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Indian Indices Recover Steadily, Key Sectors Rebound, and Top Stocks in Action
Wed, 28 Mar Pre-Open

On Tuesday, share markets in India opened on a positive note but ended the day in green.

The BSE Sensex closed higher by 108 points to end the day well above the 33,000 mark at 33,. While the broader NSE Nifty ended the day higher by 54 points to end at 10,184 levels.

Among BSE sectoral indices, metal stocks rose the most by 1.7%, followed by PSU stocks at 1.6%. SBI and IndusInd Bank were among the top gainers.

Top Stocks in Action Today

JSW Steel share price is likely to be in focus today after reports that the company is planning to invest up to US$ 500 million to expand its Texas operations through its US unit, as part of a Memorandum of Cooperation signed with the Texas Governor's office.

Glenmark Pharma share price is among the stocks to watch today, after it was reported that the company received a ANDA (abbreviated new drug application) approval from the United States Food & Drug Administration (USFDA).

Government Borrowing to Shrink

In order to ease the pressure on the local bond markets, the Central government will borrow Rs 2.88 trillion in the April-September period of 2018-19 (H1FY19), which is lesser than Rs 3.72 trillion it had borrowed during the same period of FY18.

The borrowing for the first half of 2018-19 works out to 47.6% of budgeted gross market borrowing which is much lower than the average of 60-65% in the last five years.

Department of Economic Affairs (DEA) Secretary Subhash Chandra Garg has said that the government will also come out with inflation indexed bonds linked to consumer price index (CPI) inflation. He also informed that the government will introduce a new bucket of bonds with duration of one to four years, indicating its willingness to borrow more through short-term securities.

Besides, he noted that the budgeted gross borrowing through G-Secs for fiscal 2018-19 was Rs 6.05 trillion which would be used to fund the fiscal deficit of 3.3% of GDP.

The government also plans to reduce the G-Sec buyback by Rs 250 billion in the next fiscal. In addition to this, he said that the government will withdraw up to Rs 1 trillion from the National Small Savings Fund (NSSF) -- Rs 250 billion more than in the current financial year -- to fund the fiscal deficit.

He added that this could reduce the overall market borrowing programme of the government for the entire fiscal.

IPO Buzz

Kolkata-based private lender Bandhan Bank made a stellar debut on bourses yesterday. The scrip of the company, which recently concluded its IPO subscription offer, got listed at Rs 499, a 33% premium to its issue price of Rs 375 and ended the day up 27% from its issue price.

To give you a bit of the bank's history, its parent company, Bandhan Financial Services (BFSL) was a NGO providing microfinance to economically disadvantaged women in rural West Bengal. It started the microfinance business in 2006. On August 23, 2015, when BFSL, transferred its entire microfinance business to Bandhan Bank, it was India's largest microfinance company by number of customers and size of loan portfolio.

Bandhan Bank and IDFC Bank were the only two entities to get the RBI's banking licenses in 2014.

To know more about the company, you can read our IPO analysis of Bandhan Bank (subscription required).

Moving on, the Rs 40.2 billion initial public offering (IPO) of ICICI Securities could only manage 78% subscription on the last day of the issue on Monday.

However, including anchor allotment, the issue received a total of 87.9% subscription.

In a statement, the company has successfully closed its proposed offer for sale (OFS) and has raised around Rs 35 billion. Out of this, around Rs 17.17 billion was raised from anchor investors.

The company's announcement meant it lowered the issue size to sail through. This is third subsidiary firm from the ICICI group to hit the market in past two years. The QIB portion was fully subscribed, but the quota for retail investors (88%) and non-institutional investors (33%) remained undersubscribed.

Overall, this was the fourth issue of the ICICI Group after ICICI BankICICI Prudential Life and ICICI Lombard General Insurance.

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