Share Market Highlights: Sensex ends above 52,900, Nifty at 15,853; Tech Mahindra, Infosys, IT stocks surge

BSE Sensex and Nifty 50 trimmed gains, minutes ahead of the closing bell but managed to close in the green. Smallcap indices outperformed benchmarks.

Index big-wigs such as Reliance Industries, HDFC and HDFC Bank were all down in the red ahead of the closing bell. 

Bank Nifty was down in the red ahead of the closing bell, giving up all gains. The index slipped 55 points or 0.15%.

Sensex was trading flat with a positive bias with minutes left before the closing bell. Nifty was still holding above 15,800.

Zomato's Rs 9,375 crore IPO has been subscribed 57% so far on day 1. Retail investors have oversubscribed their portion. 

Often called the fear gauge of domestic stock markets, India VIX, fell 0.35% with minutes left before the day's closing bell. 

"Although recently a lot of such attempts have failed, we hope the benchmark index to surpass the sturdy wall of 15900 convincingly to reach the milestone of 16000. As we have been reiterating, if this achievement has to happen, the banking space needs to step in and yesterday lot of marquee names showed some promising signs," said Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking.

Nifty Smallcap 50 index is outperforming broader markets and benchmarks. The index is up 0.81% ahead of the closing bell while Nifty 50 is up 0.30%.

'The popularity of Zomato IPO has reached the roof top as the brand has attached with the emotions of the general public while its financials and demanding price is telling a different story. There is a heat for the Zomato IPO in the market due to consumer-friendly offerings which may deliver at most 5% of listing gains as retail quota will invest more in the IPO. The IPO is aggressively priced and demanding an EV/Sales of almost 20x.  The entry of tech-giant Amazon in the food delivery business is expected to delay Zomato’s financials to turn profitable. Therefore, subscribing Zomato for long term investment is not a ‘fit and proper’ bet as it needs to prove itself on various parameters.  There is no need to gung-ho over the company and subscribe the IPO as the investors can get the platform in their investment basket at similar or lower prices as well post listing,' said Kaushlendra Singh Sengar Founder & CEO at INVEST19.

"FIIs were seen covering their short positions along with Bank Nifty seeing a 7% closing in open positions. Options data saw a shift in Focus from rangebound to a positive outlook. Bias remains positive above 15,800 with supports at 15,748 and 15,690. Expect Bank Nifty to shift gears above 35,815," said Rahul Sharma, Director & Head of Resrach, JM Financial. 

Mindtree’s share price soared 9.3% on Wednesday to trade at Rs 2,728 per share as investors reacted to the more than 61.2%  on-year jump in net profit of the IT company. While the stock price rose higher, analysts were mixed on the outlook as some advised selling the stock citing unsustainable margins, other asked investors to buy more shares banking on the accelerated digital adoption globally. Mindtree’s share price has soared 62% so far this year, in addition to the 136% rally in the stock between April and December last year.

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Zomato IPO has been subscribed 200% by retail investors so far on the first day of bidding. QIBs have subscribed 10% of their quota and NIIs have bid for 8% of the reserved portion. Employees of Zomato was bid for 7% of the portion reserved for them.

Zomato's IPO has been subscribed 41% so far. Retail investors have oversubscribed their portion 1 times while QIBs and NIIs have subscribed to their respective quotas 0.04 times and 0.07 times. 

Sensex and Nifty were seen trimming gains at this hour. Sensex was still in the green while Nifty 50 was above 15,800, but were down from intra-day highs. 

India VIX, the volatility gauge, was up 0.91% on Wednesday. The fear gauge accompanied benchmark indices and broader markets.

Among sectoral indices, Nifty Auto, Nifty FMCG, Nifty PSU Bank, and NIfty Realty were down in the red while all other sectoral indices surged higher. Bank Nifty was up 0.07%.

Clean Science and Technology, whose Rs 1,546.62-crore IPO subscribed 93.41 times, will finalise its basis of share allotment on Wednesday, 14 July 2021. The stocks are likely to make their share market debut next week on 19 July 2021. The initiation of refunds or unblocking of funds from ASBA accounts will take place on 15 July 2021. While the equity shares will be credited to depository accounts on 16 July 2021. The offer was sold from July 7-9, at the price band of Rs 880-900 per equity share of face value Re 1 each.

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Zomato founder Deepinder Goyal could not hide his excitement, as investors rapidly subscribe to the food delivery giant’s IPO on the first day of bidding. Deepinder Goyal took to social media website Twitter and said that he had just ordered a triple breakfast from Zomato, claiming he was stress eating as Zomato lined up to become the first homegrown tech start-up to enter the stock exchanges. Deepinder Goyal was joined by the ever-so-witty official handle of Zomato, dropping subtle one-liners in an attempt to remind people of the IPO.

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Retail investors have oversubscribed their portion of Zomato's initial public offer. So far retail investors have bid for 1.09 times the portion reserved for them. QIBs are yet to arrive on the scene while NIIs have bid marginally. 

GR Infraprojects IPO share allotment is likely to be finalised on Wednesday, 14 July 2021. The Udaipur-based firm IPO was subscribed 102.58 times over the 81.23 lakh shares that were on offer. In the grey market on Wednesday, GR Infraprojects shares were quoting at a premium of Rs 590 over the issue price of Rs 828-837 per share. The shares were trading at Rs 1,427 apiece, implying a premium of over 70 per cent over the IPO price, according to the people who deal in shares of unlisted companies. GR Infraprojects will make its stock market debut on Monday, 19 July 2021.

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Excess stocks of skimmed milk powder (SMP) have become a matter of concern for Maharashtra’s milk sector. The state’s inventory of SMP has reached nearly 50,000 tonnes. As a result, dairy owners in the state say that they are not in a position to hike milk procurement prices for farmers. Dairies in the state pay farmers Rs 23-24 per litre. Before the lockdown, dairy farmers were being paid a relatively higher procurement price of Rs 30-35 per litre.

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Once again the index has opened on a tepid note. The range-bound movement of the Nifty is challenging and testing the patience of traders! Until we do not get past either level of this range which is currently between 15400 and 15900, we will not witness momentum and a one sided trading opportunity. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

Zomato has a robust operating model and a strong market penetration, making it one of the leading food service platforms in India. It's mobile application is the most downloaded application in India, in each of the last three fiscal years. We believe a better service mix and a robust operating model will accelerate the revenue growth momentum. With growth expected to pick up in the forthcoming years after a pandemic, and the rising use of online platform, we expect the company to breakeven at operating levels in FY22, making the IPO more lucrative. Naveen Kulkarni, Chief Investment Officer, Axis Securities

Domestically, so far rising crude oil prices and firm dollar strength have weighed on the rupee. The momentum in the USDINR pair has turned like a roller coaster ride, where global pressure could push the pair towards 74.90 levels while any steep fall can get capped on account of a channel of IPO's lined up in coming sessions. That apart, WPI inflation today will be watchful for further directional clues. As the overall sentiments remain cautious, momentum in the rupee could also be trapped within its present narrow range of 74.50-74.90 levels before any big market trigger takes it towards 75.20-75.50 levels in the upcoming time. Amit Pabari, managing director, CR Forex Advisors

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading higher on Wednesday, even as yellow metal traded flat in global markets. On Multi Commodity Exchange, gold August futures were trading Rs 86 or 0.18 per cent up at Rs 47,975 per 10 gram, as against the last close of Rs 47,889. MCX gold reclaimed Rs 48,000 soon after opening. MCX silver September futures were flat at Rs 69,087.

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Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading higher on Wednesday, even as yellow metal traded flat in global markets. On Multi Commodity Exchange, gold August futures were trading Rs 86 or 0.18 per cent up at Rs 47,975 per 10 gram, as against the last close of Rs 47,889. MCX gold reclaimed Rs 48,000 soon after opening. MCX silver September futures were flat at Rs 69,087.

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Maruti Suzuki, Axis Bank, Housing Development Finance Corporation (HDFC), ICICI Bank, Kotak Bank were among top index laggards

Barring Nifty IT, Nifty Media and Nifty Pharma, all the sectoral indices were trading in the red. Bank Nifty was down over half a per cent, while Nifty Financial Services fell 0.5 per cent

Larsen & Toubro (L&T), Tech Mahindra HCL Tech, Sun Pharma, Power Grid Corporation of India, TCS, Infosys were among top Sensex gainers.

BSE Sensex was trading 88 points or 0.17 per cent down at 52,682, while the Nifty 50 index gave up 15,800 in the opening deals

Domestic markets look to be soft as of now. Notably, benchmark Nifty appears to be consolidating in the range of 15,600-15,900. However, we continue to believe that any meaningful correction in the market should be taken as an opportunity to get in quality stocks. Visible improvement in key economic data including IIP, import-export business momentum and visible traction in overall economic activities in June indicate healthy corporate earnings for 1QFY22E despite second wave of COVID-19. Further, announcement of slew of measures by Finance Ministry to spur economic activities augurs well. In our view, progress of monsoon, 1QFY22E corporate earnings and COVID-19 positivity rates will be in focus in the near term. Further, higher government’s capex and revival in industrials’ capex should aid economic recovery. Binod Modi, Head Strategy at Reliance Securities

On Wednesday 15900/15930 (53000/53100) would be major hurdles and support would be at 15730/52500 and 15700/52400 levels. Buying on dips would be the ideal strategy for the trades. Sector-specific, uptrend continuation texture likely to continue in the Banking and Metal stocks.

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Domestic equity markets resumed moving upwards yesterday as Sensex and Nifty surged 0.76% each on Tuesday. S&P BSE Sensex closed the day’s trade at 52,769 while the 50-stock NSE Nifty was at 15,812. On Wednesday morning, SGX Nifty was down in the red signalling some weakness ahead of the opening bell. Global cues were negative after Wall Street equity indices ended in the red. Asian peers were also down with losses. Technical analysts continue to see upside potential for domestic markets. “One may expect further upside towards 15900-15915 levels in the short term before showing next round of consolidation,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

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BSE-listed companies such as Infosys, Dodla Dairy, Craftsman Automation, L&T Technology Services, 5paisa Capital, Alliance Integrated Metaliks, Essar Securities, Hatsun Agro Product, Mishtann Foods, Tasty Dairy Specialities, Tinplate Company of India, and Vikas EcoTech will release quarterly earnings on July 14.

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Zomato, the online food delivery behemoth, has managed to raise Rs 4,196 crore from a total of 186 anchor investors just ahead of its initial public offering (IPO) which opens today. Marquee investors such as Tiger Global Investment Fund, Blackrock Global Funds, Fidelity Funds, JP Morgan, Morgan Stanley, T. Rowe Price, SBI, Kotak funds, Government of Singapore, Goldman Sachs, ICICI, HDFC, and UTI MF have invested in the company through the anchor investor portion. Zomato plans to raise Rs 9,375 crore in the IPO (including anchor investments), comprising a fresh issue and an offer for sale by existing investors.

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Zomato, India’s homegrown unicorn, would be the first of many Indian tech startups to list on the stock exchanges. Naukri.com’s parent company, Info Edge holds a stake of about 18.55 per cent in the food delivery platform. The average cost of acquisition of equity shares for the selling shareholders is Rs 1.16 per equity share. The weighted average return on net worth for the last three fiscals is 49.09 per cent. Research and brokerage firms such as Motilal Oswal Financial Services and Ventura Securities have ‘subscribe’ rating, while Kotak Securities and Axis Securities have not given ratings to the IPO.

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Bond yields jumped and global share prices slipped after posting new highs on Tuesday as the biggest hike in US inflation in 13 years rattled investors. The Dow Jones Industrial Average fell 0.31 per cent, the S&P 500 lost 0.35 per cent and the Nasdaq Composite dropped 0.38 per cent.

Asian stock markets were mostly trading in the red in the early morning trade on Wednesday. Japan’s Nikkei 225 fell 0.14 per cent while the Topix index was flat. South Korea’s Kospi dipped 0.26 per cent.

Food delivery platform Zomato raised Rs 4,197 crore from 186 anchor investors on Tuesday ahead of IPO. The company has allotted 55.22 crore equity shares to anchor investors for Rs 76 per equity share. Zomato’s Rs 9,375 crore initial public offering is set to open on Wednesday amid buzz of strong response from global institutional investors.