ETMarkets Morning Podcast: Stocks Fund Managers Bought Last Month

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Hi hello. Welcome to ETMarkets Morning, the money, business and markets show. I am Nikhil Agarwal. Let’s start with the headlines first.

– Center could take a stake in Vodafone Idea to allay investor fears
– Blackstone in talks to buy visa company VFS Global
– Apple unveils iPhone 13, adds new features to iPads
– Food delivery apps may face GST

Now let me give you a quick overview of the state of the markets.

Dalal Street is expected to have a positive start this morning. The crafty futures on the Singapore Stock Exchange traded 40 points higher at 8:20 a.m. (IST). Asian markets opened lower on Wednesday as investors sought to secure earnings after recent rallies, with falls on Wall Street also weighing on the market. The largest MSCI index of Asia-Pacific equities excluding Japan fell 0.69%.

Elsewhere, the yield on 10-year Treasuries was 1.29%. The dollar has drifted into recent ranges against its major peers on Wednesday after weaker-than-expected US inflation raised doubts about a decline in Federal Reserve stimulus this year. The dollar index stood at 92.632, little changed from Tuesday. Oil prices climbed Wednesday after industry data showed a larger-than-expected drop in crude oil inventories in the United States, the world’s largest consumer of oil, and on expectations that demand will recover as vaccine rollout expands. Brent crude oil rose 39 cents, or 0.5%, to $ 73.99 a barrel.

That said, here’s what’s in the news.

The government is prepared to take a token stake in Vodafone Idea by converting a portion of the contributions the company owes as part of the Centre’s efforts to instill investor confidence in the future of the loss-making telecommunications company, ET reported. The government may also retain the ability to convert more of those contributions into equity after four years, subject to conditions, the report said. The amount of the symbolic participation and whether it would be shares or any other instrument has not yet been decided. The idea is to allay investor concerns and help the company raise funds to improve its operations.

The stock of Bharat Electronics (BEL), a supplier of electronic machinery for the defense forces, has gained 25 percent in the past three months. Momentum is expected to continue as the size of the executable backlog for the current year, as mentioned in the company’s latest annual report, exceeds its revenue forecast. This could lead to increased profits due to higher revenue growth. At Tuesday’s closing price of 202.5 on the BSE, the stock was trading at 19 times one-year forward earnings, a 26% premium over the long-term average valuation. It can be maintained given the prospect of better execution at a higher margin in a context of lower working capital requirements.

Fund managers showed great conviction in the IPOs during August. They have subscribed to issues from Chemplast Sanmar, Nuvoco Vistas, Devyani International, CarTrade Tech and Krsnaa Diagnostics as many of these companies have unique business models and leadership positions within their industries. Major fund houses have taken a bottom-up approach while selecting stocks amid concerns about high valuations. The fund also houses increased exposure to well-positioned companies in the healthcare, chemicals and telecommunications sectors where valuations are below those of the broader market. Max Healthcare Institute, Bharti Airtel, and Escorts are a few of their picks during the month.

RECENTLY,
The country’s largest lender, the State Bank of India (SBI), has blocked the receipt of funds by crypto exchanges on its UPI platform. The bank has asked payment processors to disable SBI UPI for crypto traders, according to payments industry sources. With this, traders cannot buy Bitcoin or cryptocurrency by transferring funds through UPI, as none of the processors that handle funds for the exchanges will be able to receive the money sent for crypto purchases to their SBI accounts. . In the past six months, several banks have cracked down on
transfers of funds related to cryptographic transactions.

NOW Before you go, here’s a look at the actions buzzing this morning …

Renowned investor Rakesh Jhunjhunwala’s Rare Enterprises bought shares of Zee Entertainment Enterprises through a wholesale deal on the National Stock Exchange.

Reliance Infrastructure will receive Rs 7,100 crore from the Delhi Metro Rail Corporation (DMRC) after a recent Supreme Court ruling, company chairman Anil Ambani told shareholders on Tuesday. The payment from DMRC will be used for debt repayment and the company, which has a stand-alone debt of Rs 3,808 crore, will become debt-free, Ambani said.

HCL Technologies said it has signed a pact with South Korean software company HANCOM Inc to share advanced software technology solutions and establish a mutual beachhead for overseas expansion.

Shree Cement will invest Rs 4,750 crore in three projects, including Rs 3,500 crore to set up an integrated cement plant in Nawalgarh Tehsil, in the state.

Also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.

That’s all for the moment. Stay with us for all the market news throughout the day. Good investment!


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