Indian share markets witnessed some losses on Tuesday 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 yesterday, 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%.
Top Stocks in Focus Today
Bharti Infratel share price will be in focus today as the company announced it is exploring a mega stake acquisition in larger peer Indus Towers. This plan could be the largest consolidation move in the industry. As per the reports, the company has decided to explore and evaluate acquisition of stake in one or more tranches in Indus Towers, with the aim of making it a subsidiary or wholly owned subsidiary of Bharti Infratel. Bharti Infratel and Indus combined currently run nearly 41% of the total towers in India and account for 49% of co-locations.
Market participants will also be tracking Torrent Pharmaceuticals Ltd share price as the company announced it is in advanced discussions to acquire the domestic formulations business of Unichem Laboratories Ltd for Rs 32-33 billion.
Zydus Cadila share price will also be in focus today as the company received approval from the US health regulator to market Clobetasol Propionate ointment. The ointment is used to treat a range of skin conditions.
Growth in IIP Around the Corner?
In news from the economy, as per a leading financial daily, SBI Research in its latest report has accessed that Indian economy is likely to improve to 6% in the second quarter of the current fiscal year 2017-18, as against 5.7% growth in the first quarter of FY18.
This is in the wake of increase in several macroeconomic indicators like trade, transport and communication. It also said that Q2 growth might be in the lower end of 6-6.5% band with an upward bias.
As per the report, index of industrial production (IIP) growth for September may be over 5% as mining and electricity growth is likely to be significantly better as state electricity boards had purchasing power because of festive demand. It noted that most of the lead indicators -- foreign tourist arrivals, international passenger and air freight traffic, railway traffic and telephone subscribers have shown an uptick in recent months.
Note that Indian GDP growth hit a three-year low of 5.7% in the June quarter. The aftereffects of Notebandi and the Goods and Service Tax (GST) were mainly responsible for the slowdown. The growth was much lower than analyst estimates of around 6.6%.
From the IPO Space
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.
Apart from the above two more companies viz. Khadim India Ltd and India's state-run New India Assurance Co. Ltd are set to come up with their IPO this week.
We've released our IPO notes for the above two IPOs. You can access the same in our IPO section.
In the News from Commodity Markets...
Crude oil is witnessing buying interest this week. Most of the gains were seen as market participants created fresh bets, taking positive cues from Asian markets.
The rise in crude oil prices is also seen as 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.
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.
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