Nifty50: 14,324 ▼ -224 (-1.5%)
Sensex: 48,440 ▼ -740 (-1.5%)
Today, the Indian markets continued to slide for the second consecutive day. The fall was broad-based, as 45 of the Nifty50 stocks closed in the red.
Except for Nifty Metal, all sectoral indices closed negatively, with maximum weakness seen in Nifty Media (-3.0%) and Nifty Auto (-2.7%).
| Top gainers | Today's change |
| Tata Steel | ▲ 2.8% |
| Dr Reddy's | ▲ 0.7% |
| ICICI Bank | ▲ 0.5% |
| Top losers | Today's change |
| IOC | ▼ 4.0% |
| Maruti | ▼ 3.8% |
| Coal India | ▼ 3.4% |
Here are the top stories of the day.
Wabco slumps on OFS commencement
- Shares of automotive equipment manufacturer Wabco fell 10% intraday after its promoters sold shares via an offer for sale (OFS).
- Its promoter ZF International UK will offload 18.1% stake in the company through the OFS, which has a floor price of ₹5,450 per share, 11% below Wednesday’s closing price. The stock has declined by about 4% this month.
Housing sector rebounds on favourable cues
- A drop in home loan interest rates, stamp-duty cuts by state governments, and discounts from developers have provided a boost to the housing market. As per reports, 58,290 homes were sold during Jan-Mar 2021, which is nearly 29% higher than the same period last year.
- As per industry estimates, property prices have risen up to 2% in the metros. Meanwhile, unsold inventory has increased by about 1% on account of a healthy pipeline of new housing projects. The Nifty Realty index has risen about 3% so far in 2021 after gaining nearly 48% in Oct-Dec 2020.
Mixed fortunes for IPO listings today
- Shares of Laxmi Organic listed at ₹155.5, or a premium of about 20% on the issue price of ₹130, and surged as high as ₹174.6 during intraday trade. However, the stock pared some of its intraday gains and closed at ₹164, or 26% higher than its issue price.
- Meanwhile, shares of the Craftsman Automation listed at ₹1,350, or a 9.4% discount to its issue price of ₹1,490. However, the stock recovered later on and closed at ₹1,444, or 5% lower than its issue price.
Pokarna commences operations in Telangana unit
- Granite processor and exporter Pokarna has commenced operations at its quartz surface manufacturing facility in Telangana. Spread over six lakh square feet, it is reportedly one of the world’s largest facilities of its kind.
- Shares of Pokarna were up 12.5% today in an otherwise weak market. So far in 2021, the stock has risen nearly 42%.
Closing bell
This last derivative expiry day of this fiscal ended in a dramatic fashion. While the markets remained in red for the entire day, the second half saw frenzied movement on either side. Overall, the downward movement looked decisive, with the bears overpowering the bulls. The correction in the stock prices makes them look attractive, especially because their recent highs are fresh in the investor's memory. However, one must analyze the trend before acting because cheap could become cheaper in a downtrend.
Good to know
What is a direct listing?
Direct listing is a process by which a company goes public without making an initial public offering (IPO). Through this, the existing shareholders can sell their stake in the markets, without underwriters or a lock-in period for anchor investors. Recently, online gaming company Roblox went public through a direct listing. Instead of raising fresh capital in the exchange for new shares, Roblox allowed existing shareholders to sell their stake.
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Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.