ETMarkets Morning Podcast: Grey market sends out weak signals for Macrotech IPO

>> Retail traders wager on possible Bank Nifty swings
>> Flipkart readies IPO for later this year, Walmart investors cheer
>> Grey market sending out weak signals for Macrotech IPO
>> Sebi may cut minimum investment limit for REITs

Hi there. Welcome to ETMarkets Morning, the show about money, business and markets. I am Sandeep Singh.

Let’s start with a quick glance on the state of the markets.

Dalal Street might see a positive start today going by the gains Nifty futures quoted at on Singapore Exchange this morning. Stocks in other Asian markets have had a sluggish start after Wall Street pulled back from record highs in overnight trade. US Treasury yields dipped, with 5-year notes leading the decline. Benchmark 10-year notes yielded 1.65% against 1.72% late on Monday. In currencies, the rupee slipped 12 paise on Tuesday while the dollar hit a two-week low against a basket of world currencies this morning. Meanwhile, crude oil prices partially rebounded from the previous session’s losses, lifted by strong data from the US and China.

That said, here’s what else is making news.

Some retail traders on Dalal Street are hoping to make a killing on possible swings in Bank Nifty following RBI’s decision on a benchmark lending rate on April 7. They have initiated a market-neutral strategy on Bank Nifty options, expecting a spike in volatility. That strategy will deliver handsomely if Bank Nifty moves in excess of 824 points above or below Tuesday’s spot closing near 32,500.

The grey market, or the unofficial market for trading in unlisted shares, is sending out weak signals for the Macrotech IPO. Dealers active in the unofficial market said the premium enjoyed by the company’s unlisted shares has dried up to Rs 2-4 level. The Rs 2,500 crore IPO, priced at Rs 483-486, opens for subscription today and will close on April 9.

Sebi is weighing a proposal that seeks to reduce the minimum investment limit in REITs to facilitate retail participation in this asset class, especially at a time when New Delhi is keen on monetising some of its income-earning properties. The government is said to have reached out to Sebi with a proposal and chances are that the investment threshold will be halved from the current floor of Rs 50,000.

Telecom giants Airtel and Reliance Jio, which have often been at loggerheads, came together for a near Rs 1,500-crore spectrum trading deal as they took steps to rationalise and monetise their spectrum holdings just weeks after the conclusion of a mega airwave sale by the government. According to the agreement, Jio will acquire some of Airtel’s spectrum in the 800 MHz band in AP, Delhi and Mumbai circles at an aggregate deal value of about Rs 1,497 crore. Airtel will receive Rs 1,038 crore from Jio for the transfer.

The Indian e-commerce giant Flipkart, controlled by Walmart, is making progress toward an initial public offering as soon as the fourth quarter of this year, according to people familiar with the matter. The US retail giant has set up an internal IPO team for Flipkart and is leaning toward a traditional debut in the US, said the people, asking not to be named because the details are private. Walmart shares rose as much as 1.1% to $140.92 in New York trading Tuesday on the news, before retreating.

LASTLY,

Fresh curbs to control the pandemic are beginning to affect economic activity indicators. Besides Nomura’s business resumption index, ICICI Securities’ financial conditions index and demand conditions index are seeing major dips. The score fell to 8.5 in March from 9.6 in February and 8.8 in March 2020 as financial conditions worsened, tightening to their worst level since the onset of the pandemic. From March 2020 to February 2021, FCI had averaged at 9.3, reaching its best score in October-December 2020.

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

Axis Bank has become a co-promoter of Max Life Insurance after a regulatory go-ahead from the Insurance Regulatory Development Authority of India.

Shares of property developer Sobha soared 16% to ₹498.95 on Tuesday as brokerages cheered the company’s best-ever pre-sales in the fourth quarter of FY21 fueled by robust demand across segments.

Private sector RBL Bank is targeting to on-board more small businesses after a recent tie-up with the UK-based financial services platform Tide, a bank official said on Tuesday.

Homegrown auto major Tata Motors (TaMo) has claimed the third position in passenger vehicle sales for the financial year 2020-21.

Tata Steel has reported a 16% jump in sales at 4.67 million tonnes during the last quarter of FY 21, with crude steel production flat at 4.75 million tonnes.

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 put with us for all the market news through the day. Happy investing!