Share markets in India are presently trading marginally lower.

The BSE Sensex is trading down by 131 points, down 0.3% at 52,370 levels.

Meanwhile, the NSE Nifty is trading down by 55 points.

Nestle India and Tata Consumer Products are among the top gainers today. Adani Ports and Tata Steel are among the top losers today.

The BSE Mid Cap index is trading down by 0.9%.

The BSE Small Cap index is trading down by 0.1%.

On the sectoral front, stocks from the power sector, are witnessing most of the selling pressure.

On the other hand, stocks from the FMCG sector, are witnessing most of the buying interest.

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

Nasdaq Futures are trading down by 67 points (down 0.5%) while Dow Futures are trading down by 137 points (down 0.4%).

The rupee is trading at 73.71 against the US$.

Gold prices are trading up by 1.9% at Rs 47,601 per 10 grams.

In global markets, gold fell more than 2.5% overnight after the US Federal Reserve signaled it might raise interest rates sooner than expected. Hawkish comments from Fed officials lifted the dollar to a two-month high, while 10-year US Treasury yields jumped, weighing on the precious metal.

Tracking an overnight crash in global rates, gold prices plunged in Indian markets in early trade today. Gold futures on MCX were down 1.5% at Rs 47,799 per 10 grams.

Moving on to stock-specific news...

Among the buzzing stocks, today is Federal Bank.

Private sector Federal Bank said that its board has approved issuing equity shares to World Bank arm International Finance Corporation (IFC) and associates for over Rs 9.2 bn.

At its board meeting on 16 June 2021, the board cleared a proposal to issue 104.8 m shares (with a face value of Rs 2 each) to IFC and affiliates at a price of Rs 87.4 per equity share.

IFC and its affiliates - IFC Financial Institutions Growth Fund and IFC Emerging Asia Fund, will hold about a 5% stake in the bank.

The transaction is subject to regulatory approvals. The Kochi-based bank also aims to raise up to Rs 40 bn in equity capital through routes such as rights issues, and Rs 80 bn through Tier I, Tier II, and long-term bonds such as infrastructure and ESG bonds.

It will place a proposal at the Annual General Meeting (AGM) scheduled on 2 July 2021.

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

At the time of writing, Federal Bank shares were trading up by 0.9% on the BSE.

Moving on to news from the software sector...

Nazara Technologies Makes First Acquisition Post-IPO

Gaming and sports media platform, Nazara Technologies has made its first acquisition after it listed on exchanges in March this year.

The company has signed a binding term sheet to acquire West Asia and Turkey-based mobile gaming publishing agency, Published in a primary and secondary purchase worth US$ 2.7 m.

As part of the deal, Nazara will acquire 69.8% of the company, as it looks to strengthen its presence in the Middle East and North Africa (MENA) region.

In an exchange with media, Nazara Chief Executive Officer Manish Agarwal said -

• With this acquisition, we will further expand our international footprint in the freemium segment. Nazara will aim to build local execution capabilities cutting across key growth segments - freemium, gamified learning, and esports.

He added that the acquisition will help the company in establishing itself as a key player in the region.

Agarwal said the move will also help in taking investee companies of Nazara - The 'Friends of Nazara' network - to the MENA region.

The 'Friends of Nazara' network comprises established gaming companies in which Nazara holds majority stakes and works actively with existing founders and management teams to rapidly achieve scale.

These companies include Nodwin Gaming, SportsKeeda, Next Wave Multimedia, and Paper Boat Apps. Nazara will focus on markets like Saudi Arabia, Turkey, and the UAE in the region.

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

Speaking of the current stock market scenario, note that the BSE Smallcap index touched a lifetime high recently.

Despite the index is up more than 157% since the March 2020 lows, Richa Agarwal, lead Smallcap Analyst at Equitymaster, believes smallcap stocks are set for a massive up move in 2021 and beyond.

Here's why...

As per Richa, the smallcap to Sensex ratio is a good metric to gauge while coming to some conclusions about relative valuations.

So, what is this indicator suggesting now?

As you can see from the chart below, the ratio currently stands at 0.46 times, as compared to a long-term average of 0.43 times.