ETMarkets Morning Podcast: Smart money busy hunting for the next mid- and


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

– Airtel plans co-branded handsets to take on Jio
– ZEE investor seeks Board recast; demands removal of MD Punit Goenka
– Pre-IPO bout to value PharmEasy at $6 billion
– MF SIP account additions hit a record in August

Now lemme give you a quick glance on the state of the markets.

Dalal Street is likely to have a positive start this morning. Nifty futures on the Singapore Exchange traded 41 points higher at 8:00 hours (IST). Asian markets opened higher but gave up early as investors awaited US inflation data later in the day. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.16 per cent.

Elsewhere, the yield on 10-year Treasuries was at 1.32%. The dollar was little changed against other major currencies on Tuesday as investors looked to US inflation data later in the session for clues on the timing of policy tightening by the Federal Reserve. Oil prices extended gains on Tuesday, hovering near a six-week high, on signs another storm could affect output in Texas this week even as the US industry struggles to return production after Hurricane Ida wreaked havoc on the Gulf Coast. Brent crude rose 15 cents, or 0.2 per cent to $73.66 a barrel.

That said, here’s what is making news.

Adani Transmission, HDFC Life, Max Financial, Max Health and Aarti Industries are likely to see $34 million to $116 million worth of inflows as part of the FTSE semi- annual rebalancing which will take place on September 17, according to Edelweiss Alternative Research. Hatsun Agro, Alkyl Amines, KPIT Technologies, Balaji Amines, Finolex Industries and Aster DM are likely to see $20 million to $22 million in inflows, said Edelweiss. Overall, India is likely to see net outflows of about $100 million to $150 million from the rebalancing, said market experts. Overall, India is likely to see net outflows of about $100 million to $150 million from the rebalancing.

Institutional investors seem to be combing through a bunch of mid- and small-cap companies to pick the next winner, amid concerns that many of such stocks may have become overheated with steep gains in the past year. Of the 15 companies that saw the most number of meetings with institutional investors in the past one month, 10 were mid- or small-caps. Such meetings are probably a soft indicator of investor interest in the stocks and, on many occasions in the past, institutional holdings have risen after the meetings.

India’s already shallow bond market turned almost dry with investor interest fading even from the so-called benchmark bond a few months ago as the market and the Reserve Bank of India couldn’t agree on what the right price was. That seems to be changing. Benchmark 10-year government bonds yet again became the most traded fixed income security on Monday for the first time this fiscal after the central bank appeared to be giving up its resistance for higher yields. Bonds worth Rs 6,630 crore changed hands through 731 trades. The move should help streamline both federal and corporate borrowings.

Markets regulator Sebi and the brokers on Dalal Street are currently in a face-off relating to trading processes in the stock market. Sebi’s insistence on continuing with a very high margin requirement for all types of cash trades, called peak margin, has been met with strong resistance from the broking community. As the issue relating to margin was being discussed, Sebi decided to move to the shorter T+1 settlement cycle from January 1. On the second issue, although it will be optional, foreign investors have joined hands with brokers, saying that post-trade procedural time lags may lead to hurdles in shifting to a shorter settlement cycle. With no solution in sight, the issue has reached the finance ministry and may even land in court.

NOW Before I go, here is a look at some of the stocks buzzing this morning…

Jindal Steel and Power’s (JSPL) Australian mining company Wollongong Coal on Monday restarted operation of its Russell Vale mine which had
been shut for more than six years.

HCL Technologies has signed a multi-year contract with biotechnology firm Genmab to support its IT infrastructure operations globally, it said, without disclosing the deal value.

Public shareholders of Allcargo Logistics on Monday voted against its delisting offer, the company said in a filing to the Bombay Stock Exchange.

Credit Suisse has initiated coverage on online food delivery platform Zomato with an outperform rating and a target price of Rs 185.

Do also check out over two dozen stock recommendations for today’s trade from top analysts on

That’s it for now. Stay with us for all the market news through the day. Happy investing!


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