Share markets in India have continued their momentum and are presently trading on a positive note. Barring IT sector, all sectoral indices are trading in green with stocks in the realty sector and capital goods sector witnessing maximum buying interest.
The BSE Sensex is trading up by 354 points (up 1%), while the NSE Nifty is trading up by 103 points (up 0.9%). The BSE Mid Cap index is trading up by 0.6% and the BSE Small Cap index is trading up by 0.9%.
The rupee is currently trading at Rs 69.62 against the US$.
In the news from the insurance sector, HDFC Life Insurance Company share price is in focus today. The stock of the company is witnessing selling pressure as Standard Life, the joint venture partner in HDFC Life Insurance, is set to sell close to 5% stake in the company to meet public shareholding norm. The share sale will fetch around Rs 35.7 billion to Standard Life.
The floor price for the offer is set at Rs 357.5 and the share sale will be conducted over the next two days.
Standard Life will sell up to 70 million shares, or 3.47% of the total equity of HDFC Life Insurance Company on March 12 through the offer for sale (OFS) route with an option of selling additional 1.46%, or 29.5 million shares, in the event of oversubscription.
In other news, as per a leading financial daily, fund managers of top 10 fund houses by assets under management (AUMs) in India have shown considerable interest in public sector undertakings (PSUs) in February.
The main reason for this interest is valuation (one-year forward basis) of key PSU companies. Note that valuations of PSU companies are at multi-year lows and the discount between prominent PSU stocks and the Nifty is as high as 50%.
Here's an excerpt from an article in The Economic Times...
Some of the PSU stocks that have attracted huge buying from mutual funds in February include NTPC, Engineers India, GAIL, NALCO, and Coal India.
How these stocks perform remains to be seen. Meanwhile, we will keep you updated on all the developments from this space.
Also, speaking of mutual funds, it is worth noting that inflows into equity mutual funds stand at 25-month low.
Here's what Ankit Shah wrote about this in a recent edition of The 5 Minute WrapUp...
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