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Indian Indices Continue Momentum, IPOs Back in Focus, and Top Stocks in Action
Thu, 14 Jun Pre-Open

On Monday, share markets in India opened on a positive note and ended the day in green after a volatile day of trading.

The BSE Sensex closed higher by 47 points to end the day at 34,739. While the broader NSE Nifty ended the day higher by 14 points to end at 10,856.

Among BSE sectoral indices, IT stocks rose the most by 1.3%, followed by pharma stocks at 0.6%. Dr Reddy's Labs and TCS were among the top gainers.

Top Stocks in Action Today

TCS share price is likely to be in focus after the country's largest software services firm said that its board will consider a proposal for a buyback at the end of the week.

The company, however did not disclose the details of the buyback.

Sun Pharma share price is among the stocks to watch today the company received the establishment inspection report (EIR) for its for its critical Halol facility in Gujarat indicating a closure of inspection.

As per USFDA, after the completion of an inspection of a facility, an EIR is issued to a company detailing inspection findings.

IPO Buzz

Government-owned engineering consultancy RITES Ltd said that it will launch its Rs 4.6 billion initial public offering (IPO).  The company has set a price band of Rs 180-185 per share. The IPO is a pure offer for sale by the government, which is selling a 12% stake in the company.

The market is gearing up for a burst of activity, with at least 12 companies planning to raise more than Rs 170 billion over the next two months, after a quiet start to the June quarter.

Rhe last IPO to hit the primary market was IndoStar Capital Finance Ltd, which raised Rs 18.4 billion through its share sale in May.

Reportedly, the introduction of the new Indian accounting standards (IndAS) as one of the reasons why IPO-bound companies have not approached the market so far, this quarter.

All companies, including unlisted ones, having net worth of between Rs 2.5 billion and Rs 5 billion have to prepare their financial accounts for the year ended 31 March 2018 as per the IndAS accounting standards. Companies with net worth of Rs 5 billion or more had to implement the new standard a year earlier.

As per the reports, the pipeline in the June quarter will be very healthy. The market/IPO outlook continues to be strong and robust for the next two quarters if not the entire year.

Several major IPOs, including those of HDFC Asset Management Co. Ltd, auto parts maker Varroc Engineering Ltd, non-banking financial company IndoStar Capital Finance Ltd, microfinancier CreditAccess Grameen Ltd and women's apparel maker TCNS Clothing Co. Ltd, are set to hit the market this quarter.

Other companies that may launch their IPOs in the quarter include seafood exporters Devi Seafoods Ltd and Nekkanti Sea Foods Ltd. Both said they would decide on the timing of the launch after they get regulatory approval for their respective share sales.

In the first quarter of 2018, 14 companies raised a total of Rs 185.9 billion through the IPO route, a more than fourfold increase from the Rs 41.9 billion raised by five companies in the same period a year earlier.

In 2017, 64 companies tapped the IPO market to raise Rs 671.5 billion.

IPO activity last year was dominated by large issuances such as HDFC Standard Life Insurance Co. Ltd, SBI Life Insurance Co. Ltd, ICICI Lombard General Insurance Co. Ltd, New India Assurance Co. Ltd and General Insurance Corp. of India Ltd, which collectively raised Rs 437.6 billion.

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