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Barometers come off the day`s high; Electronics Mart IPO subscribed 21% so far

Published on Oct 04, 2022 11:27

The domestic equity barometers pared some of the early gains as they came off the day`s high in mid-morning trade. The Nifty continued to hold above the 17,200 mark. Asian markets edged higher.

At 11:25 IST, the barometer index, the S&P BSE Sensex, was up 1057.92 points or 1.86% to 57,846.73. The Nifty 50 index added 324.40 points or 1.92% to 17,211.75.

In the broader market, the S&P BSE Mid-Cap index rose 1.95% while the S&P BSE Small-Cap index gained 1.41%.

The market breadth was strong. On the BSE, 2,564 shares rose and 675 shares fell. A total of 128 shares were unchanged.

Investors cheered after witnessing a declining trend in the dollar and US bond yields. The persistence of this trend could lead to a return of FIIs in a big way in the Indian markets. In September, FIIs sold shares worth Rs 18,308.30 in the cash market while DIIs purchased stocks worth Rs 14,119.75 crore during the period under review.

Primary Market:

The initial public offer (IPO) of Electronics Mart India received bids for 1.32 crore shares as against 6.25 crore shares on offer, according to stock exchange data 11:15 IST on Tuesday (04 October 2022). The issue was subscribed 0.21 times.

The issue opened for bidding on Tuesday (04 October 2022) and it will close on Friday (07 October 2022). The price band of the IPO is fixed at Rs 56-59 per share. An investor can bid for a minimum of 254 equity shares and in multiples thereof.

The issue comprises only fresh issue of equity shares aggregating to Rs 500 crore. Of the net proceeds about Rs 111.441 crore towards funding of capital expenditure (largely opening of stores and warehouses); Rs 220 crore towards funding incremental working capital requirements and Rs 55 crore towards repayment / prepayment of certain borrowings in part or full.

Stocks in Spotlight:

Easy Trip Planners surged 8.99%. The company said its board will consider the proposal for increase in authorised share capital through issue of bonus equity shares and/or stock split on 10 October 2022.

Larsen & Toubro (L&T) advanced 2.48%. The EPC major announced that the power transmission & distribution business of L&T Construction has bagged `significant` orders in India and abroad. As per L&T`s classification, the value of the significant project is Rs 1,000 crore to Rs 2,500 crore.

Bank of Maharashtra rose 3.42%. The bank`s deposits stood at Rs 1,95,849 crore as of 30 September 2022, recording a growth of 15.93% over Rs 1,81,572 crore as of 30 September 2021. The bank reported a 28.65% growth in gross advances to Rs 1,48,246 crore as of 30 September 2022 as against Rs 1,15,236 crore as of 30 September 2021. CASA ratio stood at 56.27% as of 30 September 2022 as compared to 53.91% as of 30 September 2021.

Global Markets:

Asian stocks are trading higher on Tuesday after stocks on Wall Street rallied overnight. Markets in mainland China and Hong Kong are closed for a holiday.

The Reserve Bank of Australia is set to announce its interest rate decision later Tuesday. As per reports, the Reserve Bank of Australia is likely to hike its benchmark interest rate by 50 basis points to 2.85%.

Wall Street`s three major indices rallied to close over 2% on Monday as US Treasury yields tumbled on weaker-than-expected manufacturing data, increasing the appeal of stocks at the start of the year`s final quarter.

US manufacturing activity grew at its slowest pace in nearly 2.5 years in September. The Institute for Supply Management (ISM) said on Monday that its manufacturing PMI dropped to 50.9 this month, the lowest reading since May 2020, from 52.8 in August.

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