Monday, November 29, 2021
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ETMarkets Morning Podcast: Retail money no more dumb on Dalal Street | The Economic Times Podcast


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.

– Brookfield aims to sell Peak Infrastructure at a valuation of $1.2 billion
– Domestic air ticket prices to remain high
– JSW Steel plans to raise $1b via overseas bonds
– New policy on cards for foreign coal-fired plants to sell power

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

Dalal Street is likely to have a muted start this morning. Nifty futures on the Singapore Exchange traded 30 points higher at 8:20 hours (IST). Asian markets opened mixed on Monday with investor focus shifting to Japanese politics after Prime Minister Yoshihide Suga said he would not stand for re-election. MSCI’s broadest index of Asia-Pacific shares outside Japan was up by 0.11 per cent.

Elsewhere, the yield on 10-year Treasuries rose four basis points to 1.32% Friday. The dollar languished near a one-month low versus major peers on Monday, as investors pushed back expectations for when the Federal Reserve will begin tapering its massive stimulus. Bitcoin was near $52,000. Oil prices extended losses on Monday after the world’s top exporter Saudi Arabia slashed crude prices for Asia over the weekend, signalling that global markets are well supplied. Brent crude futures for November fell 57 cents, or 0.8 per cent, to $72.04 a barrel.

That said, here’s what is making news.

Shares of Reliance Industries (RIL), which hit their highest level in 11 months on Friday, could rise 13% more by year end due to strong market liquidity and on the strength of its digital, telecom and green energy offerings, analysts have said. The oil-to-telecom conglomerate’s stock gained 4% to touch Rs 2,388.25 on Friday after chairman Mukesh Ambani said the company would double production of green hydrogen, which is cheaper than other fuels. The company’s market capitalisation surpassed Rs 15 lakh crore for the first time ever.

Retail investors have a reputation of being the last entrants in the market. This has resulted in them holding stocks at elevated valuations, leading to losses. This cycle has been different for them at least so far. Retail investors’ bets in the June quarter have rewarded them handsomely. Out of the 230 stocks with over Rs 500 crore market capitalisation in which retail investors have increased their stake by over a percent in June quarter, 85 have given a return of between 10% and 100% since July 1. Collectively, retail investors have gained nearly Rs 11,000 crore in these 230 stocks despite 107 of them giving negative returns.

India’s stock indices could climb to fresh peaks in the coming days but the pace of the advance could moderate if growing concerns over the spread of the Delta Covid variant dampen global investor sentiment. Charts are pointing to at least a 2% rise in the Nifty to 17,700 in the coming days based on last week’s 3.7% run up led by fresh foreign investor purchases. The advantage remains in favour of index bulls as the momentum in blue chips has picked up steam in the past few sessions with Reliance Industries, Tata Consultancy Services, HUL and other heavyweights taking turns to push the Sensex and Nifty to record highs almost daily last week.

LASTLY,
Six years after setting up a platform for its toll road assets, Brookfield Asset Management is looking to cash out. The Canadian asset manager aims to sell Peak Infrastructure, valuing the vehicle at Rs 8,700 crore ($1.2 billion) inclusive of debt, to cash in on the prevailing valuation uptick of similar assets, ET reported. Peak Infrastructure owns five road assets. Brookfield’s management has started discussions with various investment bankers and a formal mandate will be issued in a week. The formal sale process is expected to be launched by the middle of October.

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

State-run NHPC Ltd has proposed to take over four private sector
projects of 6,000 MW capacity allotted to Jindal Power, KSK Energy and Himagri Hydro Energy in Arunachal Pradesh and Sikkim.

JSW Steel is set to raise $1 billion (about Rs 7,300 crore) via an overseas bond sale as it is seeking to build capacity and lower fund costs with the local economy opening up fast following the vaccination drive.

CIL’s 39 coal mining projects are running behind the schedule on
account of delays in getting green clearances and issues related to rehabilitation and resettlement (R&R).

The insurance regulator Irdai has allowed ICICI Bank to bring down its stake in ICICI Lombard General Insurance to 30%. The private bank currently holds just below 52% in the non-life company.

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

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



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