Sensex Opens Flat; L&T, Tech Mahindra and Wipro Among Top Gainers

Wed, 14 Jul 09:30 am

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Asian share markets fell today after data showing the biggest jump in US inflation in thirteen years fueled expectations that the Federal Reserve could exit pandemic-era stimulus earlier than previously thought.

The Hang Seng is down 0.5% while the Nikkei is trading lower by 0.3%. The Shanghai Composite is trading down by 0.8%.

In US markets, Wall Street indices finished lower after investors sifted through hotter-than-expected US consumer-price index data and parsed quarterly results from some of the country's biggest banks.

The Dow Jones Industrial Average fell 0.3% and the Nasdaq Composite dropped 0.4%.

Back home, Indian share markets have opened on a flat note, following the trend on SGX Nifty.

Market participants will closely track Zomato's Rs 93.8 bn IPO, which kicks off today.

Infosys, 5Paisa Capital, Craftsman Automation, Dodla Dairy, and L&T Technology Services are among the companies that are slated to post their quarterly earnings today.

The BSE Sensex is trading down by 12 points. Meanwhile, the NSE Nifty is trading lower by 5 points.

Tech Mahindra is among the top gainers today. Maruti Suzuki, on the other hand, is among the top losers today.

The BSE Mid Cap index has opened up by 0.3%. The BSE Small Cap index is trading higher by 0.4%.

Sectoral indices are trading mixed with stocks in the power sector and IT sector witnessing buying interest.

Banking stocks and finance stocks, on the other hand, are trading in red.

Shares of Mindtree and GHCL hit their 52-week highs today.

The rupee is trading at 74.57 against the US$.

Gold prices are trading up by 0.1% at Rs 47,817 per 10 grams.

Meanwhile, silver prices are trading down by 0.1% at Rs 69,390 per kg.

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani, talks about why the global oil cartel is unravelling and how India stands to gain, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

In news from the IPO space, the government is aiming to list insurance behemoth LIC by the last quarter of the current financial year and merchant bankers for the transaction would be appointed soon.

Last week, the Union Cabinet approved the IPO of LIC, which is set to be the biggest Indian IPO.

Several estimates suggest that LIC could raise Rs 900 bn to Rs 1 tn, handing over much-needed revenue to the government against the backdrop of the Covid-19 pandemic.

DIPAM secretary Kanta Pandey said the panel headed by FM Nirmala Sitharaman will decide on the exact quantum of share sale.

He added that the department of financial services was working on fulfilling other requirements for the IPO.

The draft prospectus for the IPO would also be filed soon.

LIC, fully owned by the Indian government, is a big investor in share sales, including IPOs of state-run companies.

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

Moving on to news from the mining sector, NMDC is among the top buzzing stocks today.

State-owned National Mineral Development Corp (NMDC) has started the process to carve out its steel unit and list it as a separate business on the bourses.

The demerged undertaking would be vested with NMDC Steel pursuant to the demerger.

The entire share capital of NMDC Steel held by the NMDC would be cancelled and new equity shares of NMDC Steel would be issued to all shareholders of NMDC in the same proportion.

Note that this move by NMDC comes at a time when the government plans to increase steel production to take advantage of the high metal prices.

The government plans to increase India's steel production capacity to 300 m tonnes per annum (MTPA) by 2025. To achieve its goal, green-field steel plants are being promoted through special purpose vehicles (SPVs) in mineral-rich states such as Chhattisgarh, Jharkhand, Kamataka and Odisha.

NMDC is engaged in the exploration of a wide range of minerals, while NMDC Steel is a wholly-owned subsidiary of NMDC.

At present, NMDC Steel does not have business operations.

In October last year, the cabinet committee on economic affairs had given its in-principle approval to the demerger and strategic disinvestment of NMDC Steel by selling the government's stake in the mill steel to a strategic buyer.

Last week, the government offloaded stake in NMDC through an offer for sale (OFS).

The government holds 68.3% stake in the company and after the OFS, the stake will drop to 60.8%.

NMDC share price has opened the day up by 1.3%. It rose over 3.5% yesterday after the demerger announcement.

Speaking of public sector undertakings (PSU), have a look at the chart below which shows the performance of BSE PSU index compared to BSE Sensex over the past few years.

As can be seen from the chart above, over the last decade, Rs 100 invested in BSE-PSU index would have eroded to Rs 80, compared to almost 3x gains for the Sensex.

Here's what Richa Agarwal, lead Smallcap Analyst at Equitymaster, wrote about PSU stocks in a recent edition of Profit Hunter:

• However, it will be folly to paint all PSUs with the same brush. There are some exceptions in this space, which put their private peers to shame.
  
  In a recent editorial, I shared an opportunity in a PSU stock that is riding and enabling an irreversible megatrend - digitisation.

One of Richa's stock recommendation (subscription required) is a stock from this space. This smallcap PSU is leading the digitisation drive from the frontlines.

Richa believes it could be a perfect bet for these uncertain times. Hidden Treasure subscribers can read the recommendation here.

And if you're not a subscriber, here's where you can sign up.

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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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

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Indian Share Market Update: Top Gainers and Losers