Markets hit a lull

Nifty50: 16,636 ▲ +2 (+0.0%)
Sensex: 55,949 ▲ +4 (+0.0%)

The benchmark indices closed nearly flat for the second day, with 28 of the Nifty50 stocks ending in the red today.   

Among the Nifty sectoral indices, FMCG (+0.5%) and Realty (+0.2%) were the top gainers, while the Metal (-1.2%) and Media (-1.1%) indices fell the most.

Here are the top stories of the day.

Govt may permit FDI in LIC

As per reports, in the run up to the mega-IPO, the government may consider allowing foreign direct investment (FDI) in LIC. Following the news, a rub-off effect was seen in the stocks of public sector insurance companies such as General Insurance Corporation and New India Assurance. These stocks have surged 8–24% so far this week.  

Currently, the government permits FDI up to 74% in the insurance sector. However, foreign investors need permission from the Insurance Regulatory and Development Authority of India (IRDAI) to hold stakes larger than 5% in public sector companies. Market experts believe that allowing FDI in LIC could boost the appeal of its IPO, which is reportedly pegged at ₹1 lakh crore.

Affle India soars on stock-split news

The Mumbai-based mobile marketing company’s shares were locked in their 5% upper circuit after the announcement of a stock split. The stock closed at ₹4,155 today. The company has announced a 1:5 stock split, wherein each share of face value ₹10 will be split into five shares of ₹2. 

The stock witnessed volatility in the past week around the news of the stock split. It has dropped around 34% from its lifetime high of ₹6,285 in March 2021.

JK Infra bags large order  

The Municipal Corporation of Greater Mumbai has approved the project for building Mithi Package IV, a diversion built on the Mithi River. JK  Infraprojects is a 51% stakeholder in the project, which is valued at ₹455 crore.

The company’s total order book as of 30 June 2021 stood at ₹11,622 crore, which is about 4.5 times its FY21 revenues. For the June quarter, it reported a profit of ₹32 crore, as against a loss of about ₹21 crore in Q1FY21. The stock closed 0.4% higher today but has declined nearly 12% so far this month.

Closing bell

The August derivative expiry turned out to be a quiet affair. The Nifty50 moved in a narrow band and remained largely indecisive, oscillating between positive and negative before closing flat. The focus will now be on the US Fed’s Jackson Hole symposium, which is expected to start from today. The market will keenly watch out for the commentary regarding how and when the US Fed will begin cutting back on its economic stimulus. 

Good to know

What is the Jackson Hole Symposium?

The Jackson Hole Symposium is an annually held economic symposium, which takes place in Jackson Hole, Wyoming, US. The event which has been organised since 1981 focuses on important global economic issues. It is attended by prominent central bankers, finance ministers, academics, and financial market players from across the world. Investors keenly monitor this symposium as comments of key stakeholders in the financial system can have an impact on the stock markets and other asset classes. This year, the symposium will be held virtually over this weekend.

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