INDICES TRADE WITH MINOR GAINS; RATNAVEER PRECISION ENGG IPO FULLY SUBSCRIBED

Domestic equity barometers traded with small gains in mid-morning trade. The Nifty traded above the 19,450 level. PSU bank shares edged higher for the second consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 28.85 points or 0.04% to 65,416.01. The Nifty 50 index added 26.70 points or 0.14% to 19,462.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index gained 0.74% while the S&P BSE Small-Cap index rose 0.83%.

The market breadth was strong. On the BSE, 2,310 shares rose and 1,277 shares fell. A total of 186 shares were unchanged.

IPO Update:

The initial public offer (IPO) of Ratnaveer Precision Engineering received bids for 1,51,86,600 crore shares as against 1,17,88,000 lakh shares on offer, according to stock exchange data at 11:27 IST on Monday (4 September 2023). The issue was subscribed 1.29 times.

The issue opened for bidding on Monday (4 September 2023) and it will close on Wednesday (6 September 2023). The price band of the IPO is fixed at Rs 93-98 per share. An investor can bid for a minimum of 150 equity shares and in multiples thereof.

Buzzing Index:

The Nifty PSU Bank index rose 1.81% to 4,620.95. The index witnessed bargaing buying after declining 3.41% in two trading sessions.

Bank of Maharashtra (up 7.82%), Punjab & Sind Bank (up 6.32%), UCO Bank (up 4.17%), Central Bank of India (up 4.15%), Indian Overseas Bank (up 3.99%), Punjab National Bank (up 3.06%), Bank of India (up 2.5%), Indian Bank (up 2.09%), Canara Bank (up 1.95%) and Union Bank of India (up 1.51%) gained.

Stocks in Spotlight:

Maharashtra Seamless rose 2.17% after the company said that it has received orders with cumulative basic value of approximately Rs 157 crore from Oil India and IOCL for supply of seamless pipes.

Shilpa Medicare gained 1.09%. The pharmaceutical company announced that its subsidiary, Shilpa Pharma Lifesciences` Karnataka-based API manufacturing facility has cleared PMDA Japan, good manufacturing practice (GMP) inspection. The inspection has concluded successfully on 1 September 2023 without any critical/major observation, it added.

ICICI Lombard General Insurance Company added 0.44% while ICIC Bank fell 0.63%. ICICI Bank received approval from Insurance Regulatory and Development Authority of India (IRDAI) for acquisition of upto 4.0% additional stake in ICICI Lombard General Insurance Company. The board of directors of ICICI Bank had approved an increase in the shareholding in ICICI Lombard General Insurance Company in multiple tranches up to 4.0% additional shareholding and make the company, a subsidiary of the bank.

Global markets:

Asian stocks advanced across the board on Monday as investors look to key data from Australia and China later in the week. The Reserve Bank of Australia will release its rate decision on Tuesday, while China is expected to release its trade balance for August on Thursday and its inflation rate next weekend.

US stocks ended mixed on Friday as traders weighed the latest U.S. jobs report. The unemployment rate jumped to 3.8% in August, the U.S. Department of Labor said Friday. Nonfarm payrolls grew by a seasonally adjusted 187,000 in August. However, job numbers first reported for June and July were revised down by a combined 110,000.

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