Indian share markets witnessed some losses at the end of the day and ended their session marginally lower. Losses were largely seen in the metal sector and IT sector, while realty stocks ended the day higher.
At the closing bell, the BSE Sensex stood lower by 53 points (down 0.2%) and the NSE Nifty closed lower by 28 points (down 0.3%). The BSE Mid Cap index ended the day up by 0.1%, while the BSE Small Cap index ended the day up by 0.5%.
Asian stock markets finished mixed as of the most recent closing prices. The Hang Seng was down 0.32% and the Nikkei was trading flat. The Shanghai Composite stood higher by 0.12%. The rupee was trading at 64.74 to the US$ at the time of writing.
In the news from the IPO markets, Mahindra Logistics, the subsidiary of Mahindra & Mahindra, was subscribed 37% today - its first day of initial public offering.
The company has set the price band of Rs 425 to 429 per share. The minimum lot size for subscription is 34 shares. The issue will remain open from October 31 to November 2, 2017.
Mahindra Logistics is one of India's largest 3PL (third-party logistics) solutions providers in the Indian logistics industry which was estimated at Rs 6.4 trillion in Fiscal 2017, according to the CRISIL Report.
The company follows an asset-light business model in which assets necessary for its operations such as vehicles and warehouses are owned or provided by a large network of business partners. The technology enabled asset-light business model allows for scalability of services as well as the flexibility to develop and offer customized logistics solutions across a diverse set of industries.
Is the company leaving enough money on the table for investors? We recently released our IPO note for the above IPO.
Speaking of IPOs, 2017 is set to be a record year for initial public offerings. However, is it worth investing in IPOs?
If past record is anything to go by, barring a few names that have quality, most IPO companies fail to live up to the hype. Note that four out of five companies which came with their IPOs recently, as mentioned in the chart below, are trading below their issue price.
One shall thus make sure to not end up paying higher valuations for a company that is yet to establish its worth.
IPO Market in Bubble Zone
In the news from commodity markets, crude oil is witnessing buying interest this week. Most of the gains are seen as market participants created fresh bets, taking positive cues from Asian markets.
One shall also note that top crude oil exporter Saudi Arabia had said it was determined to end a supply glut.
As per the news, Saudi Arabia's Energy Minister Khalid al-Falih said that the focus remained on reducing oil stocks in industrialized countries to their five-year average. He also raised the prospect of prolonged output restraint once an OPEC-led supply-cutting pact ends.
Apart from that, large drop in gasoline stockpiles also aided crude oil prices. As per the data reported by the American Petroleum Institute (API), Gasoline inventories fell by 5.8 million barrels, compared with analysts' expectations for a 17,000-barrel decline. Further, distillate fuel stockpiles, which include diesel and heating oil, fell by 4.9 million barrels, compared with expectations for an 860,000-barrel drop.
One shall note that the OPEC and non-OPEC producers including Russia have agreed to reduce crude oil output by about 1.8 million barrels per day (bpd) until March in order to reduce global oil inventories and support prices.
The group is now in talks to extend the above expiry in March.
To keep a tab on the movements in crude oil and other commodities, you can read the stock market commentary from the Daily Profit Hunter team. Their commentary tracks the developments in the global economy as well as stock, currency, and commodity markets.
And here's a note from Profit Hunter:
Axis Bank Ltd is the top stock gainer in the Nifty 50 Index --up 8%.
In fact, Bain capital is in advanced talk with the bank to invest between US$ 750 million and US$ 1 billion. Resultantly, the stock prices soared. This could be one of the largest private equity investments in the Indian banking sector.
Last time we reviewed the stock, we mentioned 530 as an important horizontal resistance level ,from where it has reacted several times in the past. This level also coincides with a 50% retracement level of the previous decline from Rs 635 to Rs 435.
In July, it broke above this resistance level, but did not sustain the trend for a longer duration, slipping to trade below the level, giving a false break out.
Today, the stock is again trading near the 530 resistance level.
What we're waiting for is, will it find resistance from 530 level? Or, can we see a sure-shot break out this time around?
Axis Bank Near Its Important Resistance
(Click on image to enlarge)
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