After opening the day on a positive note, stock markets in India have continued their momentum and are presently trading marginally higher. Sectoral indices are trading on a positive note with stocks in the healthcare sector and auto sector witnessing maximum buying interest.
The BSE Sensex is trading up 123 points (up 0.4%) and the NSE Nifty is trading up 42 points (up 0.4%). The BSE Mid Cap index is trading up by 0.6%, while the BSE Small Cap index is trading up by 1.6%. The rupee is trading at 65.03 to the US$.
In the news from the engineering sector, Dilip Buildcon share price is witnessing buying interest today. At the time of writing, the scrip of the company was trading at Rs 1,086, up 8%.
From the banking sector, market participants are tracking Axis Bank share price today. The stock of the bank is witnessing selling pressure today after the Reserve Bank of India (RBI) asked the lender's board to reconsider the fourth three-year term it handed to CEO Shikha Sharma last year.
As per the news, the central bank has addressed a letter to Axis Bank chairman Sanjiv Mishra, listing out the reasons for a review. The reasons include the bank's performance and its deteriorating asset quality, among others.
In the news from global financial markets, China has implemented retaliatory tariffs up to 25% on US$ 3 billion in food imports from the US.
China's ministry of commerce said it would be suspending tariff concessions on 120 US food products. as per the news, fresh and dried fruits, almonds, pistachios and wine would be subject to an additional 15% tariff. Eight other items, including frozen pork, would be subject to a 25% tariff.
The above development has raised fears of a potential trade war between the world's two largest economies.
In the news from the IPO space, Sandhar Technologies Ltd made a tepid debut on bourses today. The scrip of the company, which recently concluded its IPO subscription offer, got listed at Rs 346, a 4% premium to its issue price of Rs 332.How exactly this trade war will unfold is something to watch out for. We'll keep you updated on all the developments from this space.
Sandhar Technologies is engaged in the business of designing and manufacturing a diverse range of automotive components, parts and systems which are focused on safety and security systems of vehicles.
The company manufactures its products from 31 manufacturing facilities across eight states in India, two manufacturing facilities in Spain, and one manufacturing facility in Mexico. This apart, it also has an overseas assembly and packaging centre located in Poland and a R&D centre located in Gurugram, Haryana.
The company's customer profile consists of 79 Indian and global original equipment manufacturers (OEMs) across various segments and global automotive component suppliers such as Autoliv, Bosch, and CTS.
To know more about the company, you can read our IPO analysis of Sandhar Technologies Ltd (requires subscription).
At the time of writing, Sandhar Technologies Ltd share price was trading at Rs 343 on the NSE.
Speaking of IPOs, the demand for IPO's has reached sky-high levels. Avenue Supermarts was seen as the first company last year to cross the 100-time subscription mark swiftly followed by CDSL and Dixon Technologies, among others.
IPO Subscription Reach Sky-High Levels
This euphoria is something similar to what was seen in 2007-08. When everyone around you is clamoring to get a piece of the IPO pie, it makes sitting tight difficult. And, why should you sit tight when stocks like Avenue Supermart lets you pocket a cool 100% gain from day 1 of the listing?
History suggests that these cases are few and far between. More than 70% of the IPOs listed in 2007 and 2008 are in the red, even today when the Sensex is at an all-time high.
A merit-based selection primarily including valuation, business, and management quality is the logical way to go about investing in IPOs. If it means going against the herd, so be it. And going by recent past, this strategy has been proven to be successful more often than not.
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