Sensex Tanks Over 500 Points, Dow Futures Down By 314 Points

Share markets in India are presently trading on a negative note.

The BSE Sensex is trading down by 519 points, down 0.9%, at 58,607 levels.

Meanwhile, the NSE Nifty is trading down 146 points.

Mahindra & Mahindra and JSW Steel are among the top gainers today. Bajaj Finserv and NTPC are among the top losers today.

The BSE Mid Cap index is trading down by 0.4%.

The BSE Small Cap index is trading up by 0.2%.

On the sectoral front, stocks from the metal sector are witnessing most of the buying interest.

On the other hand, stocks from the real estate sector are witnessing most of the selling pressure.

US stock futures are trading lower today, indicating a negative opening for Wall Street.

Nasdaq Futures are trading down by 123 points (down 0.8%) while Dow Futures are trading down by 314 points (down 0.9%).

The rupee is trading at 74.24 against the US$.

Gold prices are trading down by 0.1% at Rs 46,425 per 10 grams.

Gold prices were subdued in Indian markets today after a big jump in the previous session. On MCX, gold futures were down 0.03% to Rs 46,505 per 10 grams. In the previous session, gold had jumped 1.7% or Rs 800 per 10 grams.

In global markets, gold prices softened after a surge in the previous session. Spot gold fell 0.1% to US$ 1,754.6 per ounce as the dollar rebounded and made the metal expensive for holders of other currencies. In the previous session, gold had surged to a one-week high as the dollar index slipped.

Moving on to stock-specific news...

Among the buzzing stocks, today is Adani Green Energy.

Adani Renewable Energy (MH) has inked a pact with Essel Green Energy to acquire a 40 MW (megawatt) operating solar project in Odisha.

Adani Renewable Energy (AREMHL) is a wholly-owned subsidiary of Adani Green Energy (AGEL).

The company has signed definitive agreements with Essel Green Energy to acquire 100% of the SPV that owns a 40 MW operating solar project in Odisha.

Vneet Jaain, Managing Director and CEO of Adani Green Energy, said,

• With the acquisition of this project in Odisha, AGEL will now have its footprint across twelve states in India. We are on an expansion path that will make us the world's largest renewable player by 2030.

The project has a long-term power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI) for acquiring power at Rs 4.2 per unit.

It has a remaining PPA life of about 22 years.

The closing of the transaction is subject to customary conditions. The acquisition of the project is at an enterprise valuation of Rs 2.2 bn. With this acquisition, AGEL will achieve a total renewable capacity of 19.8 GW (gigawatt). The total portfolio includes 5.4 GW of operational assets, 5.7 GW of assets under construction, and 8.7 GW of near-construction assets.

We will keep you posted on more updates from this space. Stay tuned.

At the time of writing, Adani Green Energy shares were trading up by 0.3% on the BSE.

Moving on to news from the IPO space...

Softbank-backed Hospitality Startup Oyo Seeks Files for US$ 1.2 bn IPO

Hospitality startup Oyo Hotels & Homes has filed its draft red herring prospectus (DHRP) with the country's capital market regulator to raise Rs 84.3 bn (US$ 1.2 bn) through an initial public offering (IPO).

Oyo is looking to raise around Rs 70 bn ($950 million) through fresh issuance of shares while the rest of it would be through an offer for sale.

The net proceeds from the issue will be utilized to finance the prepayment or repayment of borrowings made by Oyo's subsidiaries.

This is to the tune of around Rs 24.4 bn. It will also use Rs 29 bn for funding its organic and inorganic growth initiatives. The rest of the IPO proceeds will be for general corporate purposes.

With this, Oyo joins some of the other top-tier Indian startups like Paytm, PolicyBazaar, Nykaa, and others that have filed for IPOs over the past few months. Online food delivery firm Zomato, in July, made a stellar debut on the bourses here setting the stage for domestic startups to ride on the current IPO wave.

Oyo was last valued at US$ 9.6 bn after raising around US$ 5 m in strategic investment from Microsoft.

How this pans out remains to be seen. Meanwhile, stay tuned for more updates from this space.

Speaking of the stock markets, the right investing process can help you win in the long term. It might offer some unexpected and undesirable results in the short term but lets you farewell when you average the outcomes.

According to Richa Agarwal, Senior Research Analyst at Equitymaster, any investment process should not be judged based on individual outcomes. Instead, it should have stood the test of time.

Her smallcap service Hidden Treasure has had its fair share of failures. But sticking to a disciplined process meant that Hidden Treasure's internal rate of return (IRR) increased to 24.38% since inception.

This compares favorably to the IRRs of 9.6% for the Sensex, and 8.8% for the smallcap index in the same period (February 2008 - June 2020) as can be seen in the chart below.