Indices snap 3-day winning streak to end flat; Sun Pharma, BPCL among top losers
Indian share markets witnessed volatility today and swung between gains and losses amid muted investor sentiment across global markets.
At the closing bell, the BSE Sensex stood lower by 17 points (down 0.1%).
Meanwhile, the NSE Nifty closed lower by 16 points (down 0.1%).
Bharti Airtel and HDFC were among the top gainers today.
Sun Pharma and BPCL, on the other hand, were among the top losers today.
The SGX Nifty was trading at 17,378, down by 27 points, at the time of writing.
The BSE MidCap index and the BSE SmallCap index ended down by 0.2% and 0.4%, respectively.
Sectoral indices ended on a mixed note with stocks in the realty sector, IT sector and oil & gas sector witnessing most of the selling pressure.
Telecom and consumer durables stocks, on the other hand, witnessed buying interest.
Shares of Linde India and Voltas hit their respective 52-week highs today.
Asian stock markets ended on a positive note today.
The Hang Seng and the Shanghai Composite ended the day up by 0.7% and 1.5%, respectively. The Nikkei ended up by 0.9% in today’s session.
US stock futures are trading on a flat note today with the Dow Futures trading up by 4 points.
The rupee is trading at 73.42 against the US$.
Gold prices for the latest contract on MCX are trading down by 0.4% at ₹47,250 per 10 grams.
In news from the textiles sector, Welspun India was among the top buzzing stocks today.
Welspun India share price rose nearly 10% on the BSE today after the company received USFDA approval for its 3-ply surgical mask.
It becomes the first Indian company to receive one of the stringent and most recognized quality approval i.e. US Food and Drug Administration (FDA) 510 (k) clearance for its 3-ply surgical mask.
Certified by BIS and CE already, this product from Welspun India has got all required certifications to supply to global markets including critical medical uses.
Dipali Goenka, MD and CEO of Welspun India said:
Welspun has always pioneered innovation and aimed to set global benchmarks for excellence. I am delighted that Welspun India is the first Indian Company to receive US FDA 510(k) clearance for its 3 Ply Surgical Masks.
This is a remarkable validation of our philosophy of keeping ‘people ahead of everything’ and we will channelize the momentum to further take the quality of healthcare products a notch higher at the global stage.
The company said that its 3-ply surgical masks are made with 100% polypropylene and offer 98% protection against bacterial load.
Simultaneously, the WN-95 FFP 2 respiratory masks have been CE certified, enabling exports to global markets including Europe, Asia Pacific, Middle East, and Africa amongst others.
Welspun India, part of US$2.7 bn Welspun Group, is a global leader in home textiles.
Welspun India share price ended the day up by 1.7% on the BSE.
Speaking of stocks, here's a pattern that if you see, you must sell your position. After all, exits are more important than entries.
In the chart below, we can see the head and shoulder pattern - the stock goes up, makes a high, falls a little bit, goes up to a higher high, does not make a higher low, rallies again, fails to make a new high, and then starts to break down.
This usually happens in a situation where a stock or index has typically been in a bull trend for a while. Spotting this correctly can help you save money.
Moving on to news from the IPO space:
Healthium Medtech Files Draft Papers to Raise Funds via IPO
Healthium Medtech, the country's second largest medical consumables and surgical sutures company, has filed draft papers with the market regulator to raise funds via initial public offering (IPO). Healthium Medtech is promoted by Apax Partners.
In June 2018, the London-based private equity fund acquired close to 100% stake from the then existing shareholders including TPG Growth, CX Partners and founding shareholders for around ₹19.5 bn. TPG Growth owned around 73% while CX Partners held a 12% stake in the firm.
The IPO comprises fresh issue of equity shares worth ₹3.9 bn and an offer for sale (OFS) of up to 39.10 million shares by existing shareholders and promoters.
The OFS will see sale of up to 39 million shares by Quinag Acquisition (FDI) and up to 1 lakh shares by Mahadevan Narayanamoni. Currently, Quinag Acquisition FDI holds 99.79% stake in the firm.
ICICI Securities, CLSA India, Credit Suisse Securities India and Nomura Financial Advisory and Securities India are lead managers to the issue.
Proceeds from the issue, worth ₹500.9 m, will be used to repay debt, while ₹1.8 bn will be invested into its arm Sironix, Clinisupplies and Quality Needles and ₹580 m will be used for acquisition and other strategic initiatives.
Healthium Medtech focusses on products used in surgical, post-surgical and chronic care. It operates across India, the UK and rest of the world and four focus areas, namely, advanced surgery, urology, arthroscopy and wound care.
How the IPO sails through remains to be seen. Meanwhile, stay tuned for more updates from this space.
(This article is syndicated from Equitymaster.com)