Daily Market Update Mar 3

unnamed Daily Market Update Mar 3

MTAR Technologies raised Rs.180 crores from 15 anchors ahead of its IPO opening on 03 March. MTAR is a Hyderabad based precision technology solutions company catering to high-end defence and space research outfits. MTAR allocated 31.11 lakh shares at Rs.575 per share, which is the upper end of the proposed IPO price band. The total demand received from 35 institutions was Rs.3500 crore. SBI MF and Axis MF picked up 13.67% each. They had also invested in the pre-IPO. Other investors included Nomura Funds, White Oak, Goldman Sachs, ICICI Pru MF, HDFC MF, Birla MF, Nippon India and Sundaram Invesco.

India is literally rolling out the red carpet to welcome Tesla to set up its manufacturing facility in India. It is ready to offer incentives to ensure Tesla’s cost of production is less than in China. The pitch assumes significance after Tesla registered a company in Bengaluru last month. Initially, Tesla plans to test waters by importing and selling its Model 3 electric sedan in India. Nitin Gadkari has gone to the extent of committing that if Tesla is willing to go the whole hog then the government will ensure to bring down Tesla’s production costs to competitive levels. The challenge is that Tesla already makes cars in China and nearly one-third of Tesla’s global sales are accounted for by China. While India may offer better cost structures to Tesla, offering an alternative to the massive Chinese market may be a humongous task for India.

Krishna Institute of Medical Sciences or KIMS based in Telangana filed preliminary papers with SEBI to raise Rs.700 crore through an IPO. The IPO will comprise a fresh issue of shares totalling Rs.200 crore and another 21.34 million shares under offer for sale. Apart from an early investor, General Atlantic Singapore, the promoters will also look to partially monetize their stake in KIMS. According to initial reports, the IPO is expected to fetch close to Rs.700 crore. The company plans to use the proceeds of the fresh issue to defray the debt of the group. KIMS operates 9 multi-speciality hospitals aggregate of 3064-bed capacity.

Tuesday was the second consecutive day of gains for stock markets as Sensex gained 447 points to close above the psychological 50,000-mark. There was visible buying in sectors like auto, banking and IT. It was a volatile day with the Sensex swinging nearly 633 points on Tuesday before closing 90 bps higher. On the Sensex, top gainers included M&M, NTPC, Bajaj Auto, Tech Mahindra, TCS and Maruti. However, ONGC, HDFC, Reddy Labs, PowerGrid and SBI were among the losers. The A/D ratio of Sensex was 25:5. A mix of better-than-expected GDP numbers and calm return to global bond markets buoyed indices for the day.

Telecom spectrum auctions worth Rs.77,815 crore concluded on Tuesday. Bids were received in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands but no takers came forward for airwaves in premium 700 and 2500 MHz bands. The 700 MHz band alone accounted for 33% of the spectrum on offer. SUC will be levied at 3% of AGR. The biggest spectrum allocation was received by Jio which successfully bid for 488.35MHz at Rs.57,123 crore. Bharti Airtel infused Rs.18,699 crore into the spectrum while Vodafone could only get a spectrum worth Rs.1,994 crore. The government had put a spectrum worth Rs.3.92 trillion on offer.

Preliminary trade data suggests a minor 0.25% dip in merchandise exports in February 2021 but the trade gap for Feb-21 narrowed to $12.88 billion compared to the $15 billion median trade deficit in the last 2 months. Exporters attributed the fall in exports to container shortages and supply disruptions due to rising COVID-19 cases. Exports were marginally lower by 0.25% at $27.40 billion for Feb-21 while imports stood at $40.55 billion. Pharma exports clocked 14.6% growth but key forex earners like petroleum, gems & jewellery and engineering goods witnessed de-growth. A tad more worrying was the fact that gold imports were up 124% on a YoY basis. For the first 11 months of FY21, exports fell 12.32% to $255.92 billion while imports fell 23.09% at $340.88 billion. India is expected to end the fiscal year with an overall CAD of $5 billion.

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