Oil on the Boil, IDBI Bank Stake Sale, and Buzzing Stocks Today

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On Monday, Indian share markets witnessed volatile trading activity throughout the day and ended marginally higher.

Benchmark indices pared gains as the session progressed to end mildly higher as commodity prices nosedived amid stronger dollar and on concerns over spread of Covid-19.

At the closing bell on Monday, the BSE Sensex stood higher by 125 points (up 0.2%).

Meanwhile, the NSE Nifty closed higher by 20 points (up 0.1%).

M&M and Tech Mahindra were among the top gainers.

Tata Consumer Products and Coal India, on the other hand, were among the top losers.

Broader markets fell more comparatively. The BSE Mid Cap index and the BSE Small Cap index ended down by 1.1% and 0.7%, respectively.

On the sectoral front, stocks from the banking sector, IT sector and finance sector witnessed buying interest.

However, metal stocks witnessed selling.

Shares of Tata Chemicals and Laurus Labs and hit their respective 52-week highs.

Gold prices for the latest contract on MCX were trading down by 1% at Rs 46,168 per 10 grams at the time of closing stock market hours yesterday.

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Top Buzzing Stocks Today

BASF India will be among the top buzzing stocks today.

Shares of BASF India surged 12% yesterday after the company returned to black in the June 2021 quarter. The speciality chemicals maker reported a net profit of Rs 2 bn for the quarter against a loss of Rs 311.8 m during the corresponding period last year.

Vodafone Idea share price will also be in focus today.

Lenders of Vodafone Idea, led by State Bank of India (SBI), have said converting the debt of cash-strapped Vi to equity is one option to get out of the precarious position banks are in.

At a meeting with the telecom department last week on Friday to discuss the stress in the sector, the lenders, however, said that since Vodafone Idea had not defaulted on its debts so far, they cannot take any action yet.

Market participants will also track shares of Aarti Surfactants, Coal India, CAMS and Lupin as these companies are scheduled to announce their quarterly results today.

To know more, you can check out the latest earnings of top companies.

Results Corner

Piramal Enterprises has reported strong June quarter results.

The company reported consolidated profit after tax of Rs 5.3 bn, up 8% year on year (YoY), despite consolidated revenues coming in flat at Rs 29.1 bn YoY.

The bottomline was aided by interest expenses, which declined 11% YoY on the back of meaningful decline in debt on the balance sheet and progressively lower cost of borrowings.

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During the quarter, the company's pharma segment delivered robust revenue growth of 31% YoY, led by the Complex Hospital Generics (CHG) and India Consumer Products (ICP) businesses.

Meanwhile, recently listed Sona BLW Precision Forgings also reported strong set of numbers.

The company is a leading automotive technology company providing mission-critical systems and components for electrified and non-electrified powertrain segments.

It had made its market debut on 24 June 2021.

In the June quarter, the company reported a strong 226% YoY revenue growth of Rs 5.1 bn, due to 565% growth in EV revenue and lockdown impact in the comparable quarter last year.

EBITDA margin improved YoY from 19% to 27.7% in June 2021 due to better product mix and operating leverage.

IDBI Bank Stake Sale

As many as seven firms, including JM Financial, Ernst & Young, and Deloitte, have bid for managing the strategic sale of IDBI Bank.

These firms would make a virtual presentation before the department of investment and public asset management (DIPAM), which is handling the sale process.

The companies that have bid for acting as transaction advisor are Deloitte Touche Tohmatsu India limited liability partnership (LLP), Ernst & Young LLP, ICICI Securities, JM Financial, KPMG, RBSA Capital Advisors LLP and SBI Capital Markets.

DIPAM would appoint one transaction advisor for the strategic sale of IDBI Bank, in which the central government and LIC together own more than 94%.

LIC, currently having management control, has a 49.2% stake, while the government holds 45.5% in the bank. Non-promoter shareholding stands at 5.3%.

The exact quantum of stake dilution would be decided later.

The government in June invited bids from reputed professional consulting firms, investment bankers, merchant bankers, financial institutions, for facilitating or assisting DIPAM in the process of strategic disinvestment of IDBI Bank, along with transfer of management control, till completion of the transaction.

Oil on the Boil

In news from the commodity space, crude oil prices fell by 4% yesterday, extending last week's steep losses on the back of a rising US dollar and concerns that new coronavirus-related restrictions in Asia, especially China, could slow a global recovery in fuel demand.

A United Nations panel's dire warning on climate change also added to the gloomy mood after fires in Greece have razed homes and forests and parts of Europe suffered deadly floods last month.

Brent crude futures fell by US$2.82, or 4.2%, to US$67.88 a barrel after a 6% slump last week for their biggest weekly loss in four months.

US West Texas Intermediate (WTI) crude futures fell US$2.85, or 4.3%, to US$65.43 after plunging by nearly 7% last week.

Reports suggested to new restrictions in China, the world's second-largest oil consumer, as a major factor clouding the outlook for demand growth.

The restrictions include flight cancellations, warnings by 46 cities against travel and limits on public transport and taxi services in 144 of the worst hit areas.

On Monday China reported 125 new covid cases, up from 96 a day earlier. In Malaysia and Thailand, infections hit daily records.

We will keep you updated on the latest developments from this space. Stay tuned.

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