Jaikishan Parmar from Angel Broking on UTI AMC IPO

UTI AMC IPO got a subdued response, investor might have concerned about the recent outflow of AUM and subdued response for SIP of the Mutual fund Industry. UTI AMC subscribed 2.31 times on the third day. The retail portion subscribed 2.32 times, QIB 3.34times. However, UTI AMC has the potential to regain its market share and increase return ratio, said Parmar.

FY20 profitability was a bit compressed largely owing to a) Decline in management fees of about Rs 52cr due to issues in the debt mutual fund business. b) In some of the high-yield fixed-income funds, fresh subscriptions were stopped and exit load was reduced. C)Marked-to-market (MTM) loss on treasury investments. Board has approved a higher dividend polity which will also help to some extent improve the return ratio. UTI AMC has a well-diversified and strong presence in b 30 cities, where SEBI has allowed to charge additional 30 bps and these inflows are sticky. The company has penetrated well into in the B30 cities as its 250+ development officers and Chief Agents are based in B30 cities. The 24% of its overall AUM in B30 geographies, UTI has the highest concentration in B30 markets among the Top 10 AMCs. UTI AMC has launched its IPO at discount compared to listed peers, he added further. 

HDFC Bank’s Ravi Santhanam in Forbes list of World’s Most Influential CMOs

Ravi Santhanam, Chief Marketing Officer (CMO), HDFC Bank has been recognised in the Forbes list of ’The World’s Most Influential CMOs’. Ranked at Number 39, he is the only CMO of an Indian company to be featured in the illustrious list which includes marketing heads of Apple, BMW, Lego, Adobe, Microsoft, P&G among others. This is the 8th edition of this annual list released by Forbes with research partners Sprinklr and LinkedIn. This year, 427 global CMOs were eligible for consideration. It is generated using data from news reports, websites and social networks to measure influence. In its editorial, Forbes writes, ”Santhanam is a marketing leader who prioritizes personalized and relevant customer experience and believes that machine learning and data science are critical tools for marketers; he expressed so in a recent blog. And he led the Indian bank’s response to the coronavirus outbreak, launching the #HDFCBankSafetyGrid campaign to help people keep safe distance in public. More here

Yes Bank says outstanding deposits rose 15.7% in July-September quarter

Private lender Yes Bank on Monday said its outstanding deposits rose 15.7 percent at Rs 1.36 lakh crore sequentially in the July-September quarter. The loans and advances were up at 1.4 percent at Rs 1.67 lakh crore, while the credit-to-deposit ratio stood at 122.9 percent, against 140.2 percent. The liquidity coverage ratio, meanwhile, stood at 105.4 percent, against 114.1 percent, the bank said in a statement. The CASA ratio stood at 24.8 percent versus 30.8 percent year-on-year and against 25.8 percent quarter-on-quarter, the lender added. Yes Bank further said that these figures are only provisional and are released ahead of the official announcement of the financial results for the quarter ended September 30, 2020, which is subject to approval by the audit committee of the board, board of directors and limited review by the statutory auditors of the bank.

Angel Broking lists with 10% discount at Rs 275 over the issue price

The shares of Angel Broking debuted on the exchanges with 10 percent discount at Rs 275 apiece as against the issue price of Rs 306 on the BSE. The company had fixed its price band at Rs 305-Rs 306 per equity share. The Rs 600-crore public issue was subscribed 3.94 times during September 22-24., receiving bids for 5.4 crore equity shares as against the offer size of 1.37 crore equity shares, as per data available with the stock exchanges. The retail category was subscribed 4.31 times, qualified institutional buyers portion received 5.74 times subscription and non-institutional investors category, 69 percent.

Market Watch: Prakash Diwan, Market Expert

On Reliance Retail

I am quite positive on the stock, I have always been positive on the stock but now it seems like the floor of Rs 2,000 to Rs 2,200 is a buyable zone, any dip in the market and you will probably see a lot of other institutions mirroring this buying pattern, which the larger equity guys has demonstrated.

On TCS

Couple of weeks back, we spoke about the cash that would be required to pay off to the Mistry group, the Shapoorji Pallonji side of the family and this is exactly what was anticipated. There could be a little bit of a run up in anticipation of that. Ever since that announcement came and this was a potential way of building up cash for the group, TCS has started at least participating in the largecap IT rally that otherwise it stayed away from. If you see the kind of two-weeks after the last quarterly earnings, it participated and it kind of decided to say okay, this much is enough, let me sit on the sidelines but ever since this news came, there has been a little bit of activity and I think it will continue. I see at least get another 8-10 percent kind of an upside very quickly in the next week or so in anticipation of the positive move on the buyback.

Opening Bell: Sensex, Nifty start the week on a positive note; IT stocks, banks gain

Indian indices started the week on a positive note following gains in Asian peers and US stock futures after on hopes that President Donald Trump could be discharged from hospital later in the day. Trump, 74, was flown to hospital for treatment for the coronavirus on Friday, but his doctors say he has responded well and could return to the White House on Monday. At 9:18 am, the Sensex was trading 341 points higher at 39,038 while the Nifty rose 67 pointa at 11,484. Most key sectoral indices witnessed buying with IT, bank and auto indices leading the pack. Broader markets were also up with Nifty Midcap and Nifty Smallcap indices up over half a percent. TCS, Tata Motors, Hero Moto, Tata Steel, and Wipro were the top gainers on the Nifty50 index while Nestle, HDFC, Asian Paints, Bharti Airtel, and UltraTech Cement led the losses.

TCS Board to consider share buyback on Oct 7

India’s largest IT services firm Tata Consultancy Services’ board will meet later this week to consider a share buyback proposal. ”…the board of directors will consider a proposal for buyback of equity shares of the company, at its meeting to be held on October 7, 2020,” Tata Consultancy Services (TCS) said in a regulatory filing on Sunday night. No other details of the buyback plan were disclosed. The board is also slated to consider its financial results for the September quarter and declaration of a second interim dividend to the equity shareholders at that meeting. In 2018, the Mumbai-based company had undertaken a share buyback programme worth up to Rs 16,000 crore. The buyback, at Rs 2,100 per equity share, had entailed up to 7.61 crore shares. In 2017 too, TCS had undertaken a similar share purchase programme. TCS had announced the mega buyback offer as part of its long-term capital allocation policy of returning excess cash to shareholders.

Oil prices claw back 2% after upbeat signals from Trump doctors

Oil prices rose about 2 percent on Monday, lifted by comments from doctors for US President Donald Trump suggesting he could be discharged from hospital as soon as Monday, just a few days after his positive test for COVID-19 sparked widespread alarm. Trump’s health update eased political uncertainty in global markets, pushing Brent up to USD 39.96 a barrel by 0232 GMT, gaining 69 cents or 1.8 percent. US West Texas Intermediate (WTI) crude was at USD 37.81 a barrel, up 76 cents, or 2.1 percent. Prices had slumped more than 4 percent on Friday amid uncertainty surrounding Trump’s health, adding to concern that rising coronavirus case numbers that could dampen global economic recovery. But analysts said Monday’s rebound was driven by an easing of the worst fears about Trump’s health condition, albeit clouded by some mixed signals.

SEBI bars IIFL dealer, 5 others for front running trades using ‘mule’ accounts

Market regulator SEBI has barred Santosh B Singh, a dealer at broking firm IIFL, and five of his associates from any stock market transactions till further notice, for front running trades. The IIFL Group’s Mutual Fund schemes, Portfolio Management Services and Alternative Investment Funds were placing orders through IIFL dealer Santosh Singh. The SEBI probe found that during the period between December 2019 and August 2020, the trades placed by these funds were being ‘front run’.

Front running is the act of illegally buying or selling shares ahead of a substantial order by a client of a broking firm. If it is a large buy order, the front runner will buy the stock in his personal account and when the client’s order causes the stock price to rise, the front runner will sell out his position at a profit. Likewise, if it is a large sell order, the front runner will short sell the shares or its futures beforehand, and when the client’s order gets executed and causes the price to fall, the frontrunner will square up his short position at a profit. 

Here are a few global cues ahead of today’s trade

FPIs turn net sellers after 3 months in September; pull out Rs 3,419 crore

Snapping their three-month buying spree, overseas investors turned net sellers in Indian markets in September due to uncertainty ahead of the US presidential polls and surging coronavirus cases. Foreign investors withdrew Rs 3,419 crore on net basis from Indian markets in September, according to depositories data. A net of Rs 7,783 crore was withdrawn from equities while the debt segment saw inflows of Rs 4,364 crore. Foreign portfolio investors (FPI) adopted a cautious stance ahead of the US presidential election and renewed fears due to rising COVID-19 cases, among others, experts said. FPIs had been net buyers in Indian markets in the three straight months to August. They had invested Rs 46,532 crore in August, Rs 3,301 crore in July and Rs 24,053 crore in June on net basis. More here

Global Markets: U.S. stock futures rise on Trump’s health progress

U.S. stock futures rose on Monday on hopes that President Donald Trump could be discharged from hospital later in the day, easing some of the political uncertainty that shook Wall Street in the previous session. Trump, 74, was flown to hospital for treatment for the coronavirus on Friday, but his doctors say he has responded well and could return to the White House on Monday. S&P 500 e-mini futures rose 0.45 percent in early Asian trading, while Nasdaq futures gained 0.58 percent. Asian markets looked set to follow that lead with Australian S&P/ASX 200 futures up 1.16 percent, Japanese stock futures rising 0.75 percent, and Hong Kong’s Hang Seng index futures up 1.38 percent.

First up, here is quick catchup of what happened in the markets on Thursday

Indian shares ended over 1.5 percent higher on Thursday led by gains in banking and media stocks. Meanwhile, Renewed US stimulus hopes kept the global markets lifted as well further aiding the sentiment. The Sensex ended 629 points higher at 38,697 while the Nifty rose 169 points to settle at 11,417. For the week, both indices were up over 3 percent each.Broader markets underperformed indices but were also up for the day. Nifty Midcap and Nifty Smallcap rose 0.8 percent and 0.6 percent, respectively. All sectors also witnessed buying during the day led by Nifty Bank which rallied over 3.6 percent. Nifty Fin Services and Nifty Media also added around 3 percent each while auto, It and metal sectors rose -.8 percent for the day. The markets were closed on Friday on account of Gandhi Jayanti.

Welcome to CNBC-TV18’s Market Live Blog

Good morning, readers! I am Pranati Deva the market’s desk of CNBC-TV18. Welcome to our market blog, where we provide rolling live news coverage of the latest events in the stock market, business and economy. We will also get you instant reactions and guests from our stellar lineup of TV guests and in-house editors, researchers, and reporters. If you are an investor, here is wishing you a great trading day. Good luck!