India's Power Consumption, Shyam Metalics IPO, and Buzzing Stocks Today

Thu, 10 Jun Pre-Open | Nandini Mehta, TM Team

   Previous Close   

   Pre-Open   

On Wednesday, Indian share markets erased early gains and ended on a negative note amid muted investor sentiments across global markets.

At the closing bell yesterday, the BSE Sensex stood lower by 334 points (down 0.6%).

Meanwhile, the NSE Nifty closed lower by 105 points (down 0.7%).

Power Grid Corp and SBI Life Insurance were among the top gainers.

Tata Motors and Adani Ports, on the other hand, were among the top losers.

The BSE MidCap index and the BSE SmallCap index ended down by 0.7% and 1%, respectively.

Sectoral indices ended on a negative note with stocks in the energy sector, oil & gas sector and realty sector witnessing most of the selling pressure.

Power stocks, on the other hand, witnessed buying interest.

Gold prices for the latest contract on MCX were trading down by 0.1% at Rs 49,073 per 10 grams at the time of closing stock market hours yesterday.

Speaking of stock markets, in his latest video for Fast Profits Daily, India's #1 trader Vijay Bhambwani talks about how retail traders are moving the stock market.

As per Vijay, Indian retail traders are dominating the market and you need to react accordingly.

Tune in to the video below to find out more:

Top Stocks in Focus Today

Among the buzzing stocks today will be Inox Leisure.

India's second largest multiplex chain Inox Leisure said that its board has approved the launch of a qualified institutional placement (QIP) to raise funds from institutional investors.

This comes days after the state government of Maharashtra announced a phased re-opening of cinema halls and multiplexes.

The indicative price for the QIP has been set at Rs 310 per share with a floor price of Rs 315.3 per share. According to the deal terms, there is an implied discount of 7.1% to the closing price of Rs 333.7 on 8 June 2021.

The fund raise is aimed at capex, working capital and for debt repayment. Edelweiss Financial Services and Axis Capital are the investment banks working on the QIP.

Announcing: Tanushree Banerjee's Most Controversial Project Ever...

Dewan Housing Finance Corp share price will also be in focus today.

63 Moons Technologies said it is going to challenge NCLT's approval of the DHFL resolution plan.

The National Company Law Tribunal (NCLT) had approved the resolution plan of Piramal Capital and Housing Finance (PCHFL) for DHFL earlier this week.

63 Moons wants the creditors of DHFL to receive the money, instead of the buyer (PCHFL), in case recovery happens in the alleged fraudulent transactions by former promoters.

In a release, the company said it believes the current resolution plan is contrary to law and against the interest of all DHFL's creditors including NCD holders. The company holds over Rs 2 bn non-convertible debentures (NCD) of DHFL.

Meanwhile, fixed deposit (FD) holders of DHFL are planning to approach higher courts against the NCLT order as they want their full money back.

The administrator of DHFL had filed applications for recovery of almost Rs 450 bn under the Insolvency and Bankruptcy Code (IBC) against DHFL's promoters and other persons on account of their fraud against the creditors.

The contention of 63 Moons is that Rs 450 bn must come to the defrauded parties, instead of the buyer.

Note that shares of DHFL have been rising continuously, even though the company is about to delist its shares from the exchanges as part of its bankruptcy resolution.

Power Stocks Rally; Torrent Power, JSW Energy & Power Grid Hit New Life Highs

Shares of power generation and distribution companies continued their upward movement, with Adani Power, Torrent Power, JSW Energy and Power Grid Corporation hitting their respective all-time highs on the BSE in intra-day trade yesterday amid strong demand.

Tata Power, CESC, Bharat Heavy Electricals (BHEL) and NTPC were quoting at their respective 52-week high levels.

In the month of June (last seven trading days), the power index has rallied 9%, against a 1% rise in the benchmark index.

The BSE Power Index was trading at its highest level since November 2010.

Among individual stocks, Tata Power soared 13% to Rs 132.5 per share in today's session after Competition Commission of India (CCI) cleared Tata Power's acquisition of stakes in three Odisha power utilities.

Power Grid Corporation hit a 52-week high of Rs 245.5 apiece, up 4.5% after the state-owned electric utilities company said it has acquired transmission project SATL, which will evacuate electricity from 8.1 gigawatt (GW) solar energy zones in Rajasthan.

India's power consumption grew 12.6% bn units (BU) to 25.4 BU in the first week of June.

Power consumption for the same period a year ago was 22.5 BU. This was, however, 3.4% lower on a monthly basis from 26.2 BU, consumed in the first week of May this year.

Peak power demand was recorded at 168.7 GW on June 7, up 15% from last year's 146.5 GW.

Meanwhile, the Ministry of Power (MoP) released a discussion paper on the implementation of Market-Based Economic Dispatch (MBED) which argues for redesigning of day-ahead scheduling of electricity markets in the country on a market based or integrated approach in order to realise the 'One Nation, One Grid, One Frequency, One Price' framework.

Shyam Metalics Fixes Price Band

Shyam Metalics has fixed the price band for its issue at Rs 303-306.

The issue has been downsized from Rs 11.1 bn earlier, as the promoters decided to cut the offer for sale (OFS) portion to Rs 2.5 bn from Rs 4.5 bn earlier.

The company has proposed to use the net proceeds from the fresh issue to repay or prepay up to Rs 4.7 bn of its debt and those of its subsidiary, Shyam SEL and Power, and for other general corporate purposes.

Tata Steel Long Products and Tata Metaliks, among other will be the company's close peers.

Shyam Metalics is a producer of intermediate and long steel products, such as iron pellets, sponge iron, steel billets, TMT, structural products, wire rods and ferroalloys.

It also focuses on high-margin products such as customised billets and specialised ferroalloys for special steel applications.

Unlike flat steel products, whose market is dominated by big players, long steel has a fair share of smaller companies. Shyam Metaliks is among the largest producers of ferroalloys in terms of installed capacity in India, as of February end.

How Shyam Metalics' IPO sails through remains to be seen.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Indian Share Market Update: Top Gainers and Losers

What else is happening in the markets today? Dig in...