ETMarkets Morning Podcast: Will Maruti stock shift to top gear now? | The Economic Times Podcast

Zomato stock may offer listing gains, but drag thereafter
FPIs turn gung-ho on insurance stocks, put in half of June flows in them
Piramal Capital’s NCD offers up to 9% per annum
Analysts say Maruti stock may shift to top gear now

Now lemme give you a quick glance on the state of the markets.

Dalal Street looked headed for a gap-up start this morning as Nifty futures traded some 72 points higher on the Singapore Exchange at 7 hours (IST). Other Asian market started the week higher after their US peers chalked fresh records on Friday in a broad-based rebound. Shares rose in South Korea and outperformed in Japan. Australia saw a modest advance amid a prolonged lockdown in the largest city, Sydney.

Elsewhere, US Treasuries traded steady after jumping on Friday. The euro was little changed after ECB President Christine Lagarde told investors to prepare for new guidance on monetary stimulus in 10 days. Oil was steady after its first weekly loss in seven amid an OPEC+ dispute over a production increase.

That said, here’s what is making news?

Indian stock investors will get a rare opportunity to invest in a professionally managed, new age start-up when Zomato’s IPO opens this week for subscription. Scarcity premium may keep demand high for Zomato’s IPO, and the stock may see good listing gains. But that may not necessarily warrant sustained outsized returns after listing, with several global investors turning bearish lately on the food delivery businesses of overseas listed peers, such as DoorDash, Grub-Hub and Deliveroo.

Piramal Capital and Housing Finance, a wholly-owned subsidiary of Piramal Enterprises is launching an NCD to raise up to Rs 1,000 crore with coupon rates of 8.35 per cent to 9 per cent per annum. Financial advisers say investors with moderate risk appetite could allocate up to 5% of their debt portfolio to the NCD, as the coupon rate is higher than banks’ average fixed deposit rates of 5.5-6%. The issue opens on July 12 and closes on July 23.

Foreign Portfolio Investors increased focus on the insurance companies in June amid the ebbing second wave of the pandemic. They invested nearly a billion dollars in insurance company stocks. It accounted for nearly 41% of the total inflow of $2.3 billion by FPIs during the month, according to the NSDL data. The share of the insurance sector in the total FPI equity portfolio reached 2.5% in June, the highest in nine months.
An effortless cruiser until 2018, Maruti stock seems to have taken a prolonged breather since. But a raft of brand new models could end the pause — and vault the stock back into the country’s top-ten leader-board of most valued companies. Analysts expect Maruti to double in the next three years, with personal mobility getting a move on in the aftermath of the pandemic. Maruti shares rallied nearly five times between 2013 and 2018, compared with the Nifty’s 83% returns. But since the beginning of 2019, the stock has yielded -1%, compared with 44% gains in the Nifty.

LASTLY,
As digital services and mutual fund plans boomed in tandem, SIP account registrations climbed — to a record high of 2.129 million in June from 1.671 million in March. The pace of new SIP additions in June is nearly double of the last two years’ average of 1.121 million accounts, underscoring democratisation of the equity culture in India.

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

NMDC has cut iron ore prices by about Rs 200 a tonne amid a fall in steel prices and a decline in bids at Odisha Mining Corporation’s recent auction.
Mahindra Financial Services has put together a strategy to make Sri Lanka a preferred market going ahead after completing a 58.2% acquisition in Sri Lanka-based Ideal Finance for Sri Lankan Rs 2 billion.
JSW Steel has reported a 62% year-on-year jump in crude steel production for the first quarter of the fiscal year at 4.93 million tonnes.
Online travel solutions provider EaseMyTrip is eyeing 100% growth this year on the back of demand recovery for tourism.
SpiceJet will start eight new flights connecting Madhya Pradesh with Maharashtra and Gujarat from Friday onwards

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