Daily Market Update – 22nd March 2021

Untitled 5 Daily Market Update   22nd March 2021

Previous Market Close

Nifty closed at 14744 up by 186.15 points

Sensex closed at 49858.24 up by 641.72 points 

Rolex Rings, a manufacturer of auto components, has filed preliminary papers with SEBI for the proposed launch of its IPO. The Rolex Rings IPO will consist of a fresh issue of shares worth Rs.70 crore and an additional offer for sale or OFS of 65 lakh shares. These shares will be offered by one of the early investors, Rivendell PE. Now, Rivendell was formerly called New Silk Route PE and was floated by former McKinsey global head honcho, Rajat Gupta. However, Gupta later got embroiled in an insider trading scam. Rolex rings is a leading manufacturers of forged and machined components and is based out of Rajkot in Gujarat.

It has been a rollicking FY21 for India in terms of foreign flows. FPIs alone pumped in $36 billion into equities despite a chunk of the year being lost to the lag effect of COVID-19. In addition, net FDI inflows jumped to $44 billion, till January with Dec-20 alone accounting for $6.3 billion of FDI flows. During the fiscal year 2020-21, FPIs were net buyers in equity segment but were net sellers in the debt segment. What is more encouraging is that the higher flows have been led by the Category-I FPIs, comprising central banks, sovereign wealth funds, pension funds and multilateral organisations. In Mar-21 till date, FPIs have infused Rs.8,642 crore into Indian equities. FPI flows into India were driven largely by passive flows as global benchmark indices got rejigged. India also saw smart 60% growth in Fintech investments in FY21.

Even as India reduced its oil dependence on Saudi Arabia in Feb-21 and relegated them to third position behind Iraq and the US, Saudi Aramco is warming up to China. Speaking at the China Development Forum, Saudi Aramco CEO, Amin Nasser has assured that China’s energy security will be highest priority for the next 50 years. While Russia was the top crude supplier to China till 2019, it is Saudi Arabia in 2020. Saudi Aramco is also looking to partner China in its carbon neutrality goal by 2060. Aramco is also looking to expand research collaboration with China in blue hydrogen, ammonia and carbon-capture technologies.

For the week ending 19 March, 8 out of the top-10 most valuable companies on the NSE by market cap saw value erosion of Rs.138,977 crore. The two stocks to take the biggest hit during the week were Reliance Industries and HDFC Bank. Sensex ended the week 934 points lower. Among the gainers, HUL added Rs.25,295 crore and TCS added Rs.2,349 crore. Among the big value losers, RIL lost Rs.35,976 crore, HDFC Bank Rs.30,062 crore, Kotak Bank Rs.20,787 crore, ICICI Bank Rs.18,173 crore and Infosys Rs.12,460 crore. SBI eroded Rs.9,013 crore in market while HDFC and Bajaj Finance jointly lost Rs.12,500 crore.

Markets may be volatile but there is no shortage for funding for good start-up ideas. Now, biotech start-up Zaara Biotech has got an investment of $10 million from UAE-based TCN International Commerce LLC. Zaara is focused on research into energy and food crisis using micro-algae. Zaara Biotech was founded in 2016 by Najeeb Bin Haneef. Zaara also had incubation support from ICAR and has developed India’s first algae-seaweed food products. The investor, TCN International, has its presence in cutting edge sectors like IT, process management, healthcare, education, engineering, defence, aviation and hydrocarbons.

In a boost for “Ease of Doing Business”, the Indian government is set to introduce a Bill in the monsoon session to decriminalize technical violations in the Limited Liability Partnership Act, which governs the LLPs in India. The idea of the Bill is to decriminalize 12 offences that will now be dealt with by in-house adjudication mechanism rather than NCLT. Apart from making borrowings easy for LLPs, the Bill will offer relief on certain fees and penalties for defaults by small LLPs. There is also a plan to introduce accounting and auditing regime for LLPs. Being a limited partnership, these LLPs are quite popular in the service sector as the personal wealth of the partners is not at stake if the firm fails. LLPs may be asked to be transparent about real beneficial owners and also restrict number of LLPs in which one can be a designated partner.

World Indices at 9AM%name Daily Market Update   22nd March 2021

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