Sensex Ends 470 Points Lower; Tata Motors & Tata Steel Fall 6%
Closing

Indian share markets witnessed huge selling pressure today, in line with global equities and fell on to bearish territory.

After opening on a flat note, benchmark indices slipped into the red and extended losses amid heavy selling in metal and healthcare stocks.

That apart, expectations that the Reserve Bank of India (RBI) may set out proposals in a discussion paper this week, recommending that bigger shadow banks hold a share of deposits in cash, gold or government securities, weighed on financial stocks.

At the closing bell, the BSE Sensex stood lower by 470 points. The NSE Nifty ended down by 152 points.

Reliance Industries was among the top gainers today. ONGC, on the other hand, was among the top losers today.

SGX Nifty was trading at 14,255, down by 205 points, at the time of writing.

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The BSE Mid Cap index ended down by 2%. The BSE Small Cap index ended lower by 1.9%.

Sectoral indices ended on a negative note with stocks in the healthcare sector and metal sector witnessing maximum selling pressure.

Shares of HDFC Bank and Indian Energy Exchange hit their respective 52-week highs today.

Asian stock markets ended higher today as investors cheered better-than-expected gross domestic product (GDP) data pointing to a strong recovery in China.

As of the most recent closing prices, the Nikkei ended down by 1% and the Hang Seng ended up by 1%. The Shanghai Composite ended up by 0.8%.

US stock futures are trading lower today. Nasdaq Futures are trading down by 16 points (down 0.1%), while Dow Futures are trading down by 65 points (down 0.2%).

The rupee is trading at 73.29 against the US$.

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Gold prices are trading up by 0.1% at Rs 48,768 per 10 grams.

Speaking of the current stock market scenario, in her latest video, Co-head of Research at Equitymaster, Tanushree Banerjee lays down the steps that could help you reset your portfolio for a profitable 2021.

This is first time in 25 years that a benchmark index in India, the BSE Sensex, is trading at a P/E multiple of 40x. The last time the Sensex breached this multiple in October 1994.

Most investors are worried about parking money in safe stocks or safe asset classes. But are they making the right choices?

Tune in to the video to find out more:

Also speaking of the current stock market scenario, note that since the lows in March 2020, the smallcap index has gained more than 100%.

While caution is indeed warranted, Richa Agrawal, Research Analyst at Equitymaster, thinks there is still a lot more steam left to this smallcap rally.

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Despite rallying more than 100% since the March 2020 lows, Richa believes small-cap stocks are set for a massive up move in 2021 and beyond.

Here's what she wrote in a recent edition of Profit Hunter...

  • The P/E for smallcap index doesn't make sense. There are thousands of listed small companies. Some have negative earnings. The base is not a valid data to work with.

    That said, the closest proxy to relative valuations is the Smallcap to Sensex ratio,

    Historically, this ratio has averaged 0.43x. In the previous mega runs of the smallcap index, this ratio has gone as high as 0.75x.

    In January 2018, when smallcaps peaked, the ratio was at 0.58x.

    Guess where this ratio is now after a 100% run up in the smallcap index?

    0.38.

    It's lower than the median over 2 decades.

Richa believes if you focus on the quality of business, margin of safety in valuations, and an optimum asset allocation, you are likely to create huge wealth for yourself.

In latest developments from the IPO space, Nazara Technologies, the cricket games developer backed by billionaire Rakesh Jhunjhunwala, became the first Indian gaming technology company to seek a market debut.

The Mumbai-headquartered startup filed initial public offering (IPO) documents with market regulator last week on Friday.

Founded by gamer Nitish Mittersain in 2000, Nazara is among the firms that have benefited from a global boom in smartphone gaming that began even before the pandemic drove millions online.

The company is seeking to be among the first major Indian startups to go public.

Nykaa E-Retail Pvt., backed by TPG, is said to be planning an IPO as soon as this year that could value the Indian online cosmetic retailer at more than US$ 3 billion.

Nazara plans to offer up to 4.96 million equity shares for sale, at a face value of Rs 4 each, the filing showed.

Note that food delivery startup Zomato has said it will file for an IPO in the first half of 2021.

In other news, the IPO of Indian Railway Finance Corporation (IRFC), the subsidiary of Indian Railways, was subscribed 51% so far today, the first day of bidding.

The offer received bids for 630 million equity shares against an IPO size of over 1,248 million equity shares.

The retail investors remained strong in the primary as well as a secondary market. The portion set aside for them has subscribed 98% on the first day itself, while the employee portion was subscribed 3.4%.

The IPO size excluded the anchor book which already received a good response from investors. The company raised Rs 13.9 billion of its total issue size of Rs 46.3 billion, through the anchor book.

The company has fixed Rs 25-26 per share as the price band for the issue, which will close on January 20.

How this IPO sails through remains to be seen. Meanwhile, we will keep you updated on the latest developments from this space.

Moving on to stock specific news...

Adani Green Energy was among the top buzzing stocks today.

TOTAL France, a global energy major, will pick up a 20% stake in Adani Green Energy, the renewable power company of Adani Enterprises, by way of acquisition of shares held by the Adani Promoter Group (APG).

This is the second partnership between TOTAL and an Adani group company. In 2018, TOTAL acquired a 37.4% stake in Adani Gas and a 50% stake in Dhamra LNG project. The JV entailed developing various regasification terminals including Dhamra LNG and a retail network of 1,500 service stations over a period of 10 years.

As part of the current deal, TOTAL will pick up a 50% stake in a 2.35 GW portfolio of operating solar assets owned by Adani Green Energy.

The company will also pick up a 20% stake in Adani Green Energy for a global investment of US$ 2.5 billion.

In February 2020, TOTAL and Adani Green Energy created a 50-50 joint venture at an enterprise value of Rs 173.9 billion, into which Adani Green would transfer its operational solar assets. The total operating renewable portfolio under the JV stands at 2.3 GW.

Adani Green Energy share price ended the day up by 0.6%.

Moving on to news from the IT sector, shares of Tata Elxsi rallied 7% today after foreign portfolio investors (FPIs) increased their stake in the company by nearly one percentage points during the October-December quarter (Q3FY21).

According to the Q3FY21 shareholding pattern filed by Tata Elxsi, FPIs have increased their holding in the company by 0.87% to 12.62% from 11.75% at the end of September 2020 quarter (Q2FY21).

FPIs held 10.54% stake in Tata Elxsi as on June 30, 2020 (Q1FY20), shareholding pattern data shows. They bought an additional 1.30 million equity shares of the company between July and December 2020.

In the past two quarters, FPIs have increased their stake in Tata group company by 2.08 percentage points.

Last week, the company reported strong Q3FY21 results with double-digit quarter on quarter (QoQ) revenue growth and industry-leading operating margins.

The company's revenues increased by 10.9% QoQ to Rs 4.8 billion. In constant currency terms, revenues grew 10% QoQ mainly led by growth in transportation, broadcast & communication and healthcare segment.

Tata Elxsi share price ended the day up by 5.3%.

To know more, you can read Tata Elxsi's Q3FY21 result analysis on our website.

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


Sensex Trades Over 300 Points Lower; Dow Futures Down by 31 Points
12:30 pm

Share markets in India are presently trading on a negative note.

The BSE Sensex is trading down by 390 points, down 0.8% at 48,644 levels.

Meanwhile, the NSE Nifty is trading down by 134 points.

UPL and Reliance are among the top gainers today. Tata Motors and Tata Steel are among the top losers today.

The BSE Mid Cap index is trading down by 1.9%.

The BSE Small Cap index is trading down by 1.8%.

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On the sectoral front, all sectors are trading in red with stocks from the metal sector, witnessing most of the selling pressure.

US stock futures are trading lower today, indicating a negative opening for Wall Street.

Nasdaq Futures are trading down by 20 points (down 0.2%) while Dow Futures are trading down by 31 points (down 0.1%).

The rupee is trading at 73.20 against the US$.

Gold prices are trading up 0.4% at Rs 48,880 per 10 grams.

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Gold prices in India extended their recent slide today when they slipped amid weak global cues. On MCX, gold futures fell 0.1% to over one month low of Rs 48,636 per 10 grams, extending their decline to the third day.

In the previous session, gold prices had declined Rs 500 per 10 grams while silver had slumped Rs 1,700 per kg.

To know more about gold, check out our article on how to invest in gold here: How to Invest in Gold?

Speaking of stock markets, Brijesh Bhatia, Research Analyst at Fast Profits Report, talks about why it might be the right time to take money off the table in pharma stocks, in his latest video for Fast Profits Daily.

Tune in here to find out more:

Moving on to stock specific news...

Among the buzzing stocks today is Wipro.

IT services major Wipro on January 16 said it has completed its Rs 95 billion share buyback programme. The buyback saw Azim Premji-affiliated entities tendering 229 million shares worth about Rs 91.5 billion during the process, a regulatory filing said.

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"(A total of) 237 million equity shares were bought back under the buyback at a price of Rs 400 per equity share. The total amount utilized in the buyback is Rs 95 billion," it added.

The tendering period for the buyback programme opened on December 29, 2020 and closed on January 11, 2021.

While Azim Premji Trust tendered 198.7 million shares, Mr Azim Hasham Premji Partner representing Hasham Traders tendered 10 million shares and Azim Premji Philanthropic Initiatives tendered 5.2 million shares.

Mr Azim Hasham Premji Partner representing Zash Traders and Mr Azim Hasham Premji Partner representing Prazim Traders tendered 750,000 shares each, it added.

Post completion of the buyback, the promoters hold 73% stake in the company, while the remaining 27% stake is held by foreign investors, financial institutions and others.

Note that earlier this month, Wipro's larger rival Tata Consultancy Services (TCS) also completed its Rs 160 billion buyback offer, under which over 53.3 million equity shares were bought back at a price of Rs 3,000 apiece.

At the time of writing, Wipro share price was trading up by 0.2% on the BSE.

Moving on to news from the pharma sector...

Metropolis Healthcare to Acquire Hitech Diagnostic Centre in a Cash, Stock Deal

Diagnostic chain Metropolis Healthcare on January 17 said it will acquire Dr Ganesan's Hitech Diagnostic Centre in a cash and stock combination deal, to strengthen its leadership position in southern India.

The company's board has approved the acquisition partly by way of cash consideration of Rs 5.1 billion and partly by the issuance of up to 495,000 equity shares of a face value of Rs 2 each on a preferential basis, to the promoter group of Hitech. The cash consideration will be funded through internal accruals and debt of up to Rs 3 billion.

By the acquisition, Metropolis will get access to 31 laboratories, including three NABL- and ICMR-accredited laboratories and 68 collection centres of Hitech. The acquisition is expected to be completed within three months.

The acquisition will also allow Metropolis to increase its B2C business in focus cities of Chennai and Bengaluru. It will benefit through optimisation of operational costs in the areas of procurement, supply chain, administration and support resource, laboratory network and back-office infrastructure.

Hitech Diagnostic Centre's Promoter S P Ganesan said Metropolis is the right brand to carry forward the legacy of Hitech. "We shall ensure a smooth integration of Hitech's business with Metropolis to increase the value for the combined entity through cost synergies and create a much stronger consumer brand in South India.

Mr Ganesan will be part of the leadership team for the next few years to enable a smooth transition and integration with Metropolis.

How this pans out remains to be seen. Meanwhile, stay tuned for more updates from this space.

Speaking of the stock markets, here is an illustration of the four phases that a stock goes through during its life cycle. The cycle repeats itself after the stock goes through all these four stages.

This cycle defines everything in markets. If you can master this cycle, then nothing can stop you from making huge profits.

If you're interested to know how a stock's life cycle can offer you the opportunity to make money in every phase, you can read about it in one of the recent editions of Profit Hunter: One Cycle That Defines Everything in the Markets

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


Sensex Opens Marginally Lower; IndusInd Bank & Tata Steel Top Losers
09:30 am

Asian stock markets are trading on a mixed note today as disappointing news on US consumer spending dampened sentiment ahead of a closely-watched reading on the health of the Chinese economy.

China's gross domestic product (GDP) expanded 6.5% year-on-year (YoY) in the fourth quarter, data from the National Bureau of Statistics showed, quicker than the 6.1% forecast by economists in a Reuters poll, and followed 4.9% growth in the third quarter.

Also evident were doubts about how much of US President-elect Joe Biden's stimulus package will make it through Congress given Republican opposition, and the risk of more mob violence at his inauguration on Wednesday.

The Nikkei is trading lower by 0.8% while the Hang Seng reversed early losses and is presently trading up by 0.6%.

US stock markets closed on a negative note on Friday, with the three major indexes registering their largest one week drop since October 30, after President-elect Joe Biden announced a US$ 1.9 trillion Covid-19 relief plan late Thursday and investors assessed results from a trio of big banks.

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The Dow Jones Industrial Average ended down by 0.6% while the tech heavy Nasdaq ended down by 0.9%.

Both indices registered weekly declines with the Dow off 0.9% and the Nasdaq losing 1.5%.

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

Market participants are tracking Mindtree share price and Rallis share price as these companies will release their Q3 numbers today.

The BSE Sensex is trading down by 63 points. Meanwhile, the NSE Nifty is trading lower by 38 points.

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HDFC Bank is among the top gainers today. Power Grid, on the other hand, is among the top losers today.

The BSE Mid Cap index has opened down by 0.5%. The BSE Small Cap index is trading lower by 0.2%.

Sectoral indices are trading mixed with stocks in the finance sector and banking sector witnessing buying interest.

Metal stocks and IT stocks are trading in red.

Shares of Tata Metalik and Indian Energy Exchange hit their 52-week highs today.

The rupee is trading at 73.17 against the US$.

Gold prices are trading down by 0.1% at Rs 48,632 per 10 grams.

To know more about gold, you can check out our detailed article on investing in gold here: How to Invest in Gold?

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Speaking of stock markets, in his latest video for Fast Profits Daily, Vijay Bhambwani shares his top 3 Nifty and Sensex ETFs as well as the number one Bank Nifty ETF.

In of his prior videos, Vijay had also discussed about his top 5 gold ETFs. That video has been quite popular.

Tune in to the below video to find out which ETFs are best.

In latest developments from the IPO space, the Rs 46.3 billion IPO by Indian Railway Finance Corporation (IRFC) opened for subscription today.

This will be the first IPO in 2021. Indigo Paints is scheduled to launch its IPO in the latter part of the coming week.

IRFC targets to raise Rs 44.3 billion at a price band of Rs 25-26 per share. The company already garnered Rs 13.9 billion through anchor book on last Friday.

The net proceeds from its fresh issue are proposed to be utilised towards for augmenting equity capital base to meet future capital requirements arising out of growth in business and general corporate purposes.

How this IPO sails through remains to be seen. Meanwhile, we will keep you updated on the latest developments from this space.

In news from the banking sector, HDFC Bank is among the top buzzing stocks today.

India's largest private sector lender HDFC Bank on Saturday reported a 18.1% rise in its net profit for the December quarter to Rs 87.6 billion.

An average of estimates from five brokerages showed that the private lender may report net profit of Rs 76.3 billion.

The lender reported a growth 15.1% in its net interest income (NII) for the reported quarter to Rs 163.2 billion.

HDFC Bank's gross non-performing assets ratio for the quarter stood at 0.8%. The net non-performing assets ratio was at 0.09% as against 0.17% in the previous quarter.

The lender's advances grew 16% YoY in the December quarter to Rs 10.8 lakh crore, while deposits climbed 19% YoY to Rs 12.7 lakh crore.

HDFC Bank's credit cost in the quarter fell to 1.25% from 1.41%, a quarter ago.

Provisions and contingencies in the quarter were at Rs 34.1 billion as compared to Rs 30.4 billion in the corresponding quarter a year ago.

HDFC Bank also said it has imposed a penalty of Rs 10.20 lakh on its senior executive Jimmy Tata for selling his shares in violation of insider trading regulations.

Tata, the chief credit officer, sold 1,400 shares of the bank held by him in what the lender termed as an "inadvertent trade".

HDFC Bank share price has opened the day up by 1.8%.

Note that, HDFC Bank is one that has always adapted to changing times.

HDFC Bank wanted to transform itself from a leader in the physical banking to a leader in online banking. Since then, HDFC Bank has constantly focused on going digital.

In 2004, only 10% of customer transactions were initiated through internet and mobile. The number has gone up to 92% in 2019.

HDFC Bank's Digital Transformation

It is a great example of a company which has taken advantage of its scale and embraced disruption rather than fear it.

These are traits that one should look for in picking stocks. They not only withstand the disruption but also gain from it in the long-run.

Moving on to news from the finance sector, mortgage lender DHFL on Sunday said the Committee of Creditors (CoC) has approved resolution plan submitted by Piramal Capital and Housing Finance Limited, a Piramal Group company.

This was approved by the CoC in its 18th meeting concluded on January 15, 2021, DHFL said in a regulatory filing.

Piramal's bid received 94% votes as compared to 45% for the US-based Oaktree Capital.

Since the conclusion of the fifth and final round of the bidding process last month, Piramal and Oaktree Capital each claimed that their bid was the highest and fully implementable.

According to sources, suitors have submitted bids in the range of Rs 350-370 billion.

In November 2019, the Reserve Bank of India (RBI) referred Dewan Housing Finance (DHFL), the third-largest pure-play mortgage lender, to the National Company Law Tribunal (NCLT) for insolvency proceedings.

DHFL was the first finance company to be referred to NCLT by the RBI using special powers under Section 227 of the IBC.

DHFL share price has opened the day up by 5%.

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


SGX Nifty Down 38 Points; Indicates Negative Opening for Indian Stock Markets
SGX Nifty

The SGX Nifty opened on a negative note today.

At 8:00 am, it was trading down by 38 points, or 0.27% lower at 14,420 levels.

Trends on SGX Nifty indicate a negative opening for Indian stock markets.

Asian stock markets retreated from highs as disappointing news on US consumer spending dampened sentiment ahead of a closely-watched reading on the health of the Chinese economy.

Reports state that Chinese GDP data is expected to show growth picked up to an annual 6.1% last quarter, from 4.9% in the third quarter.

Also evident were doubts about how much of US President-elect Joe Biden's stimulus package will make it through Congress given Republican opposition, and the risk of more mob violence at his inauguration on Wednesday.

The Hang Seng is trading down by 0.3% while the Shanghai Composite is down 0.2%. The Nikkei is trading lower by 0.7%.

US stock markets closed on a negative note on Friday, with the three major indexes registering their largest one week drop since October 30, after President-elect Joe Biden announced a US$ 1.9 trillion Covid-19 relief plan late Thursday and investors assessed results from a trio of big banks.

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However, data showed US December retail sales fell for a third straight month, while some analysts were skeptical about the chances of Biden's fiscal package passing Congress intact.

The Dow Jones Industrial Average ended down by 0.6% while the tech heavy Nasdaq ended down by 0.9%.

Both indices registered weekly declines with the Dow off 0.9% and the Nasdaq losing 1.5%.

US markets are closed today for the Martin Luther King holiday.

Crude oil prices witnessed some profit-taking on worries the spread of increasingly tight lockdowns globally would hurt demand.

Here are the key events due later this week:

  • China - GDP - Q4 & Industrial Production - Monday
  • EU - Economic Sentiments - Tuesday
  • US - Crude Oil Inventory - Wednesday

Back home, GAIL and Tata Steel Long Products will be among the top buzzing stocks today.

Market participants will also track the Rs 46.3 billion IPO by Indian Railway Finance Corporation (IRFC), which will open for subscription today.

To know the top cues in today's stock market session, check out the pre-open commentary here.

Stay tuned for more updates on Indian stock markets in the upcoming commentary.


IRFC IPO, GAIL Share Buyback, and Buzzing Stocks Today
Pre-Open

Indian share markets witnessed heavy selling pressure on Friday, pausing the record rally, with all sectors barring telecom reeling under pressure.

Benchmark indices fell tracking weak Asian markets despite announcement of US$ 1.9 trillion stimulus package proposal from US President elect Joe Biden.

At the closing bell on Friday, the BSE Sensex stood lower by 549 points. Meanwhile, the NSE Nifty ended down by 162 points.

Tech Mahindra and HCL Tech were among the top losers.

The BSE Mid Cap index ended down by 1.3%, and the BSE Small Cap index ended down by 1.1%.

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On the sectoral front, IT stocks, realty stocks and oil & gas stocks were among the hardest hit.

At 7:50 am today, the SGX Nifty was trading down by 34 points, or 0.23% lower at 14,426 levels. Indian share markets are headed for a negative opening today following the negative trend on SGX Nifty.

Gold prices were trading up by 0.2% at Rs 49,289 per 10 grams at the time of closing stock market hours on Friday.

To know more about gold, check out our detailed article on how to invest in gold here: How to Invest in Gold?

Speaking of stock markets, in his latest video, Rahul Shah, Co-Head of Research at Equitymaster discusses how to alternate between a deep value portfolio and gold to earn great returns.

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In the video below, Rahul discusses how to combine the two in a smart way and benefit from the individual strengths of each asset class.

Tune in here to find out more:

5 Factors Why Sensex and Nifty Fell Over 1% on Friday

Weak Global Cues: Asian share markets tumbled in afternoon trade on Friday, reversing earlier gains as rising Covid-19 cases in China reinforced investor concerns over the prospects for a global economic recovery. Japan's Nikkei snapped a five-session rally, slipping from a more than 30-year high hit in the previous session.

European stocks were also trading on a cautious note as the prospect of tighter lockdowns in Germany and France as well as new Covid-19 restrictions in China cut into optimism about a global economic recovery.

All Sectoral Indices in Red: Barring telecom stocks, all sectoral indices witnessed huge selling pressure on Friday. IT and oil & gas stocks were among the hardest hit.

Profit Booking: Share market succumbed to profit-booking as valuations stand near-record high levels.

Our editors have been pointing out for many weeks now about the risky nature of the market as Covid-19 remains an overhang and the economic outlook remains uncertain.

Retail Prices Fall Sharply in December: India's consumer price index (CPI) inflation cooled in December 2020 as prices of kitchen staples eased, and would have been much lower but for a rise in retail prices of rice, pulses and cooking oil, latest data show.

The rise in CPI in December 2020 was the slowest since September 2019 and was also below the 6% mark for the first time since March 2020.

Falling Oil Prices: Crude oil prices fell on Friday as concerns about Chinese cities in lockdown due to coronavirus outbreaks tempered a rally driven by strong import data from the world's biggest crude importer and US plans for a large stimulus package.

We will keep you updated on how these factors develop in the coming days and what effect they have on Indian stock markets. Stay tuned!

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Top Stocks in Focus Today

GAIL will be among the top buzzing stocks today.

Public sector utility GAIL announced share buyback of 6,97,56,641 equity shares at a price of Rs 150 for an aggregate consideration of Rs 10.46 billion.

The company's board also approved payment of interim dividend for the FY21 at Rs 2.50 per equity share on the paid-up equity share capital of the company.

The record date for dividend as well as for the purpose of share buyback has been fixed at 28 January 2021.

The government has asked at least eight state-owned companies to consider share buybacks as it scours for ways of raising funds to rein in its fiscal deficit.

The firms asked to consider share buybacks include miner Coal India, power utility NTPC, and minerals producer NMDC.

Tata Steel Long Products share price will also be in focus today as the company reported a consolidated net profit of Rs 3 billion for the quarter ended December (Q3FY21), on the back of strong operational performance. The Tata group company had posted a consolidated net loss of Rs 1.1 billion in the same period a year ago.

The company's revenue from operations grew 37% year-on-year (YoY) at Rs 13.6 billion as against Rs 9.9 billion in the corresponding quarter of the previous fiscal and its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin stood at 30.1% for the quarter.

IPO Buzz: Indian Railway Finance Corporation (IRFC) IPO Opens Next Week

In latest developments from the IPO space, the Indian Railway Finance Corporation (IRFC) initial public offer (IPO) is scheduled to open today, becoming the first public issue of 2021.

The issue will close for subscription on January 20, 2021.

According to the red herring prospectus (RHP), the issue is of up to 1.8 billion shares, comprising a fresh issue of 594 million equity shares and an offer-for-sale of up to 1.2 billion crore shares. The price band of the issue is in the range of Rs 25-26 per share of face value of Rs 10 apiece.

The bids for the issue can be made for a minimum of 575 equity shares and in multiples thereafter. Up to 50% of the net issue will be reserved for the Qualified Institutional Buyers (QIB) while the company has reserved not more than 35% of the issue for the retail investors. However, 15% of the issue will be reserved for the non-Institutional category.

The dedicated market borrowing arm of the Indian Railways will utilise the net proceeds towards augmenting the company's equity capital base to meet future capital requirements arising out of growth in business and general corporate purposes.

The shares of IRFC are proposed to be listed on BSE and NSE. DAM Capital Advisors, HSBC Securities and Capital Markets (India) Private, ICICI Securities and SBI Capital Markets are the book running lead managers to the offer, while KFin Technologies Private Ltd will be the registrar to the issue.

How this IPO pans out remains to be seen.

Note that there are at least 15 companies that may come out with their initial public offerings in the year 2021. These include Kalyan Jewellers, Suryoday Small Finance Bank, ESAF Small Finance Bank, Indigo Paints, Brookfield India Real Estate Trust, Barbeque Nation Hospitality, Home First Finance Company and Railtel Corporation of India.

Among these, companies such as Indigo Paints, Home First Finance, Brookfield REIT and Railtel Corporation of India are expected to launch their IPO in January.

How the IPO market performs in 2021 remains to be seen.

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

MSCI to Raise Weight of Bharti Airtel in February Quarterly Index Review

Index provider MSCI last week said that Bharti Airtel will be a part of its February 2021 quarterly index review while the National Securities Depository (NSDL) has updated the foreign investment limit for the company to 100% from 49%.

"The proforma foreign ownership limit and upward movement of the adjustment factor due to the foreign room will be implemented as part of the upcoming February 2021 Quarterly Index Review," said MSCI.

The MSCI quarterly review will be announced on February 9 and will be effective from March 1.

In January 2020, Bharti Airtel had got approval from the Department of Telecommunications to increase its foreign investment limit to 100% of the paid-up capital. However, some of its subsidiaries were awaiting approvals. As a result, there was a weightage drop in MSCI index rebalancing in August 2020 which caused significant outflows.

Then on January 12, 2020, the company said it had received approvals for its relevant downstream investments and it was initiating the process to revise its foreign investment limit, as notified to its depositories, to 100% with immediate effect.

The revision of foreign investment limit is expected to lead to around US$ 700 million worth of inflow in Bharti Airtel due to increase in MSCI weightage.

How this pans out remains to be seen. Meanwhile, stay tuned for more updates from this space.

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