Share markets in India are presently trading marginally lower.
The BSE Sensex is trading down by 115 points, down 0.2%, at 54,378 levels.
Meanwhile, the NSE Nifty is trading down by 22 points
Adani Ports & SEZ and IndusInd Bank are among the top gainers today. Cipla and Reliance are among the top losers today.
The BSE Mid Cap index is trading up by 0.4%.
The BSE Small Cap index is trading up by 0.5%.
On the sectoral front, stocks from the telecom sector are witnessing most of the buying interest.
On the other hand, stocks from the energy 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 18 points (down 0.1%) while Dow Futures are trading down by 11 points (flat)
The rupee is trading at 74.17 against the US$.
Gold prices are trading down 0.2% at Rs 47,522 per 10 grams.
Gold prices continued to struggle in India's futures market. On MCX, gold futures were down 0.2% near a one-month low of Rs 47,498 per 10 grams. In the previous session, gold fell 0.6%.
Note that gold prices are down about Rs 1,000 from last week's high amid subdued global cues.
In global markets, gold prices remained weak today ahead of the US jobs data.
The US dollar also edged higher after a growing number of Federal Reserve officials signaled the possibility of a sooner than expected policy tightening. Spot gold fell 0.1% to US$ 1,802.1 per ounce.
Speaking of the stock markets, India's #1 trader, Vijay Bhambwani shares a simple hack to increase your profits from day trading, in his latest video for Fast Profits Daily.
Moving on to stock-specific news...
Among the buzzing stocks, today is Adani Power.
Shares of Adani Power (APL) rose almost 5% on the bourses after the company reported its results for the June 2021 quarter. The company registered a net profit of Rs 2.8 bn against a loss of Rs 6.8 bn during the same period last year.
The company attributed the gains to the rising electricity demand.
In a statement, Adani Power said,
- Electricity demand in the country has recovered smartly after the slump witnessed during the Covid-19 lockdown in the June 2020 quarter.
Resumption of normal economic activity, coupled with inherent demand drivers has propelled the aggregate electricity demand to 341 BU, which is 16% higher than the demand of 293 BU in the same period last year.
The company said its power generation units had an average Plant Load Factor (PLF) of 65% versus 51% in the June 2020 quarter.
Rise in PLF was a result of improved power demand in various states apart from better tariffs and volumes in the merchant and short-term markets.
APL said, the Committee of Creditors of Essar Power, which was undergoing insolvency resolution under the Insolvency and Bankruptcy Code, has approved the resolution plan submitted
by the company.
Essar Power owns a 1,200 megawatt (MW) power plant in the Singrauli district of Madhya Pradesh.
We will keep you posted on more updates from this space. Stay tuned.
At the time of writing, Adani Power shares were trading up by 5% on the BSE.
Speaking of the power sector, it is interesting to note that the power exchanged in India is about 4.5% of the overall power production, as can be seen in the chart below:
As per Tanushree Banerjee, Co-Head of Research at Equitymaster, India's power sector is currently in transition. It is driven by increasing reliance on short-term contracts and electricity spot markets.
This transition to the short-term market is happening due to quickly evolving industry dynamics.
Tanushree believes the Indian power sector will see a surge in spot power volumes due to certain factors.
Moving on to news from the IPO space...
Glenmark Life Sciences Makes Tepid Debut
Shares of Glenmark Life Sciences made a muted market debut today, as the scrip got listed at Rs 751.1 on BSE, a 4.3% premium over its issue price of Rs 720.
On NSE, the scrip debuted at Rs 750, up 4.2%.
Glenmark Life Sciences, a subsidiary of Glenmark Pharmaceuticals, is a developer and manufacturer of select high-value non-commoditised active pharmaceutical ingredients (APIs).
The Rs 15.1 bn initial public offering (IPO) by the API maker was sold from 27 July to 29 July and was subscribed 44.1 times.
The issue received bids for 663 m shares compared with 15 m shares on offer.
The portion reserved for qualified Institutional Buyers (QIB) was subscribed 37 times while the non-institutional investors' (NII) portion was subscribed 122.5 times.
The retail individual investors (RII) portion was subscribed 14.6 times.
Due to strong demand, the stock was commanding a premium of about Rs 87 in the unlisted market, a day before its market debut.
The proceeds from the fresh issue will be used towards the payment of outstanding purchase consideration to the promoter for the spin-off of the API business and funding the capital expenditure requirements.
How the stock performs in the long term remains to be seen. Meanwhile, stay tuned for more updates from this space.
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