Indian Indices End Flat, Asian Paints And Dr Reddy's Laboratories Among Top Nifty Gainers

The rupee is trading at 72.56 against the US$.

Gold prices for the latest contract on MCX are trading up by 0.1% at Rs 44,925 per 10 grams.

Gold prices firmed today as US Treasury yields eased, while investors awaited a US Federal Reserve meeting which is likely to tackle concerns over rising inflation.

Note that prices had dipped to their lowest in nine months last week, as a stronger dollar and surging US Treasury yields dented demand for the non-yielding asset.

Speaking of stock markets, has the Indian stock market moved into bubble territory?

This is something that many experts around the world have begun warning us about.

But are they correct? Is the stock market really in a bubble now?

In news from the IPO space...

The initial public offering (IPO) by Kalyan Jewellers opened for subscription today with the company looking to raise Rs 11.8 billion through the public issue.

At the closing stock market hours today, the IPO had witnessed a subscription of 41%.

Retail investors have put in the highest number of bids as the reserved portion for them has been subscribed 77%.

The portion set aside for non-institutional investors is subscribed 13% and that of employees is booked 7%.

Ahead of the IPO, Kalyan Jewellers managed to raise Rs 3.5 billion from anchor investors.

The IPO is a mix of fresh issue and an offer for sale (OFS) by existing shareholders. Through the IPO, promoters will trim their stake to 60.53% from the current 67.99% while public shareholding in the company will increase to 39.47% from 32.01%.

The price band for the IPO has been set at Rs 86-87 per share and investors can bid for the issue in a lot of 115 shares.

Shares of Kalyan Jewellers in the grey markets were trading flat, hinting at diminishing interest from investors.

In the grey market, the stock is trading in the range of Rs 93-95, translating in a premium of about 8%, which is not much compared to how other issues that are slated for this week are trading.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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