Sensex Opens Flat; Healthcare Stocks Lead

Wed, 14 Jun 09:30 am

   Previous Close   

   Pre-Open   

   11:30 am   

   01:30 pm   

   Closing   

Asian equity markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.10%, while the Hang Seng is down 0.23%. The Shanghai Composite is trading down by 0.22%. US markets bounced back to record highs on a rebound in technology stocks.

Meanwhile, share markets in India have opened the day on a flat note with positive bias. The BSE Sensex is trading higher by 27 points while the NSE Nifty is trading higher by 14 points. The BSE Mid Cap Index and BSE Small Cap index both opened the up by 0.1%.

Barring metal stocks, FMCG stocks and consumer durables stocks, all sectoral indices have opened the day in green with realty stocks and healthcare stocks leading the pack of gainers. The rupee is trading at 64.45 to the US$.

Dr Reddy's Laboratories share price opened over 1.5% after it was reported that the company has received Establishment Inspection Report (EIR) from the USFDA for its active pharmaceutical plant (API) at Miryalaguda indicating the successful closure of the agency's audit.

Information technology stocks opened the day on a mixed note with Moser Baer India and Wipro leading the gains. As per an article in a leading financial daily, Wipro has invested US$ 809,690 (about Rs 51.2 million) in management and IT consulting firm Drivestream.

Drivestream was established in 2001 and had revenue of about US$20.5 million at the end of 2016.

The investment is part of Wipro's strategic drive to actively participate in the external innovation eco-system, for which the company has set up Wipro Ventures, a US$ 100 Million fund focused on investing in disruptive start-ups.

Reportedly, the cash consideration will see Wipro acquiring 19,679 preferred stock and 27,865 common stock. Wipro now holds 26.1% share in Drivestream (on a fully diluted basis).

Meanwhile, Wipro announced the issue of bonus shares to shareholders (including to ADS holders) on April 25. The ratio is one equity share for every one equity share held. It has fixed record date as 14 June for bonus issue.

Consequently, Wipro share price halved to Rs 263.15 from previous day's closing value of Rs 526.

Whenever a listed company announces a bonus, one can see a surge in the company's stock price. However, Ankit Shah points out in one of the editions of The 5 Minute WrapUp, do bonus issues really make you wealthier? Here's an excerpt of what he wrote:

• "What happens through this process is that a certain value is transferred from the reserves to the equity capital of the company. The same reserves which are already owned by shareholders! Ultimately, there is higher liquidity. But, no change in the proportionate stake in the company."

So, bonuses and stock splits may lift the stock price in the short term; however, there is no addition to the stock's intrinsic value which is based solely on fundamentals.

Moving on to the news from IPO space. The latest entrant to the IPO (initial public offering) market, Tejas Networks, is set to hit the Street today.

Ahead of its IPO, Tejas Networks on Tuesday raised nearly Rs 3.50 billion through the issuance of shares to 17 anchor investors.

The maker of optical and data networking products' IPO will close on 16 June 2017. The price band has been set between Rs 250 and Rs 257 per share and plans to issue fresh equity shares worth Rs 4.50 billion and an offer for sale of up to 12,711,605 equity shares.

Bids can be made for a minimum of 55 equity shares and in multiples of 55 equity shares thereafter.

Interestingly, in FY17, the amount of money raised through 25 IPOs nearly doubled to Rs 282 billion. The IPOs were well received, with a majority (15 of them) getting oversubscribed by over 10 times.

After a bumper year in FY17, abundant liquidity has fueled expectations that fundraising through IPOs would remain robust in FY18. This may even surpass the amount raised in FY17.

IPO Market Buzzing

In fact, as per the chief of Bombay Stock Exchange, 1,000-odd companies are planning to get listed once GST kicks in.

However, we don't need thousands of IPOs to get rich. That's not how super investors make their fortunes. But a few good IPOs could certainly become the multibaggers in your portfolio in a few years.

Download this FREE report now and discover How to Get Rich with IPOs. This guide will show you how to safely profit from the 2017 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

Top Gainers TodayTop Gainers over 1-WeekTop Gainers over 1-MonthTop Gainers over 1-YearTop Gainers over 3-YrsTop Gainers over 5-YrsTop Losers TodayTop Losers over 1-WeekTop Losers over 1-MonthTop Losers over 1-YearTop Losers over 3-YrsTop Losers over 5-YrsOnly BuyersOnly SellersMost Active StocksMost Popular Stocks52 Week High Stocks52 Week Low Stocks

INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

10 results 25 results 50 results 100 results All results

Indian Share Market Update: Top Gainers and Losers