Hawkish US Fed tone hits D-Street; Sensex slips 179 pts; IT stocks shine

A mild recovery post a gap-down start quickly dismantled during the last hour of the session as market participants offloaded metal and rate-sensitive counters

11:25 AM

Troubled newspaper creates 200% windfall with digital arm's IPO

The buyers of the Toronto Star newspaper have tripled their money on the investment in less than a year after completing an initial public offering of a little-known online publishing division.

 

The IPO of VerticalScope Holdings, a former unit of Torstar that runs websites for hobbyist communities such as wood-workers and motorcyclists, raised about C$125 million ($103 million). The shares closed at C$22.95 in the first day of trading on Tuesday, valuing the remaining stake held by private equity firm NordStar Capital at C$180 million. READ MORE

11:15 AM

MARKET VIEW | Some correction in the market is now desirable!

The FOMC meet has sent out mixed signals. The decision to keep rates unchanged at 0 to 0.25 levels, maintain asset purchases at $120 a month and declaration that monetary policy will continue to give powerful support to growth are supportive for markets. But Fed's language is mildly hawkish since there are indications of bringing the rate hikes forward. Fed chief's remark that " inflation can be more persistent than we thought" is a signal that the Fed will be serious about tackling inflation by withdrawing accommodation at the right time. The rise in US 10-year bond yield by 10 bp to 1.58% and the Dollar index moving up to 91.50 are negatives for emerging markets like India. However, it is important to note that the Fed has raised the 2021 US GDP forecast to 7% from 6.5% earlier. This means higher EPS growth and better prospects for equities. Back home in India, Covid data continues to improve and reopenings are gathering momentum favouring unlock trades. Some correction in the market now is desirable since it would make the market healthy. 

-- Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

11:08 AM

Adani juggernaut will roll on but it needs more quality investors

A temporary bout of nervousness in the stock market won’t shake Asia’s second-richest man, who has managed to sustain — without any visibility on future profit — a decade-long entanglement in a controversial and costly coal mine investment in Australia. Behind that confidence lies the workhorse of the group. Adani Ports & Special Economic Zone Ltd. is spewing $1 billion of cash annually, a nine-fold jump from 2014. READ MORE

10:59 AM

Market breadth turns sharply positive on hopes of revival in economy

The market breadth has turned sharply positive since May on hopes that a decline in covid-19 infections will lead to a revival in the economy. The advance-decline ratio (ADR) for May was the best since June 2020 at 3.8. So far this month, the ratio has continued to remain above three. In simple words, for every one declining stock there were nearly four advancing stocks in May and three this month. READ MORE

10:47 AM

BS Podcast :: Key things retail investors must look at before investing in an IPO

The lure of owning a new piece of business is what has always driven retail investors to the new public offers. But history has been witness that the euphoria in the IPO market has not always been kind to them, with investors often ending up getting their hands singed. Although, identifying the right bets has resulted in a windfall for them. LISTEN TO THE PODCAST HERE

10:38 AM

Gujarat Gas hits new high; rallies 32% in four weeks on healthy Q4 results

Shares of Gujarat Gas Company continued their upward journey, hitting a new high of Rs 674.80 after they advanced 6 per cent on the BSE in intra-day trade on Thursday. In the past four weeks, the stock of the integrated oil and gas firm has rallied 32 per cent after the company reported a strong set of numbers for the quarter ended March (Q4FY21). In comparison, the S&P BSE Sensex is up 5.6 per cent during the same period. READ MORE

10:27 AM

Gold stages slight rebound on bargain hunting after Fed's hawkish tone

Gold prices rose on Thursday as investors took advantage of a sharp fall in the previous session to buy the metal after the U.S. Federal Reserve signalled it might raise interest rates sooner than expected. Spot gold was up 0.6% at $1,822.36 per ounce, as of 0235 GMT. U.S. gold futures were down 2% at $1,824.70 per ounce. READ MORE

10:25 AM

Commodity Heatmap :: Silver tumbles nearly 2%

10:13 AM

JP Morgan, Goldman, two other banks hired by Paytm for proposed $3 bn IPO

Paytm, India’s digital payments startup, has hired four banks including JPMorgan Chase & Co. and Goldman Sachs Group Inc. for its proposed initial public offering, people with knowledge of the matter said. The board of the startup, formally called One97 Communications, also approved Morgan Stanley and ICICI Securities Ltd. to help with the sale, the people said, asking not to be identified as the matter is private.READ MORE

10:04 AM

Rupee opening

Rupee opens lower at 73.65/$ vs previous close of 73.32 against the US dollar

10:02 AM

Somany Ceramics surges 12%, hits 52-week high on strong Q4 results

Shares of Somany Ceramics rallied 12 per cent to hit a 52-week high of Rs 550 on the BSE in intra-day trade on Thursday after the company reported a strong set of numbers for the March quarter (Q4FY21), with the profit after tax of Rs 30.3 crore as against a loss of Rs 9 crore in Q4FY20. The revenues during the quarter under review grew 58.8 per cent year-on-year (YoY) to Rs 562 crore from Rs 354 crore on the back of strong volumes. Tiles sales volumes were up 52 per cent YoY at 16.9 MSM with realisations up 4 per cent YoY at Rs 293/SCM. Tiles revenues were up 57.8 per cent YoY at Rs 491.1 crore. READ MORE

9:53 AM

SECTOR WATCH:: Nifty Metal index under pressure, but off day's low

9:47 AM

Most active stocks by volume

Company	PRICE(rs)	CHG(%)	VOLUME
Vodafone Idea	9.47	-0.73	6372050
Advanced Enzyme	408.55	-1.42	2183597
Future Consumer	9.67	-5.84	1562198
Tata Power Co.	126.05	0.08	1081507
Suzlon Energy	7.15	0.70	909418

9:42 AM

Market Check :: Sensex off day's low, still down 180 points

9:38 AM

Federal Bank gains over 1%

The private lender said its board has approved issuing equity shares to World Bank arm International Finance Corporation and associates for over Rs 916.25 crore. The decision was taken by the board of directors at its meeting held on June 16, 2021.