Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  


Sensex Opens Marginally Up; Wipro & Infosys Top Gainers
Tue, 16 Jan 0

Asian stock markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 0.55% while the Hang Seng is up 1.12%. The Shanghai Composite is trading up by 0.29%. US stocks rose to record highs on Friday and were closed on Monday for Martin Luther King Jr. Day.

Back home, India share markets opened the day marginally up. The BSE Sensex is trading higher by 62 points while the NSE Nifty is trading higher by 16 points. The BSE Mid Cap index and BSE Small Cap index opened the day up by 0.1% & 0.3% respectively.

All sectoral indices have opened the day in green with capital goods stocks and consumer durables stocks witnessing maximum buying interest. The rupee is trading at 63.41 to the US$.

Tech Mahindra share price surged 2.2% on the reports that it has partnered with Israeli firm ContextSpace Solutions to develop the world's first global software privacy ecosystem, MyData Shield. Besides, it has also launched 'Tech Mahindra NxT' to power start-ups in Israel, under which it will engage with 20 firms.

Pharma stocks have opened the day on a mixed note with Torrent Pharma and IPCA Labs being the most active stocks in this space. As per an article in a leading financial daily, Lupin Limited has forayed into over-the-counter (OTC) segment with the pan-India introduction of Softovac, a bowel regulator.

Reportedly, Lupin Life Consumer Healthcare, a division of Lupin, would roll out an OTC product every quarter and targets to clock Rs 3 billion in turnover in five years.

Besides, it is also looking for acquisitions to broad-base its product offerings and scale up quickly. The firm operates in the areas of vitamins and lifestyle products to name a few.

Further, OTC segment has vast potential for growth and Lupin would invest heavily in this business to build multiple billion rupee brands in two years, the reports noted.

Pegged at more than US$2.7 billion in 2016, the Indian OTC market is expected to grow at a CAGR of 9% to cross the US$6.5-billion mark by 2026.

As patents expire and generic drugs becoming available, pharma companies look forward to penetrate in the OTC market. As per the USFDA website, OTC drugs are defined as "drugs that are safe and effective for use by the general public without seeking treatment by a health professional". This means an OTC drug will not require prescription to buy and can be bought as any other consumer products.

Lupin share price opened the day up by 0.4%.

Moving on to the news from IPO space. Casual dining chain Barbeque Nation Hospitality has received markets regulator's approval to raise an estimated Rs 7 billion through initial public offering (IPO).

Barbeque Nation Hospitality's IPO comprises fresh issue of shares worth Rs 2 billion and an offer for sale of up to 6.2 million equity shares, according to the draft red herring prospectus (DRHP).

Proceeds from the issue will be utilised towards setting-up of new Barbeque Nation restaurants in India, repayment of loans, and general corporate purposes.

One shall note that, Barbeque Nation Hospitality, which owns and operates Barbeque Nation restaurants, has steadily grown its owned and operated restaurant network from a single restaurant in 2006-07 to 81 till 30 June 2017.

Speaking of IPOs, the demand for IPO's has reached sky-high levels. Avenue Supermarts was seen as the first company last year to cross the 100-time subscription mark swiftly followed by CDSL and Dixon technologies, among others.

IPO Subscription Times (2017)


This euphoria is something similar to what was seen in 2007-08. When everyone around you is clamoring to get a piece of the IPO pie, it makes sitting tight difficult. And, why should you sit tight when stocks like Avenue Supermart lets you pocket a cool 100% gain from day 1 of the listing?

History suggests that these cases are few and far between. More than 70% of the IPOs listed in 2007 and 2008 are in the red, even today when the Sensex is at an all-time high.

A merit-based selection primarily including valuation, business, and management quality is the logical way to go about investing in IPOs. If it means going against the herd, so be it. And going by recent past, this strategy has been proven to be successful more often than not.

To know more, you can download our FREE report - How to Get Rich with IPOs. This guide will show you how to safely profit from the ongoing IPO rush.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Sensex Opens Marginally Up; Wipro & Infosys Top Gainers". Click here!