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Barometers end with minor cuts; Tamilnad Mercantile Bank IPO fully subscribed

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Capital Market
Last Updated : Sep 06 2022 | 3:50 PM IST

The domestic equity benchmarks ended with minor cuts after volatile session on Tuesday. The Nifty closed tad above the 17,650 mark. Shares across most sectors witnessed some bit of selling. However, metal and oil & gas stocks managed to end the session with robust gains.

As per provisional closing data, the barometer index, the S&P BSE Sensex, slipped 48.99 points or 0.08% to 59,196.99. The Nifty 50 index lost 10.20 points or 0.06% to 17,655.60.

In the broader market, the S&P BSE Mid-Cap index rose 0.47% while the S&P BSE Small-Cap index added 0.10%.

The market breadth was positive. On the BSE, 1796 shares rose and 1655 shares fell. A total of 137 shares were unchanged.

Economy:

India's overall coal production increased by 8.27% to over 58 million ton in August this year as compared to the same month last year. The Coal Ministry said that of the top 37 coal producing mines in the country, 25 mines produced more than 100% while the production level of five mines stood between 80% and 100%.

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At the same time, the coal despatch has also increased by 5.41% to over 63 million tonnes as compared to August last year. The Ministry said the overall power generation in August this year has been 3.14% higher than the power generated in August last year.

Meanwhile, Indian Railways (IR) has recorded best ever August monthly freight loading of 119.32 MT in August 2022. The incremental loading has been 8.69 million tonnes, a growth of 7.86% over the same month last year. The Railway Ministry said with this, Indian Railways has had 24 straight months of best ever monthly freight loading.

Primary Market:

The initial public offer (IPO) of Tamilnad Mercantile Bank received bids for 1.06 crore shares as against 87.12 lakh shares on offer, according to stock exchange data 15:24 IST on Tuesday (6 September 2022). The issue was subscribed 1.23 times.

The issue opened for bidding on Monday (5 September 2022) and it will close on Wednesday (7 September 2022). The price band of the IPO is fixed at Rs 500-525 per share. An investor can bid for a minimum of 28 equity shares and in multiples thereof.

New Listing:

Shares of Dreamfolks Services were currently trading at Rs 473, a premium of 45.09% compared with the issue price of Rs 326. The scrip was listed at Rs 505, representing a premium of 54.91% compared with the issue price.

So far, the scrip has hit a high of Rs 550 and a low of Rs 452.25. Over 12.55 lakh shares of the company have changed hands in the counter till now.

The initial public offer (IPO) of Dreamfolks Services was subscribed 56.68 times. The IPO, with a price band of Rs 308-326 a share, was open for public subscription during 24 to 26 August 2022.

Post its debut on the domestic bourses, Dreamfolks Services announced its earnings for the quarter ended 30 June 2022.

The company reported a consolidated net profit of Rs 13.43 crore in Q1 FY23 as against a net loss of Rs 1.38 crore recorded in Q1 FY22. Revenue from operations zoomed to Rs 160.26 crore in the first quarter from Rs 24.54 crore in the same period last year.

Buzzing Index:

The Nifty Metal index advanced 1.32% to 6,064.50. The index has added 3.16% in three sessions.

Adani Enterprises (up 2.63%), Jindal Steel & Power (up 1.87%), Tata Steel (up 1.59%), Jindal Stainless (up 1.59%) and Vedanta (up 1.42%) were the top index gainers.

Among the other gainers were National Aluminium Company (up 1.32%), Steel Authority of India (up 1.24%), Hindustan Copper (up 1.24%), Hindalco Industries (up 0.44%) and JSW Steel (up 0.23%).

Meanwhile, Ratnamani Metals & Tubes (down 2.22%), Welspun Corp (down 1.3%) and APL Apollo Tubes (down 0.32%) edged lower.

Stocks in Spotlight:

Reliance Industries (RIL) added 1.01%. RIL has signed definitive agreements to acquire a 79.4% stake in SenseHawk Inc for a total transaction value of $32 million, including funding for future growth, commercial rollout of products, and R&D. Kalpataru Power Transmission (KPTL) rallied 5.93% after the company and its international subsidiaries has secured new orders or notification of awards worth Rs 1,345 crore.

NTPC rose 2.47%. The company said that it has acquired Jhabua Power Company having operational capacity of 600 MW for Rs 925 crore.

Reliance Power gained 2.58%. The company said that its board will meet on Thursday, 8 September 2022 to consider and approve raising of long term resources from domestic and/or global markets.

RateGain Travel Technologies rose 1.29%. Kuwait's second largest airline Jazeera Airlines selected the SaaS based solutions provider's product for airfare pricing insights.

Suzlon Energy added 1.99%. The company has received an order for the development of a 180.6 megawatt (MW) wind power project for Sembcorp's renewables subsidiary Green Infra Wind Energy. International Conveyors zoomed 11.67%. The company said its board will consider a proposal for buy back of equity shares on 9 September 2022.

Saurashtra Cement fell 2.11%. The company said that due to the high stocks of finished goods inventory at the Gotan Plant (Paints Division), the production at the said factory has been suspended temporarily and with immediate effect. However, the dispatches shall continue from the said factory, it added.

Global markets:

The Dow Jones futures were trading 172 points higher, indicating a positive opening in the US markets today.

Shares in Europe and Asian advanced across the board on Tuesday.

On Monday, the People's Bank of China announced it would cut the foreign exchange reserve requirement ratio, or the amount of FX reserves that financial institutions must hold, to improve the ability of financial institutions to use foreign exchange funds.

Meanwhile, the Reserve Bank of Australia raised rates by a half point to 2.35%. That's the fifth increase in a row since the central bank started raising rates in May.

Inflation in Australia stood at 6.1% in the June quarter, above the target range of between 2% and 3%.

US markets were closed on Monday on account of Labor Day.

In Europe, Mary Elizabeth Truss, prominently referred to as Liz Truss, was on September 5 announced as the next prime minister of the United Kingdom, after she defeated rival Rishi Sunak in the Conservative Party leadership race.

Crude oil prices rebounded after OPEC and key allies such as Russia agreed to cut production quotas by 100,000 barrels per day in October.

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First Published: Sep 06 2022 | 3:38 PM IST

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