Sensex Falls Over 100 Points, Dow Futures Up By 23 Points

Share markets in India are presently trading marginally lower.

The BSE Sensex is trading down by 147 points, down 0.3% at 52,778 levels.

Meanwhile, the NSE Nifty is trading down by 35 points.

Divi's Laboratories and ONGC are among the top gainers today. HDFC Life and Titan are among the top losers today.

The BSE Mid Cap index is trading up by 0.6%.

The BSE Small-Cap index is trading up by 0.5%.

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

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

US stock futures are trading higher today, indicating a positive opening for Wall Street.

Nasdaq Futures are trading up by 19 points (up 0.1%) while Dow Futures are trading up by 9 points (flat).

The rupee is trading at 74.21 against the US$.

Gold prices are trading up by 0.3% at Rs 47,056 per 10 grams.

In global markets, gold rates slipped on the back of a stronger US dollar. Spot gold was down 0.2% at US$ 1,777 per ounce, after hitting a one-week low of $1,770 earlier in the session.

Amid weak global cues, gold prices struggled in India today. On MCX, gold futures were flat near a two-month low of Rs 46,970 per 10 grams.

Note that despite the price dip, retail gold demand in India has remained weak since the previous week. Gold prices in India are down about Rs 10,000 from last year's highs.

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani talks about why he believes the market is likely to stay bullish till the end of June, in his latest video for Fast Profits Daily.

Moving on to stock-specific news...

Among the buzzing stocks, today is NTPC.

NTPC, India's largest power generating company under the Ministry of Power, has become the first energy company in India to declare its Energy Compact Goals as part of the United Nations (UN) High-level Dialogue on Energy (HLDE).

As per the official release by the ministry, NTPC has set a target to install 60 gigawatts (GW) of renewable energy capacity by 2032. The company is also aiming at a 10% reduction in net energy intensity by 2032.

NTPC is among the few organizations globally to declare its Energy Compact Goals.

Further, NTPC has declared that it will form at least two international alliances/groups to facilitate clean energy research and promote sustainability in the energy value chain by 2025.

The targets were unveiled in the recently held 'Ministerial Thematic Forums for the HDLE' event.

The UN is set to convene a high-level dialogue in September 2021 to promote the implementation of the energy-related goals and targets of the 2030 Agenda for Sustainable Development.

NTPC has already taken various steps to increase its green energy portfolio by adding significant capacities of renewable energy (RE) sources.

This development will catapult its position in the green energy map of the country.

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

At the time of writing, NTPC shares were trading up by 0.8% 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.

In August 2020, Tanushree recommended a high-quality stock from this space. Subscribers can read the report here (requires subscription).

Moving on to news from the IPO space...

Dodla Dairy Makes Strong Debut, Lists at Over 28% Premium

Dodla Dairy, which recently concluded its IPO, made a strong debut on the bourses today.

Shares of the company began trading at Rs 550 per share on NSE and were up Rs 122 or 28.5% compared to the issue price of Rs 428.

On BSE, Dodla Dairy shares listed at Rs 528 apiece and rose 23.4% or Rs 100 over its IPO price.

The IPO, worth Rs 5.2 bn, was subscribed 45.6 times.

The company received bids for 388 m shares against 8.5 m shares on offer.

The Qualified Institutional Buyers (QIB) category was subscribed 84.9 times while the non-institutional investor (NII) category was subscribed 73.3 times.

The retail investors (RI) segment was subscribed 11.3 times.

The company said that it will use the proceeds from the issue for payment of certain borrowings, funding capital expenditure requirements of the company, and for general corporate purposes.

Dodla Dairy operations in India are primarily across Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu, and international operations are based in Uganda and Kenya.

ICICI Securities and Axis Capital were the managers of the offer.

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

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

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.