Share markets in India are presently trading on a positive note. In a volatile trading session, benchmark indices turned green, tracking rise in global key indices.
In early trade today, Sensex rose more than 1,450 points as global sentiments improved after the US Federal Reserve pledged to spend as much as needed to steady the financial system. However, gains were wipes as the session progressed.
The BSE Sensex is presently trading up by 655 points while the NSE Nifty is trading up by 181 points.
The BSE Mid Cap index is trading up by 1.5%, while the BSE Small Cap index is trading down by 0.5%.
Sectoral indices are trading mixed with stocks in the healthcare sector and IT sector witnessing buying interest, while realty stocks are witnessing selling pressure.
Note that, since the coronavirus outbreak, all BSE indices and NSE indices are down in the range of 25-35%.
Speaking of the coronavirus impact on Indian stock markets, the chart below shows the trend in the total market capitalization of all BSE-listed companies since the start of 2020.
Coronavirus Triggers Massive Wipeout of Investor Wealth
As you can see, through most of January and February, the total market capitalization hovered between Rs 150-160 trillion.
It was only in the last week of February that a massive sell-off started on rising fears of the coronavirus outbreak escalating into a global pandemic.
Moving on, Gold prices are currently trading down by 0.6% at Rs 40,918.
Indian Gold April futures reversed early morning gains and fell more than 2% despite positive trend seen in the international spot market.
Gold prices rose in early trade today after the US Federal Reserve announced unprecedented measures to support an economy that is reeling from the coronavirus pandemic.
As per a Reuters report, the Fed will back purchases of corporate bonds, backstop direct loans to companies and will roll out a program to get credit to small and medium-sized businesses.
Meanwhile, the rupee is currently trading at 76.11 against the US$.
The rupee on Monday tumbled by 102 paise to settle at a lifetime low of 76.22 against the US dollar as domestic equities came under pressure following a sharp surge in coronavirus cases in India.
Sustained selling by foreign institutional investors (FIIs) further weighed market sentiment.
Speaking of FIIs, how has the FII trend been so far this year? What has changed in recent weeks and months? And what's behind the heavy movement of foreign funds in India?
In latest developments from the IPO space, Everstone Capital, which owns 99.39% stake in Burger King India, is in advanced talks to sell a 4-5% stake in Burger King India to private equity fund Oman India Joint Investment Fund (OIJIF), for an estimated Rs 1-1.5 billion.
As per sources, the transaction could close over the next two weeks, or by mid-April.
An Everstone spokesperson said there was strong investor interest in Burger King India and that any share sale prior to the IPO would constitute a pre-IPO sale, without specifically referring to its stake sale discussions.
Earlier this month, Burger King India postponed the launch of its Rs 10 billion initial public offering, in which Everstone was reported to be selling at least a fourth of its stake after markets globally underwent a meltdown due to the Covid-19 pandemic.
Several companies have postponed or withdrawn their IPOs due to fear spillover.
Rosary Biotech has shelved its IPO plan. Last week on Monday, Antony Waste Handling Cell had to withdraw its IPO as the issue failed to receive requisite subscription even after an extension of its initial subscription period. It became the first mainboard IPO of the year to go unsubscribed.
The issue attracted bids for only 24,08,200 shares against the total issue size of 48,24,544 shares.
The IPO was initially opened for three days from March 4 to 6, but later the subscription period was extended till March 16.
We will keep you updated on all the developments from this space. Stay tuned.
Moving on to news from the FMCG sector, shares of Hindustan Unilever (HUL) surged 10% today after the consumer goods major announced the acquisition of intimate hygiene brand VWash from Glenmark Pharma for an undisclosed sum.
In a BSE filing on Monday, the company said that the deal would include an upfront cash payment and a deferred consideration over the next three years. The acquisition includes intellectual property, trademark and design of the brand.
Glenmark will manufacture VWash for HUL over the next one year after which the production arrangement would be reviewed.
HUL share price is presently trading up by 6.2%.
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