Sensex Zooms 600 Points as Metal Stocks Rally; LIC Lists at 9% Discount

Tue, 17 May 10:30 am

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Asian share markets rose in early trade today despite a lower finish on Wall Street. The Nikkei us up 0.3% while the Hang Seng surged 2.2%.

The Shanghai Composite, on the other hand, reversed losses and is up 0.3%.

In US stock markets, Wall Street indices ended another volatile session lower on Monday, extending the losing streak.

The Dow Jones ended flat while the tech-heavy Nasdaq Composite shed 1.2%.

Back home, Indian share markets are trading on a positive note.

Market participants are tracking shares of Bharti Airtel, IOC and PI Industries as these companies are slated to post their March quarter earnings today.

The BSE Sensex is trading up by 348 points. Meanwhile, the NSE Nifty is trading higher by 114 points.

Tata Steel and Reliance are among the top gainers today. Asian Paints, on the other hand, is among the top losers today.

The BSE Mid Cap index is up 0.4% while the BSE Small Cap is trading higher by 0.7%.

Sectoral indices are trading mixed with stocks in the metal sector and energy sector witnessing most of the buying.

Realty and pharma stocks, on the other hand, are trading in red.

Shares of Reliance, KSB and Blue Star hit their 52-week highs today.

The rupee is trading at 77.73 against the US$.

Gold prices are trading up by 0.3% at Rs 50,386 per 10 grams.

Meanwhile, silver prices are trading up by 0.2% at Rs 61,062 per kg.

Crude oil prices are down today after the European Union's efforts to enact a ban on Russian oil imports, a move that would tighten global supply, ran into resistance from member country Hungary.

Speaking of stock markets, India's #1 trader Vijay Bhambwani explains when the stock markets will bounce back, in his latest video for Fast Profits Daily.

Vijay answers this question with the help of three charts. Tune in to the below video to know more:

In news from the insurance space, Life Insurance Corporation (LIC) listed on the exchanges at Rs 865 per share, which is a discount of 9% over issue price.

The muted listing for the state-owned life insurer was on the cards as its grey market premium (GMP) in the unlisted market vanished over the past couple of days.

The weak listing could also be due to the market conditions and relatively lower investor participation during the book building process.

LIC shares listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The highly anticipated and India's biggest initial public offering (IPO), which lasted from 4 May to 9 May, was subscribed 2.95 times.

Through the IPO, the government sold a 3.5% stake.

With its listing today, LIC became the fifth-largest company in India valued over Rs 6 tn.

Since you're interested in IPOs, check out the current and upcoming IPOs on our website.

Speaking of the insurance sector, have a look at the chart below which shows the investment assets of non-life insurers and life insurers over the past 10 years:

Investment Assets of Non-Life Insurers 11x That of Life Insurers

As per Tanushree Banerjee, Co-Head of Research at Equitymaster, the above chart is enough proof of how big an earning opportunity is the zero-cost float to the non-life insurers. Their investment assets under management is nearly 11 times that of life insurers.

In news from the apparel space, Raymond is among the top buzzing stocks today.

Apparel and garment company Raymond on Monday reported over four-fold jump in its consolidated net profit to Rs 2.6 bn for the fourth quarter ended in March 2022. This was helped by a buoyant demand and strong consumer sentiments during the period.

The company had posted a net profit of Rs 0.6 bn during the January-March quarter of the previous fiscal.

Its revenue from operations was up 43.4% to Rs 19.6 bn during the quarter under review as against Rs 13.7 bn in the corresponding period of the previous fiscal.

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Its total expenses came at Rs 17.9 bn, up 33.4% YoY.

This quarter also marked as Raymond's best as it reported highest-ever revenue and profitability.

In an exchange filing, the company said,

• Having core brand strength and a wide distribution network across the country, Raymond capitalized on the buoyant demand and strong consumer sentiments during the last quarter of the financial year 2022.
  
  With work-life coming back to the physical mode coupled with strong wedding season, demand across our B2C businesses witnessed the growth impetus.

During the quarter, demand in international markets and robust momentum of export orders were maintained in garments and engineering businesses.

In a separate filing, the company informed that its board recommended the payment of a dividend of 30% on the equity share capital, which is Rs 3 per equity share.

Raymond share price is currently trading up by 3.5%.

To know more, check out Raymond's latest quarterly results.

Moving on to news from the commodities space, India's wheat stock in 2022-23 may fall to their lowest level since 2016-17, and second lowest in the past 13 years, with the government's own purchases of the cereal likely being the lowest in 15 years.

According to data released, the staple's offtake has risen 38% over the last two years.

Last week, India said it was suspending exports of wheat to manage its food security which is at risk.

The food ministry said it had enough stocks to smoothly run the public distribution system. However, lower output due to a prolonged heat spell in March and record exports have necessitated a calibration of quantities of the winter staple that will be supplied through food schemes.

The government has kept a window open for overseas sales should a foreign neighbouring government make a request.

We will keep you updated on the latest developments from this space. Stay tuned.

In the meantime, read our editorial on wheat stocks in India and whether this is the perfect time to invest in wheat stocks.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

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

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