Listen: stocks that can offer up to 50% return in a year
– WHO to decide next week on approval of Covaxin
– Moody’s raises outlook for India’s rating from Negative to Stable
– Banks and NBFCs report increase in advances
– HDFC Bank is considering a strategic investor in the NBFC branch
Now let me give you a quick overview of the state of the markets.
Dalal Street is expected to have a negative start this morning. The nifty futures on the Singapore Stock Exchange traded 35 points lower at 8:10 am (IST). Asian stock markets mostly opened higher on Wednesday as investors rushed to buy back after a massive selloff in the previous session and a rebound on Wall Street. The largest MSCI index of Asia-Pacific stocks outside of Japan was almost flat, down 0.02%.
Elsewhere, the yield on 10-year Treasuries rose about two basis points to 1.55%. The dollar hovered near year-round highs in choppy trading on Wednesday as investor attention turned to U.S. employment data and a likely rate hike in Nova Scotia. Zealand. U.S. oil prices rose for a fifth day on Wednesday to their highest level since 2014 amid global concerns over energy supply amid signs of strain in crude, natural gas and coal markets. Brent crude added 0.15%, or 12 cents to $ 82.68 a barrel after hitting a three-year high in the previous session.
That said, here’s what’s in the news.
Rich valuations have been a concern for equity investors, but analysts say there is still steam in various pockets of the market. In the NSE500 index, 180 stocks could return between 10% and 50% over the next 12 months, according to Bloomberg consensus estimates of companies covered by at least five analysts. These include SAIL, NCC, Kalpataru Power, Jindal Steel, Tata Steel, NMDC, Aurobindo Pharma, UPL, Mahanagar Gas, and Gujarat State Petronet, among others. Steel stocks – SAIL, Jindal Steel and Tata Steel – could return 40%, 32% and 31%, respectively, from current levels, according to estimates. Some analysts have said concerns about pressure steel prices are overblown.
Existing shareholders of Bharti Airtel may consider subscribing to the company’s rights issue, analysts said. The company’s Rs 21,000 crore rights issue opened on Tuesday and will close on October 21. Bharti’s rights listed on Tuesday were blocked at the upper circuit of 40% of Rs 204.50 on BSE. The RE opened at Rs 191, a premium of 31% over its intrinsic value of Rs 146.10. The intrinsic value is the difference between the price of the fully paid shares and the issue price of the rights. Bharti set the price of the rights issue at Rs 535 per share. Bharti Airtel shares closed at Rs 699 on Tuesday.
Investors increased their exposure to defensive stocks amid rising volatility and hawkish signals from global central banks. The weight of defensive sectors in the Nifty 50 index has increased by 314 basis points over the last eight months to reach 37.4% in September 2021. It is only 27 basis points below the level of March 2020 before the pandemic. In the pre-Covid period, the weight of the defensive sector was around 32%. Defensive sectors include IT, consumer goods, pharmaceuticals, telecommunications, utilities and insurance. Their weight has remained above 37% for the past four months. Over the past three months, these sectors contributed nearly 42% of Nifty’s total gain of 1,687 points.
The National Bank for Agriculture and Rural Development (Nabard), Small Industries Development Bank of India (Sidbi) and IFCI are expected to be affected, as the three financial institutions together have around Rs 2,000 crore. on Srei Group, the Kolkata-based company. financial which was put under administration Monday by the central bank. IFCI is a basic sector lender and infrastructure finance companies. Nabard is the refinancing bank for the country’s agricultural needs, while Sidbi mainly supports small and medium enterprises. Srei’s lenders and bond investors may not be able to recover more than a third of total liabilities, estimated at around Rs.31,000 crore, as of March 31.
NOW Before you go, here’s a look at the actions buzzing this morning …
From Textiles to Automotive Auxiliary Conglomerate Raymond Realty, Raymond’s real estate arm, has embarked on commercial property development and also plans to leverage its brand as well as financial strength to grow the real estate industry through joint developments. .
Future Retail Ltd announced on Tuesday that it has terminated its two-year franchise agreement with 7-Eleven Inc to open and operate the eponymous brand’s global store as a master franchisee in India.
Bharti Airtel and Vodafone Idea (Vi) could have to pay less than Rs 2,000 crore each as a single spectrum fee (OTSC), or considerably less than what they have currently accrued, if the government decides not to do so. appeal against a previous telecommunications tribunal. verdict, a senior government official said.
Months after abandoning its plan to list its non-bank subsidiary, HDB Financial Services, HDFC Bank has launched a formal process to recruit a strategic investor, ET reported.
Also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.
That’s all for the moment. Stay with us for all the market news throughout the day. Good investment!