private refiner, it could also improve its gross refining margins (GRM) by at least $1/barrel or Rs 2,000 crore annualised Ebitda through lower crude cost.”Bigger BetsOver the years, Apollo has been taking bigger bets in India, bidding for distressed assets such as Monnet Ispat, which it acquired through the bankruptcy process with JSW Group. Apollo has had a rollercoaster 2020 — a $2.3 billion loss this summer followed by $1 billion profit in the next quarter ended June, which also saw nearly $100 billion getting added to its investment war chest following a headline deal with insurer Prudential and the launch of a $12 billion credit fund with Mubadala. But the recent third quarter has been disappointing with an 8% drop in distributable earnings.
Categories: Business News

3 Covid vaccines’ efficacy higher than flu shots

November 24, 2020 - 8:16am
Mumbai: The three potential Covid-19 vaccines that have released Phase-3 trial results have shown very high efficacy rates compared to most vaccines that are under use and specifically in comparison with the flu vaccines.While Moderna and Pfizer have reported over 95% efficacy, the AstraZeneca-Oxford vaccine has a rate of up to 90% and an average of 70.4% if results of two different dosing regimes are combined.In contrast, the Ebola vaccine efficacy in trials was 50% while that for most flu vaccines it is around 65%. Polio, Measles, tetanus vaccines have an efficacy of around 70%.Anthony Fauci, top infectious disease expert in the US, had said the over 90% efficacy of Pfizer vaccine candidate ‘is just extraordinary’ and would have a “major impact” going ahead.Efficacy of a vaccine measures its success in preventing the disease in large scale trials in a group given vaccine compared to the group that received a placebo. A vaccine's effectiveness, on the other hand, is known after many years of use in the general population.Most vaccines for respiratory viruses are not 100% effective, but an efficacy of over 50% is seen enough to stop a pandemic by providing a substantial herd immunity.Efficacy of over 50% for these vaccines, if approved by regulators after seeing all the evidence, should ensure rapid progress against Covid-19 if they are rolled out quickly and cover a substantial population. On Monday Astrazeneca-Oxford announced that their Covid vaccine ChAdOx1 nCoV-2019, is effective at preventing COVID-19 infection and offers a high level of protection.The company said that Phase 3 interim analysis of 131 Covid-19 cases indicated that the vaccine was 70.4% effective when combining data from two dosing regimens.The first was two dose regimen which showed a 63% efficacy and the second trial where the doses were halved in first dose and later given a standard second dose after a 52 day gap showed that the vaccine showed 90% efficacy, giving a combined efficacy of 70.4%Moderna and Pfizer candidates displayed efficacy of over 95%.“Even though the headlines say 70% efficacy the subgroup of 3000 participants where we gave half dose as a primer and the second shot as full dose showed 90% efficacy,” said Andrew Pollard, Director of the Oxford Vaccine Group and Chief Investigator of the Oxford Vaccine Trial.“The vaccine can be stored at a usual fridge system which makes it easy to be distributed across the world.”Since the vaccine works best as half and full dose, a higher supply would be available as manufacturers had planned the vaccine as a double shot one.
Categories: Business News

States told to prioritise groups for vaccination

November 24, 2020 - 8:16am
New Delhi: The central government has asked the states to gear up for national-level vaccination against Covid-19 by identifying people most in need and getting personnel and logistics ready.“A mandate on vaccine preparation and distribution has been shared with the states,” a senior government official said. The states have been asked to prioritise groups to be vaccinated first, based on two objectives — protection of the vulnerable and reduction of mortality.“The states are preparing the lists, identifying the vulnerable and people who are exposed to the virus,” the official said.The Centre has directed each state to constitute a steering group to be chaired by the chief secretary and smaller district-level groups to be headed by the district magistrates. The possibility of rolling out a vaccine early next year has heightened logistical concerns.The cold chain to store and transport vaccines is being strengthened and arrangements are being made to ensure availability of vials and syringes. “Attempts are going on, engaging with the domestic industry at this point in time,” added the official.The ministry has also developed digital content to train and orient vaccinators, detailing how they should administer the vaccine and how to report any adverse event after vaccination.A digital platform called eVIN (Electronic Vaccine Intelligence Network), which, among other things, tracks vaccine procurement and generates alerts when stocks are about to run out, is being enhanced with a Covid-19 module to CoVIN. This will enable the system to digitally track who was vaccinated for Covid-19, where and when are they scheduled to receive the next dose. The CoVIN system will generate digital certificates as proof of vaccination that can be stored on mobile phones or in the DigiLocker, a free government online facility.While there are several vaccine candidates in various stages of development, three are in human clinical trials and two are poised to enter human clinical trials. The promising vaccines include those developed by the University of Oxford and AstraZeneca, which is being manufactured by the Serum Institute of India, ZyCov-D from Zydus, Covaxin from Bharat Biotech and the mRNA candidate by Gennova.
Categories: Business News

Why HPCL buyback and not NTPC’s made Street happy

November 24, 2020 - 8:16am
Mumbai: State-owned companies HPCL and NTPC announced their share buybacks around the same time but their share prices have seen divergent behaviour since then. While shares of oil marketer HPCL have rallied 16 per cent following the announcement early in November, thermal power generator NTPC is up 4 per cent. Analysts said this is because of the different routes that both the companies have taken to buy back shares from public investors.HPCL’s buyback is being done through the open market over six months, while NTPC’s buyback is through the tender offer process. Analysts said NTPC has investors who are not tendering shares in the offer, as reflected in the acceptance ratio of 16-20 per cent, as the buyback price is lower than market expectations.HPCL could mop-up from the secondary market over 13 per cent of the shares available with public shareholders over a six-month window at Rs 250 per share as against the current market price of Rs 214. NTPC is buying back shares at Rs 115, a 25 per cent premium at current market price through the tender offer.“HPCL was more liberal in terms of deciding buyback price range up to Rs 250 through open market route,” said Binod Modi, head of strategy, Reliance Securities. “However, NTPC’s buyback price of Rs 115 through the tender route was significantly below the Street's estimate.”79376696In an open market buyback through the order matching mechanism, the buyback is required to close within six months from the date of opening the offer. Buyback through the tender offer is required to close within 10 working days from the date of opening. Promoters cannot participate in the open market buyback.“The HPCL buyback will create value for all shareholders as the intrinsic share value is a lot more than the current market price and even the Rs 250 per share maximum buyback price,” said Sabri Hazarika, analyst, Emkay Global.“Buyback through the open market will lend support to the stock price as the company will buy shares as and when the stock price declines,” said Siddhartha Khemka, head- retail research, Motilal Oswal Financial Services.
Categories: Business News

IPO market warms up for a busy December

November 24, 2020 - 8:16am
Mumbai: The holy trinity of a bull market — liquidity, investor interest, and plunging debt returns — is drawing promoters to list: At last count, more than half a dozen unlisted companies are set to take the leap of faith in the Christmas month, having firmed up plans to go public.Suryoday Small Finance Bank, ESAF Small Finance Bank, Nazara Technologies, RailTel, Burger King, Kalyan Jewellers and Antony Waste Management are among those that are conducting road shows and planning initial public offers (IPOs) in December, bankers told ET.So far in 2020, 12 companies collectively raised Rs 24,963 crore through IPOs, compared with Rs 12,363 crore raised by 16 companies in 2019. The majority of this year's issues yielded handsome returns. Route Mobile is trading at a premium of 179 per cent over the issue price; Premiums to offer price for Happiest Mind Technologies are at 92 per cent, Rossari Biotech at 86 per cent, Gland Pharma at 40 per cent and Mazagon Dock at 25 per cent.79380030Private equity major Warburg Pincus-backed Kalyan Jewellers is likely to launch its Rs 1,750-crore maiden IPO in December. The IPO comprises Rs 1,000 crore of fresh issue and Rs 750 crore offer for sale by promoter T S Kalyanaraman and Highdell Investment, a Warburg Pincus firm, according to its draft prospectus.Suryoday SFB and ESAF SFB are likely to raise Rs 1,000 crore each in December. The Suryoday IPO comprises fresh issuance of 11.6 million equity shares and an offer for sale of up to 8.5 million shares by International Financial Corporation (IFC), Gaja Capital, and HDFC Holdings among others. ESAF IPO is 800 crore of fresh issue and 200 crore of offer for sale by the existing shareholders Bajaj Allianz Life Insurance and PI Venture.Rakesh Jhunjhunwala-backed Nazara Technologies is planning to hit the primary market to raise about 950 crore. Besides Jhunjhunwala, Westbridge Ventures, Turtle Entertainment, IIFL Special Opportunity Fund and Emerging Investments are other key shareholders of the Mumbai-based mobile gaming company.“As of now, companies that have been Covid winners or leaders in their sectors have got listed. However, IPO activity in the next 3-6 months would be dominated by resilient sectors such as tech, healthcare and consumer and also from recovering sectors like hospitality and BFSI,” said V Jayasankar, head of equity capital markets, Kotak Investment Banking.State-owned RailTel Corporation of India is likely to hit the primary market in the first week of December to raise about Rs 700 crore. The IPO is entirely an offer-for-sale through which the government will offload 86.6 million equity shares.Some of the companies that had deferred their IPO plans are also now ready to tap the market again on robust investor appetite, said bankers.Burger King India is expected to launch its maiden IPO mid-December to raise Rs 542 crore through fresh issue and Rs 400 through offer for sale of up to 60 million equity shares by QSR Asia, the promoter.Antony Waste Handling Cell, which cancelled its IPO in March, will also likely try again in December, according to bankers.
Categories: Business News

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