Market Walk

Top Market Highlights Of The Day – Nov 24th 2021

Index performance (24 Nov 2021 ,10:30am)

SEBI Updates

SEBI has decided to put off the implementation of the proposed framework for segregation and monitoring of collateral at client level from 01-Dec to 28-Feb. The framework was conceived after Karvy had misused client collateral. The idea of these measures was to protect client collateral from misuse by TMs and CMs. However, in the light of protests from the brokers and from the market infrastructure institutions, SEBI has decided to postpone the implementation by 3 months. It would also be web enabled.

Star Health IPO opens on November 30

Star Health, India’s largest health insurer, will open its IPO on 30-November and close on 02-December. The IPO will comprise of a fresh issue of Rs.2,000 crore and an offer for sale of 5.83 crore shares by early investors and the promoter group. Rakesh Jhunjhunwala is one of the early backers of Star Health. The offer will include a Rs.100 crore reservation of shares for employees and the anchor book will open on 29-November. Star Health will use fresh issue proceeds to augment its capital and maintain solvency ratios.

India agreed to release 5 million barrels from its SPR

With the US committing to release 50 million barrels of oil from its strategic petroleum reserves to ease global crude prices, India has also agreed to release 5 million barrels from its SPR. The US had sought the support of major oil users like India, Japan and South Korea to participate in this exercise to bring down oil prices. This was necessitated after the OPEC refused to push up production of crude faster. For India, lower oil prices can make a big difference as India relies on imports to meet 80-85% of its crude oil needs.

DLF Cyber City Developers raises Rs 1000 crore via NCD issue

The rental arm of DLF, DLF Cyber City Developers Ltd, has raised Rs.1,000 crore through the issue of debentures to refinance its existing debt. DLF Cyber City is a JV between DLF and Temasek of Singapore. The fund raising was via private placement of listed, secured and redeemable non-convertible debentures. The NCDs will carry a coupon rate of 6.7% annually and mature in Sep-24. The refinancing is expected to result in interest savings. DLF Cyber City has a commercial portfolio of 34 million SFT across 7 Indian cities.

Fitch to have a clear plan to reduce fiscal deficit progressively

According to Fitch Ratings, the central government should be able to better its fiscal deficit by 30 bps to 6.6% for the fiscal year 2021-22. This reduction in fiscal deficit is expected on the back of stronger than expected revenues, even in the event of disinvestment targets not being met. It may be recollected that Fitch had held India’s sovereign rating unchanged at “BBB-“ and had also retained its Negative Outlook for India. Fitch has added that a clear plan to reduce fiscal deficit progressively could lead to better ratings.

MobiKwik to delay its IPO

MobiKwik, which runs a popular wallet and is a leading player in the BNPL (buy now pay later) space, has decided to delay its IPO plans for the time being. The DRHP of MobiKwik has already been approved by SEBI and this postponement is more due to the sharp correction in Paytm post listing. Paytm gave up 36% in 2 days of listing. MobiKwik is backed by Bajaj Finance. The decision is a tad surprising as the digital space continues to see robust demand with the Paytm IPO being more of a one-off case. The IPO is off for now.

Escorts and Vodafone Idea are under the F&O ban for Today

The two stocks under NSE’s F&O ban stock list for today are Vodafone Idea and Escorts.  Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit. It is clear that no fresh positions are allowed for any of the F&O contracts in that particular stock when it is under the F&O ban period. The Market-Wide Position Limit  is the maximum number of contracts that can be open at any time (Open Interest), thus the F&O contracts of that stock enter a ban period if the open interest crosses 95% of the MWPL.

Moody’s Revises Bharti Airtel’s Outlook To Positive From Stable

Moody’s has upgraded Bharti Airtel’s outlook to positive from stable on the back of improving operating performance and much better credit metrics. Moody’s also expects the free cash flows and liquidity to improve sharply over next 12-18 months. Moody’s has even hinted at a move to investment grade going ahead if the fundamental performance was sustained. Just a day back, Bharti had raised entry-level pre-paid plan prices by 20-25%. Its first target is to push ARPUs from Rs.153 to Rs.200 and then to Rs.300.

SGX Nifty indicate a positive opening

Trends on SGX Nifty indicate a positive opening for the index with a 50-points gain. Indian markets could open mildly higher despite largely mildly negative,US stocks also ended higher. Energy shares rallied as oil prices bounced despite the White House announcing the US would release crude from its Strategic Petroleum Reserve in a coordinated move with other countries to try to lower the cost of gasoline.

Moody’s Revises Bharti Airtel’s Outlook To Positive From Stable

Rating agency Moody’s has upgraded telecom major Bharti Airtel’s credit rating outlook to positive from stable, reflecting improvement in its financial performance and growth potential. The upgrade ia the impact of  hike in prepaid tariff rates by up to 25 per cent, which will come into effect from November 26.

FIIs net sold shares worth Rs 4,477.06 crore

Foreign institutional investors (FIIs) sold shares worth a net Rs 4,477.06 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 1,412.05 crore.

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