Driven by the easing of nervousness around the Evergrande crisis, the American Fed is meeting the results, buying through the DII and a positive macroeconomic environment; benchmarks hit new records last week. BSE Sensex rose 1,032.58 points, or 1.75%, to 60,048.47, and NSE Nifty jumped 268.05 points, or 1.52%, to 17,853.20, bringing the five-week gains to 8.5% in the indices.
The increased interest in index counters has led to an underperformance of the broader market. In the absence of major national indices, the market should focus on global developments and may experience some volatility given the F&O expiration in the coming week. The DII bought shares with a net worth of Rs 3,048 crore, while the FII sold shares with a net worth of Rs 8.38 crore during the week ended. The strong dynamism of revenue collection may help ensure that public capital expenditure for this fiscal year is very close to the budget estimate.
Tax cuts to stimulate growth are unlikely from now on. It is relevant to note that the Ministry of Finance removed the spending limitation of various ministries and central departments with immediate effect. Meetings with global rating agencies by finance ministry officials have reportedly been fruitful and sovereign rating upgrades are expected in the coming quarters, sources said. Prime Minister Narendra Modi’s three-day visit to the United States is expected to give a boost to key industries ranging from drones to 5G, semiconductors and solar power.
The short term trend will be dictated by the expiration of F&O, auto sales data, macroeconomic data, crude oil prices, the movement of the rupee and global indices like the unfolding of the Evergrande crises. . Bandh’s appeal launched on September 27 by farmers and unions received support from all opposition parties; is expected to have an impact on banking services, road and rail transport. The IPO market will also continue to buzz next week. Aditya Birla Sun Life AMC’s initial public offering, sold in the price range of Rs695-712 per share, will begin on September 29 and close in October.
1. Paras Defense and Space Technologies, which recorded record subscriptions, will likely debut on the stock exchange on October 1.
Heard on the Street: India is no exception to a global IPO frenzy, in which companies ranging from tech startups to jewelers and drug makers have raised around $ 476 billion globally this year. Liquidity, low interest rates and demand from retail investors are driving companies to go public. The Indian IPO market is in a binge eating and has reached 70,000 crore rupees and is expected to continue to grow as a series of companies align with their public offering in the coming months. Zomato, the online food delivery giant, is sort of the leader in this market growth. The startup went public in July, and despite its poor growth outlook and losses in consecutive years, its shares have climbed more than 70%. Paytm, India’s leading digital payments company, has filed its documents for the preliminary offer. With this public offering, the company expects to raise around 166 billion rupees ($ 2.2 billion). Additionally, if Paytm’s IPO can reach its expected level, it will be India’s largest IPO, surpassing Coal India’s 150 billion rupee public offerings in 2010. In Besides, e-commerce giant Flipkart is also planning an IPO.
According to reports, the company may go public as early as the fourth quarter of fiscal year 2021-2022. Additionally, digital education startup Byju’s, currently valued at $ 16.5 billion, is getting tips on how to take advantage of this “hot” market. If global investors are to choose an emerging market, the balance tilts in India’s favor after regulatory action in the Chinese internet ecosystem.
O&M / sector watch
Ahead of settlement week, based on benchmarks hitting new highs, the derivatives segment saw robust trading volumes. Maximum open call interest (OI) was observed at 18,500 followed by 18,000 and 17,900 strikes, while maximum OI put was observed at 17,000 followed by 17,500, 17,700 and 17,800 strikes. Call writing was seen at 18,500 then 18,000 & 17,900 strikes with an ending at 17,700 and 17,800 strikes, while the Put writing was seen at 17,900 then 17700 & 17,800 strikes with an ending at 17,600 strikes.
Auto sales figures for the month of September, which will start arriving from October 1, will be closely watched from the streets. Industry watchers believe sales should be affected by the chip shortage, but the same could improve towards the end of T4CY21. Tata Motors, Maruti Suzuki, Mahindra & Mahindra, Eicher Motors, Bajaj Auto, TVS Motor Company, Ashok Leyland, Hero Motocorp and Escorts will be in the spotlight.
Real estate stocks saw huge buying interest over the past week.
(The author is a stock market expert. He is the former vice-chairman of the AP Planning Board)