Author: Btech Traders

The Indian stock market benchmarks, the Sensex and the Nifty 50, rallied dramatically on Tuesday, August 6, a day after suffering hefty losses of 3%. Both indexes rose more than 1% in early trade despite conflicting indications.

 

The Sensex began at 78,981.97, up from its closing value of 78,759.40, then surged by more than 1% to reach 79,852.08. Conversely, the Nifty 50 began the day at 24,189.85, up from its closing value of 24,055.60, and gained more than 1% to retake the 24,382.60 mark.

The BSE Midcap and Smallcap indices increased by two percent each, indicating that the market’s mid and smallcap segments enjoyed larger increases.

Investors gained over ₹7 lakh crore in value in less than 30 minutes of trading as the total market capitalization of the companies listed on the BSE increased to approximately ₹449 lakh crore from approximately ₹442 lakh crore in the previous session.
After rising by 43% the previous session, the volatility index India VIX saw a sharp decrease of about 14%. The fear gauge’s abrupt swings reveal the level of short-term market uncertainty.

Why is the Indian stock market rising today?

Opening Bell: On Monday, Indian stock markets saw a sharp decline at opening. The BSE Sensex fell 2,393 points to 78,588, while the Nifty50 index fell 405 points to 24,302 points.

In early Monday morning trade on the NSE, the biggest losses were Hindalco and Maruti, which fell 4% apiece, and Tata Motors, Tata Steel, and Titan, which fell 3% apiece.

Asia-Pacific markets suffered a significant sell-off on Monday morning, continuing the sell-off that began on Friday. Investors were anticipating important trade data from China and Taiwan this week, as well as impending central bank announcements from Australia and India.

The region’s losses were led by Japan’s markets, where the Nikkei 225 fell 5.77 percent and the Topix fell as much as 7.41 percent due to erratic trading.
The S&P/ASX 200 in Australia declined 2.78 percent, the Kospi in South Korea plummeted 4.32 percent, and the Kosdaq fell 4.78 percent. In the meantime, the Hang Seng index in Hong Kong also saw negative trading and a 1.59 percent decline.

Investors today will also be monitoring service sector activity data for the US, China, and India, among other nations.

A lower-than-expected July jobs report on Friday caused equities in the US to plummet dramatically, sparking fears of a possible recession. The Dow Jones Industrial Average dropped by 610.71 points, or 1.51%, the S&P 500 lost 1.84 percent, and the Nasdaq Composite sank by 2.43 percent.

 Stocks to Watch

 State Bank of India: SBI’s domestic deposits increased by 8.08 percent during the June quarter, accounting for 8.18 percent of the bank’s total deposit   growth. In the first quarter, the bank’s net interest margin (NIM) was 3.22 percent globally and 3.35 percent domestically.

 Divi’s Laboratories: The pharmaceutical company announced a net profit of Rs 430 crore, up 21% from Rs 356 crore in the previous year. First-quarter   revenue of Rs 2,118 crore represented a 19% increase over Rs 1,778 crore in the corresponding period last year.

 Ashoka Buildcon: The business won two projects worth about Rs 1,280.8 crore from the Mumbai Metropolitan Region Development Authority (MMRDA)   after coming in with the lowest bid. Two creek bridges are being designed and built as part of these projects: one from Gaimukh to Payegaon and the other from Kolshet to Kalher.


 Infosys, the nation’s second-largest exporter of software services, said on Saturday that it has received a notification from the Directorate General of GST  Intelligence (DGGI) terminating the pre-show cause notice proceedings. The notice had involved payments totaling Rs 3,898 crore for the fiscal year 2017-2018.

Here are 10 key points for investors regarding the Ola Electric IPO, which opens on August 2:

1. IPO Size: Ola Electric aims to raise ₹5,500 crore through the IPO, which includes a fresh capital component and an offer-for-sale (OFS) by existing shareholders.
2. IPO Dates: The IPO will open for institutional investors on August 2 and close for retail subscriptions on August 6.
3. Valuation: The company is expecting a valuation between $4.2 billion and $4.4 billion, which is lower than its previous funding round valuation of $5.4 billion.
4. Financial Performance: Ola Electric reported revenue of ₹5,009.8 crore in fiscal 2024, a significant increase from ₹2,630.9 crore in fiscal 2023, although it also posted a net loss of ₹1,584.4 crore.
5. Scooter Sales: The company sold 329,618 scooters in fiscal 2024, up from 156,251 in the previous fiscal year, indicating strong demand for its products.
6. Market Position: Ola Electric is a leading player in the electric scooter segment in India, which positions it well for future growth.
7. Use of Proceeds: The funds raised from the IPO will be used for business expansion, including scaling up manufacturing and enhancing product offerings.
8. Registrar: Link Intime India Private Limited will serve as the registrar for the IPO.
9. Lead Manager: The IPO will be managed by several financial institutions, ensuring a robust underwriting process.
10. First EV Startup IPO: This IPO marks a significant milestone as it is the first public offering by an electric vehicle startup in India, highlighting the growing interest in the EV sector.

Investors should consider these points carefully before making investment decisions regarding the Ola Electric IPO.