– Tata breaks HAL’s monopoly with first military aircraft deal
– RBI removes PCA restrictions on UCO Bank
– Indian economy picking up steam after second Coronavirus wave, says S&P
– Centre wants PSU control of Petronet, IGL to stay post BPCL open offer
Now lemme give you a quick glance on the state of the markets.
Dalal Street is likely to have a positive start this morning. Nifty futures on the Singapore Exchange traded 50 points lower at 8:20 hours (IST). Asian markets opened lower on Thursday as Wall Street falls weighed on the market, with investors adjusting their positions ahead of the settlement of futures and options this week. MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.99 per cent.
Elsewhere, the yield on 10-year Treasuries was at 1.34%. The dollar was supported on Thursday by cautious risk sentiment stemming in part from worries about the Delta variant while the euro looked to the European Central Bank policy decision later in the day. Oil prices ticked lower on Thursday, giving up some of the last session’s gains although a decline in US Gulf of Mexico output following Hurricane Ida provided a floor under the market. Brent was down 18 cents, or 0.25 per cent to $72.42 a barrel.
That said, here’s what is making news.
Overseas investors’ interest in HDFC Bank is expected to pick up again after the country’s largest private lender came out of the Foreign Portfolio Investors’ red flag list, said analysts. A red flag is a warning sign indicating that FPI holding in a particular company could soon touch the upper limit. A stock would be in the red flag list when FPI holdings are within or less than 3% of the permissible limit for the sector. A stock coming out of the red flag list is indicative of foreign investors reducing holdings in recent times. For a private bank, the highest allowable FPI limit is 74%.
Life for non-banking finance companies (NBFCs) is gradually returning to normal after three years of struggle. In signs of financial markets easing up for shadow banks that were shut out after the collapse of IL&FS in 2018, companies are raising funds through the public sale of bonds at interest rates lower than what they were paying before it imploded. Indiabulls Housing, which seeks to be an originator of loans rather than engaging in direct lending, and Edelweiss are in the market selling bonds to retail investors. Piramal Capital & Housing, Muthoot Finance, Muthoot FinCorp, Indel Money, Power Finance Corporation, Manappuram Finance and JM Financial are likely to raise at least Rs 10,000 crore in total by December.
Equity assets under management (AUM) of foreign portfolio investors (FPIs) reached a record $651 billion (Rs 48 lakh crore) at the end of August 2021, data from NSDL showed. It expanded by $255 billion (Rs 18 lakh crore) from the year ago period amid a rally in the domestic equity market and a sustained inflow over the past 12 months. FPIs accounted for nearly one-fifth of India’s market capitalisation of over $3.5 trillion in August. Stocks from the banking and finance sector accounted for the largest share (31.8%) in the FPI portfolio followed by IT and energy (14.6% and 10% respectively).
Flows into equity mutual funds dipped sharply in August compared to the previous month, as investors made fresh allocations to a new fund offer (NFO) of SBI Balanced Advantage Fund, which invests in a mix of equity and debt. Equity mutual funds saw inflows of Rs 8,667 crore in August, sharply lower than the previous month’s collections of Rs 22,584 crore. The advance in the equities saw the industry’s total assets under management in August surge to Rs 36.09 lakh crore as against Rs 35.15 lakh crore the previous month. Investors continued to make investments through systematic investment plan (SIPs) with such collections touching Rs 9,923 crore, Rs 314 crore higher than the previous month.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
The Reserve Bank of India has lifted the curbs imposed on state-run UCO Bank after its financials improved and the bank committed to prudence.
IDBI Bank has recovered close to Rs 250 crore of its outstanding loans to Videocon Group by selling an overseas property kept as a security by the bankrupt conglomerate.
The government may ask public sector promoters of IGL and Petronet LNG to make open offers to the minority shareholders of these
companies either in concert or in competition with the strategic buyer of BPCL to ensure state companies do not lose control of gas firms.
Canada Pension Plan Investment Board (CPPIB) is set to sell 2% stake in SBI Life Insurance Company worth Rs 2,274 crore through the
stock exchange platform on Thursday, according to a term sheet issued by the sole book-runner of the deal BNP Paribas.
Do also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.
That’s it for now. Stay with us for all the market news through the day. Happy investing!