Bloodbath on Dalal Street: 6 Reasons Why Sensex Nosedived 1,939 Points Today
Closing

Indian share markets witnessed a sharp sell-off today and ended deep in the red.

The selling dragged the benchmark Sensex lower by more than 2,148 points and made the Nifty trade below 14,500-mark. For the Sensex, it was the worst daily fall since May 2020.

At the closing bell, the BSE Sensex stood lower by 1,939 points (down 3.8%).

Meanwhile, the NSE Nifty ended down by 568 points (down 3.8%).

ONGC and Mahindra & Mahindra were among the top losers today.

SGX Nifty was trading at 14,524, down by 656 points, at the time of writing.

The BSE Mid cap index and the BSE Small cap index ended down by 1.8% and 0.8%, respectively.

On the sectoral front, banking stocks and finance stocks were among the hardest hit.

The banking sector and finance sector ended their day down by 4.9% and 4.6%, respectively.

US stock futures are trading flat today indicating a flattish opening for Wall Street indices.

The rupee is trading at 73.76 against the US$.

Gold prices are trading up by 0.5% at Rs 46,460 per 10 grams.

{inlineads1}

Here are Top 6 Factors Why Indian Stock Markets Crashed Today:

Weak Global Cues: Asian share markets witnessed huge selling after Wall Street's main indexes tumbled, following a steep rise in benchmark US Treasury yields.

The Hang Seng ended down by 3.6% while the Shanghai Composite slid 2.1%.

Rising Bond Yields: A jump in bond yields both in the US and India have unsettled investors. As per media reports, US Treasury yields touched their highest levels since the outbreak of coronavirus pandemic on expectations of a strong economic expansion and related inflation.

Not only in the US, but bond yields are also rising in many other top economies, including Japan.

Rising Covid-19 Cases: Covid-19 cases have started spiking in some regions of India, spooking investors who believed the crisis was all but over.

The daily rise in coronavirus infections in India was recorded above 15,000 after nearly a month taking the country's total tally of COVID-19 cases to 1,10,46,914, according to the Union Health Ministry data updated yesterday.

Rising Geopolitical Tensions: Rising geopolitical tension also weighed on the market sentiment globally. As reported by Reuters, US President Joe Biden on Thursday directed US military airstrikes in eastern Syria against facilities belonging to what the Pentagon said were Iran-backed militia, in a calibrated response to recent rocket attacks against US targets in Iraq.

GDP Data: Stock markets were also cautious ahead of the GDP data that is to be released today.

The NSO (National Statistical Office) will release gross domestic product (GDP) growth estimates for the third quarter (October-December) 2020-21 later today. Many market participants have placed high chances on India's real GDP growing at more than 0% in October-December 2020, marking a return to a positive trajectory after two-quarters of a deep slide.

Profit Booking: Apart from the above, losses were also seen as share market succumbed to profit-booking.

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!

{inlineads2}

Speaking of the current stock market scenario, note that the BSE Sensex crossed the 52,000-mark last week on Monday for the first time. Sensex's P/E ratio is at a two decade high of around 36x.

Have a look at the chart below which shows Sensex P/E over the years.

So, should Sensex valuations at nearly two-decade high be a reason for you to abandon stock picking?

Here's what Tanushree Banerjee wrote about it in one of the editions of Profit Hunter:

  • Sensex at 52,000 or higher should not change the way you buy stocks.

    You must look for only the most solid businesses that can confront all odds.

    And you must not compromise on margin of safety in valuations.

    A solid wealth building plan needs thorough research. You will also need a commitment to consistently invest in a few great stocks at the right times.

    There may be very few such stocks that are actionable but ones that do qualify could be your starting point.

In news from the IPO space...

MTAR Technologies, a precision engineering solutions company, is set to launch its initial public offering (IPO) for subscription next week on March 3, 2021.

Through this issue, the company looks to raise Rs 5.9 billion, at the upper end of the price band. The issue will close for subscription on March 5, 2021. The issue comprises a fresh issue of 21.48 lakh equity shares by the company and an offer for sale (OFS) of 82.24 lakh equity shares by promoters and investors.

The company has fixed the price band of the issue at Rs 574-575 per share of face value of Rs 10 each.

The Hyderabad-based company has precision engineering capabilities to build nuclear and pressurized water reactors, aerospace engines, missile systems, aircraft components and many such other critical components and assemblies.

{inlineads3}

MTAR supplies high-precision machine fabricated systems to DRDO Labs, Bharat Dynamics, HAL, BEL, etc., and other defence R&D.

In the calendar year 2021, MTAR Technologies would be the ninth public issue after Indian Railway Finance Corporation (IRFC), Indigo Paints, Home First Finance Company India, Stove Kraft, Brookfield India REIT, Nureca, RailTel Corporation of India and Heranba Industries.

Reports state that the recent government initiatives such as Make in India, India aiming to become an exporter in defense sector, rising budgetary allocations for defense and space sectors, provide a great opportunity to companies such as MTAR Technologies.

How the above IPO sails through remains to be seen. Meanwhile, stay tuned for more updates from this space.

In news from the macroeconomic space...

The Reserve Bank of India (RBI) in its report on currency and finance on February 26 said that the present inflation target of 2 to 6% is appropriate for the next five years to ensure price stability.

The observation is significant amid speculation that the government may ask the central bank to relax inflation targets to revive the economy.

"Threshold inflation above which growth is unambiguously impaired ranges between 5 and 6% in India, indicating that an inflation rate of 6% is the appropriate upper tolerance limit for the inflation target," the report said.

A lower bound of above 2% can lead to actual inflation frequently dipping below the tolerance band, while a lower bound below 2% will hamper growth, indicating that an inflation rate of 2% is the appropriate lower tolerance bound, the report said.

Last month, there were reports that the government was looking to raise the CPI-based inflation target under the monetary policy framework by a notch to 5%, with a tolerance level of plus and minus 2% from April 1 to give RBI more room to cut policy rates to boost growth in the economy.

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

Moving on to stock specific news...

Nava Bharat Ventures was among the top buzzing stocks today.

Nava Bharat Ventures share price witnessed buying today after the board approved the proposal for buyback of fully paid up equity shares of face value of Rs 2 each for an aggregate amount not exceeding Rs 1.5 billion.

The board of directors on February 26 approved the buyback of fully paid-up equity shares of face value of Rs 2 each for an amount not exceeding Rs 1.5 billion, which is 5.05% and 3.94% of the total paid-up equity share capital and free reserves of the company, Nava Bharat said in an exchange filing.

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

Speaking of buybacks, as a shareholder in cash rich companies, you should not only be wary of expensive buybacks. But if possible use it to your advantage to rake in some cash.

As per Rahul Shah, co-head of Research, investors should not assume buybacks are always good. Here's an excerpt of what he wrote:

  • The reason behind the buyback must be investigated. At the end of the day, an increase in earnings should be more a function of the inherent robustness of the business, as that's what will help it continue to grow at a healthy pace.

Speaking of stocks, India's #1 trader, Vijay Bhambwani talks about how you can profitably trade stocks, commodities, and currencies on the same day, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

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


Sensex Crashes 1,800 Points; Nifty Trades Below 14,700 Mark
02:30 pm

Share markets in India witnessed a sharp sell-off during noon hours today that dragged the benchmark Sensex lower by more than 1,800 points and made the Nifty go below 14,600 levels.

Most of this selling pressure is led by banking and financial stocks with the Nifty Bank, PSU Bank and Financial Services indices all falling up to 5%.

Losses are also seen on the back of weak global cues. Most Asian markets traded lower today after Wall Street's main indexes tumbled, following a steep rise in benchmark US Treasury yields.

As per media reports, US Treasury yields touched to their highest since the outbreak of coronavirus pandemic on expectations of a strong economic expansion and related inflation.

Currently, the BSE Sensex is trading down by 1,464 points, down 2.9%, at 49,574 levels.

Meanwhile, the NSE Nifty is presently trading down by 423 points.

The BSE Mid Cap index is trading down by 1.4%, while the BSE Small Cap index is trading down by 0.5%.

{inlineads1}

On the sectoral front, losses are largely seen in the banking sector and finance sector which are trading down by 4.2% and 3.9%, respectively.

Kotak Bank and Mahindra & Mahindra are among the top Nifty losers today.

IIFL Finance is among the top buzzing stocks today.

IIFL Finance said it will launch a public issue of bonds next week to raise up to Rs 10 billion to augment its capital base.

Backed by Fairfax and CDC Group, IIFL Finance will issue unsecured redeemable non-convertible debentures (NCDs), with a base issue size of Rs 1 billion and a green-shoe option to retain oversubscription of up to Rs 9 billion.

The public issue of bonds will open on March 3, 2021 for the purpose of business growth and capital augmentation.

More details to follow in the upcoming commentary.


Sensex Trades Over 1600 Points Lower; Dow Futures Down by 103 Points
12:30 pm

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

The BSE Sensex is trading down by 1692 points, down 3.3% at 49,330 levels.

Meanwhile, the NSE Nifty is trading down by 473 points.

Sun Pharmaceuticals is among the top gainers today. Mahindra & Mahindra and ICICI Bank are among the top losers today.

The BSE Mid Cap is trading down by 2.2%.

The BSE Small Cap index is trading down by 1.2%.

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

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

{inlineads1}

Nasdaq Futures are trading down 113 points (down 0.8%) while Dow Futures are trading down by 150 points (down 0.5%)

The rupee is trading at 73.04 against the US$.

Gold prices are trading down 0.4% at Rs 46,060 per 10 grams.

Gold struggled in Indian markets for the fourth day in a row and remained near 8-month lows. On MCX, gold futures were up 0.1% to Rs 46,297 per 10 grams.

Note that the precious metal has been under pressure since the start of this year amid hopes of faster global economic recovery and rising US bond yields. As compared to August highs of Rs 56,200, gold is down about 18% or about Rs 10,000.

In global markets, gold prices were flat today but were on track for their second straight weekly decline as rising US Treasury yields dented the appeal of bullion which does not pay any interest. Spot gold was flat and is on track for 0.6% decline for the week so far.

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

{inlineads2}

Moving on to stock specific news...

Among the buzzing stocks today is DHFL.

DHFL said that it has received no objection from the Reserve Bank of India (RBI) and has filed an application with the National Company Law Tribunal (NCLT) for submission of the resolution plan of Piramal Capital & Housing Finance.

The resolution plan has been approved by the Committee of Creditors (CoC).

In November 2019, the RBI had referred DHFL, the third-largest pure-play mortgage lender, to the NCLT for insolvency proceedings. It was the first finance company to be referred to NCLT by the RBI using special powers under Section 227 of the Insolvency and Bankruptcy Code (IBC).

Prior to that, the company's board was superseded and R Subramaniakumar was appointed as the administrator. He is also the resolution professional under the IBC.

The company is being investigated by the ministry of corporate affairs from December 2019 through the Serious Fraud Investigation Office (SFIO). The Enforcement Directorate is also probing the company in connection with loans given by it to certain borrowers.

The financial creditors have claimed an outstanding worth Rs 870 billion from DHFL.

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

At the time of writing, DHFL share price was trading up by 4.8% on the BSE.

{inlineads3}

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani talks about how you can profitably trade stocks, commodities, and currencies on the same day, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

Moving on to news from the automobile sector...

Ashok Leyland to Acquire Nissan International's 38% Stake in Hinduja Tech

Ashok Leyland has entered into a share purchase agreement with Nissan International Holding BV to acquire the latter's stake in Hinduja Tech (HTL).

The commercial vehicle major informed the BSE that it has entered into a share purchase agreement with Nissan International Holding BV to acquire 58.5 million shares for a total consideration of Rs.702 million constituting 38% in the paid-up share capital of HTL.

Consequent to the aforesaid acquisition, HTL will become a wholly-owned subsidiary of the company.

HTL works in the information technology (IT) & ITeS space. In FY20, the company reported a profit of Rs 159 million as against Rs 143 million in the year ago period. The company's revenue stood at Rs 2.3 billion in 2019-210 as compared to Rs 2.1 billion in the corresponding period of the last year.

In 2014, Nissan International Holdings, a Dutch investment arm of Japanese automaker Nissan, came as the strategic investor on Hinduja Tech.

Founded in 2009, Hinduja Tech, formerly known as Defiance Technologies, provides engineering, manufacturing and enterprise (EME) services and solutions for automotive, aerospace, defence, industrial and general manufacturing industries.

We will keep you posted on more updates from this space. Stay tuned.

Speaking of the automobile sector, note that the sector has rebounded sharply from its March lows.

The auto index entered the greed phase in September 2019 and will stay there until December 2021. This means there is still a lot of fuel left for auto stocks.

How automobile stocks perform in the coming months remains to be seen.

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


Sensex Tumbles 800 Points Tracking Global Selloff; Banking & Finance Stocks Bleed
09:30 am

Asian stock markets opened sharply lower today after Wall Street's main indexes tumbled, with technology-related stocks under pressure following a steep rise in benchmark US Treasury yields.

The Nikkei is trading down by 2.4% while the Hang Seng is down 2.5%. the Shanghai Composite is trading lower by 1.8%.

In US stock markets, Wall Street indices came under pressure as a rapid rise in Treasury yields spooked equity investors.

US treasury yields rose to fresh one-year highs. The yield on the 10-year US treasury note broke above 1.45% for the first time since February 2020 on Thursday, adding to recent advances.

The Nasdaq underperformed with a drop of 3.5% for its worst session since October as tech stocks renewed their declines.

The Dow Jones Industrial Average ended lower by 1.8%, after the index reached a record closing high a day earlier as cyclical and value stocks maintained their leadership positions.

{inlineads1}

Back home, Indian share markets have opened on a negative note, following the trend on SGX Nifty and amid weak signals from Asian markets.

All eyes today will be on the GDP numbers for the third quarter of the current financial year, scheduled to be released later in the day. The Indian economy witnessed GDP de-growth of 24% and 7.5%, respectively, during Q1 and Q2.

Market participants will also track RailTel Corp of India as the company will make its stock market debut today.

The BSE Sensex is trading down by 785 points. Meanwhile, the NSE Nifty is trading lower by 223 points.

NTPC is among the top gainers today. IndusInd Bank, on the other hand, is among the top losers today.

The BSE Mid Cap index has opened down by 1.4%. The BSE Small Cap index is trading lower by 1.1%.

All sectoral indices are trading on a negative note with stocks in the banking sector and finance sector witnessing most of the selling pressure.

Shares of RCF and Hindustan Copper hit their 52-week highs today.

The rupee is trading at 72.97 against the US$.

Gold prices are trading up by 0.1% at Rs 46,242 per 10 grams.

{inlineads2}

Speaking of stock markets, in his latest video for Fast Profits Daily, India's #1 trader Vijay Bhambwani talks about how to get started on the path to daily trading profits.

How do you go about this and what should you know even before you get started? Vijay answers these questions in the video below.

Tune in to find out more:

In news from the steel sector, Indian steel mills have renegotiated fresh auto contracts starting January with a price increase of at least Rs 5,500 - 6,200 per tonne on the back of an adjustment toward spot and contract prices and due to higher input costs.

Auto contracts are usually half-yearly, and were supposed to be renewed in October. However, due to the pandemic, steel mills had cut prices by around Rs 6,000 per tonne in the auto contracts.

"We have hiked prices by around Rs 6,200 per tonne in the auto contracts starting this January as the cost for the company has gone up substantially," said R.K. Goyal, managing director, Kalyani Steels. For the last contract, it had hiked prices by around Rs 4,200 per tonne, he added.

{inlineads3}

Goyal said that the contracts have been accepted by companies like Mahindra & Mahindra (M&M) and Tata Motors.

Maruti Suzuki and Hyundai have still not accepted the terms, according to the steelmakers.

Note that a quarter of Tata Steel's domestic sales are toward autos, and the numbers are similar for JSW Steel.

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

Moving on, Eveready Industries is among the top buzzing stocks today.

As per an article in a leading financial daily, the Burman family, the single-largest investor in Eveready Industries with a 20% stake, may become joint promoters of the battery maker along with the Khaitan family.

Here's an excerpt from the article:

  • "After a year of discussions between the Khaitans and the Burmans, the two families are considering an option to jointly control the group."

The shareholding of the Khaitan family plunged to just 4.5% from 44.1% over the past two years as lenders sold shares of Eveready pledged with them after the promoter group defaulted on payments.

The promoter group pledged their holdings in Eveready and tea producer McLeod Russel to avail of loans and repay debts of McNally Bharat Engineering.

Last year in August, Eveready's shares, held by Williamson Magor (an Eveready promoter entity), were pledged with IndusInd Bank for securing the outstanding dues of Seajuli Developers and Finance, the borrower company. The bank invoked the pledge held in the Eveready shares for the recovery of its dues from Seajuli.

As per the article, the dramatic decline in the promoter holdings in Eveready opened the dry-cell battery maker to the risk of a hostile takeover. As lenders invoked pledges, the Burman family, which runs Dabur, stepped in as a white knight to buy out the shares from the open market to avert such a possibility.

Earlier, the Burman family was planning to boost its stake in Eveready, but called off the plan after the stock price surged in the past year.

Reports state that the surge in share price is largely on hopes that there would be an open offer in which public shareholders will be able to tender their shares if there is a hostile takeover or if the Burmans become the promoters of Eveready.

Eveready Industries share price has opened the day up by 3.3%.

Speaking of smallcap stocks, since the lows in March 2020, the smallcap index has gained more than 100%.

The BSE Smallcap index is trading above the levels seen in January 2018, when smallcaps had peaked.

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

Have a look at the history of previous smallcap crashes and rebounds over the last two decades...


As you can see, every big fall in the smallcap index was followed by a sharp up move, a minimum gain 200%. Twice the rebounds were just shy of touching 300%.

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.

Also speaking of smallcaps, in one of his videos for Fast Profits Daily, Brijesh Bhatia talks about why smallcap stocks will outperform the Nifty 50 index and for how long such outperformance could last.

As per Brijesh, the  smallcap rally has only just begun.

You can watch the video here: Smallcaps Will Outperform the Nifty

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


SGX Nifty Trades 279 Points Lower; Indicates Gap-Down Opening for Indian Stock Markets
SGX Nifty

The SGX Nifty opened on a negative note today.

At 8:10 am, it was trading down by 279 points, or 1.9% lower at 14,900 levels.

Trends on SGX Nifty indicate a gap-down opening for Indian stock markets.

Asian stock markets opened sharply lower today after Wall Street's main indexes tumbled, with technology-related stocks under pressure following a steep rise in benchmark US Treasury yields.

The Nikkei is trading down by 2.6% while the Hang Seng is down 2.2%.

In US stock markets, Wall Street indices came under pressure as a rapid rise in Treasury yields spooked equity investors.

US treasury yields rose to fresh one-year highs. The yield on the 10-year US treasury note broke above 1.45% for the first time since February 2020 on Thursday, adding to recent advances.

All three major indexes fell, and the Nasdaq underperformed with a drop of 3.5% for its worst session since October as tech stocks renewed their declines.

The Dow Jones Industrial Average ended lower by 1.8%, after the index reached a record closing high a day earlier as cyclical and value stocks maintained their leadership positions.

{inlineads1}

US stock futures are trading flat today amid news that the Biden administration had launched airstrikes in Syria, targeting facilities near the Iraqi border used by Iranian-backed militia groups.

Dow Futures are trading up by 15 points while Nasdaq futures are down 0.3%.

Crude oil prices held near 13-month highs, with profit-taking limited by assurance that US interest rates will stay low and a sharp drop in US crude output last week due to the winter storm in Texas.

Here are the key events due later today:

  • US - Baker Hughes Oil Rig Count
  • India - GDP Q3 & Infrastructure Output
  • India - Fiscal Deficit, Bank Deposits and Loan Growth & Forex Reserves

Back home, Axis Bank and Coal India will be among the top buzzing stocks today.

In his latest video for Fast Profits Daily, India's #1 trader Vijay Bhambwani talks about how to get started on the path to daily trading profits.

How do you go about this and what should you know even before you get started? Vijay answers these questions in the video.

You can watch the video here: Make Rs. 5,000 Per Day Trading the Market

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.


MTAR Technologies IPO, Cochin Shipyard's MoU with DCI, and Buzzing Stocks Today
Pre-Open

Indian share markets continued their positive trend during closing hours yesterday and ended their day on a firm note.

At the closing bell yesterday, the BSE Sensex stood higher by 257 points (up 0.5%).

Meanwhile, the NSE Nifty closed higher by 115 points (up 0.7%).

Coal India and UPL were among the top gainers.

ICICI Bank was among the top losers.

The BSE Mid Cap index ended up by 1.1%. The BSE Small Cap index ended up by 1.4%.

Sectoral indices ended on a positive note. Gains were largely seen in the energy sector and metal sector which ended the day up by 3.9% and 3.4%, respectively.

At 8:00 am today, the SGX Nifty was trading down by 274 points, or 1.8% lower at 14,900 levels. Indian share markets are headed for a gap-down opening today following the negative trend on SGX Nifty.

Gold prices for the latest contract on MCX are trading down by 0.1% at Rs 46,475 per 10 grams at the time of closing stock market hours yesterday.

{inlineads1}

Talking about Indian stock markets, Rahul Shah, co-head of Research at Equitymaster, in his latest video talks about how one should invest in the current times.

One of the biggest uncertainties in an uncertain world is a huge stock market crash.

Should one make an attempt to predict it or is there any other blueprint that an investor needs to follow?

Rahul discusses these points in the video below. Tune in to find out more:

Top Stocks in Focus Today

Coal India will be among the top buzzing stocks today.

As per a leading financial daily, Coal India is planning to invest Rs 1.43 lakh crore in 26 projects in new business areas. The new business areas will include solar wafer manufacturing, a greenfield aluminium project along with brownfield aluminium projects in a joint venture with NALCO, solar generation projects, and thermal power plants.

The company has received approvals from NITI Aayog, DIPAM for the solar water manufacturing and the greenfield aluminium projects. It has already prepared a draft market assessment report and plans for a special purpose vehicle (SPV) and aims to float tender for the JV by Q2FY22.

{inlineads2}

Axis Bank share price will also be in focus today.

This comes as the Insurance Regulatory and Development Authority of India (IRDAI) has given its formal approval for the acquisition of up to 12% stake in Max Life Insurance by Axis Bank and its subsidiaries, Axis Capital & Axis Securities (together Axis Entities).

The IRDAI approval was an integral step in this long-awaited joint venture transaction which was first announced in April 2020.

Market participants will also track Indiabulls Real Estate share price today.

The Competition Commission of India (CCI) has approved the proposed merger of NAM Estates and Embassy One Commercial Property Developments into Indiabulls Real Estate (IBREL).

IBREL as well as Embassy Group's arm NAM Estates and Embassy One Commercial Property Developments had entered into definitive merger documentation to amalgamate ongoing, completed, and planned residential and commercial projects of these two subsidiaries, a regulatory filing said.

{inlineads3}

IPO Buzz: MTAR Technologies to Launch IPO Next Week

In news from the IPO space...

MTAR Technologies, a precision engineering solutions company, is set to launch its initial public offering (IPO) for subscription next week on March 3, 2021.

Through this issue, the company looks to raise Rs 5.9 billion, at the upper end of the price band. The issue will close for subscription on March 5, 2021. The issue comprises a fresh issue of 21.48 lakh equity shares by the company and an offer for sale (OFS) of 82.24 lakh equity shares by promoters and investors.

The company has fixed the price band of the issue at Rs 574-575 per share of face value of Rs 10 each.

The Hyderabad-based company has precision engineering capabilities to build nuclear and pressurized water reactors, aerospace engines, missile systems, aircraft components and many such other critical components and assemblies.

MTAR supplies high-precision machine fabricated systems to DRDO Labs, Bharat Dynamics, HAL, BEL, etc., and other defence R&D.

In the calendar year 2021, MTAR Technologies would be the ninth public issue after Indian Railway Finance Corporation (IRFC), Indigo Paints, Home First Finance Company India, Stove Kraft, Brookfield India REIT, Nureca, RailTel Corporation of India and Heranba Industries.

Reports state that the recent government initiatives such as Make in India, India aiming to become an exporter in defense sector, rising budgetary allocations for defense and space sectors, provide a great opportunity to companies such as MTAR Technologies.

How the above IPO sails through remains to be seen. Meanwhile, stay tuned for more updates from this space.

Cochin Shipyard Signs Pact for Building Dredgers

Public sector company, Cochin Shipyard (CSL) has signed a memorandum of understanding (MoU) with the Dredging Corporation of India (DCI) and IHC Holland BV, a Dutch firm doing design and construction of dredgers, for making world-class dredgers.

The MoU was signed in the presence of the Minister of State for Ports, Shipping and Waterways, Mansukh Mandaviya, in Delhi, according to a press release.

The release said the DCI was in talks with the shipyard, which expressed its willingness to construct Trailing Suction Hopper Dredger (TSHD) adhering to the best designs and technologies available globally.

"The CSL and IHC Holland BV have arrived at an understanding to work together to provide locally built world-class dredgers. High-capacity dredgers in the range of 8,000 cubic metres to 12,000 cubic meters are complex equipment being built in India for the first time," the release quoted Madhu Nair, Chairman and Managing Director of the Cochin Shipyard.

Cochin Shipyard on Tuesday also said it has emerged as the lowest bidder for a Rs 100-billion contract by the Indian Navy, to build Next Generation Missile Vessels. The state-owned company has emerged as a forerunner in the Indian shipbuilding and ship repair industry that can build and repair the largest vessels in India.

Cochin Shipyard is the largest shipbuilding and maintenance facility in India. It is part of a line of maritime-related facilities in the port-city of Kochi, in the state of Kerala, India. Of the services provided by the shipyard are building platform supply vessels and double-hulled oil tankers.

We will keep you posted on more updates from this space. Stay tuned.

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