Global trends, macroeconomic data, trading activity of foreign investors to drive market trends: Analysts

Macroeconomic data announcements, global trends and trading activity of foreign investors would guide momentum in the equity market this week, analysts said. Markets ended a five-week losing streak and gained nearly a per cent last week, helped by a sharp rebound on Friday.

Last week, the BSE benchmark jumped 500.65 points or 0.77 per cent and the Nifty gained 169.5 points or 0.87 per cent.

The domestic PMI (Purchasing Managers’ Index) data for the services sector will be announced on Tuesday.

“On the macro front, some of the key factors that will be in focus in the coming days are India’s S&P global services PMI, Euro zone S&P global composite PMI, UK services PMI, Euro Zone Q2 GDP, US factory orders, S&P Global US services PMI, crude oil prices, initial jobless claims, FII (Foreign Institutional Investors) and DII (Domestic Institutional Investors) activities will drive the market,” Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said.

In the absence of any major triggers from the domestic market, sentiments will be driven by global cues, including the release of US payroll and PMI data, said Vinod Nair, Head of Research at Geojit Financial Services.

Besides, movement of crude oil and trend in rupee against the US dollar will also influence trading patterns in the market.

“After a sluggish to negative sentiment last month, foreign investors could be looking at Indian markets with fresh optimism once again, as the nation continues to overcome global economic challenges and perform well on most economic parameters.

“While foreign investors have already been net buyers of local shares in the past five sessions, the recent macroeconomic numbers like strong Q1 GDP growth, robust August GST collections, and upbeat PMI data for last month should bolster their confidence in local markets,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd.

Manufacturing activities in India gained momentum in August as new orders and output increased at the quickest rates in nearly three years, according to a survey released on Friday. GST collections grew by 11 per cent to over Rs 1.59 lakh crore in August on the back of improved compliance and reduced evasion, with experts forecasting higher mop-up to continue in the upcoming festive season.

Nifty’s attempt to surpass 20000-20200 may attract profit booking; BHEL, Hero Motocorp among stocks to buy

By Ajit Mishra

Markets have been moving from strength to strength after reclaiming the record high, with a noticeable rise in the positive momentum. Apart from the rotational buying across sectors, a steady recovery in the global counterparts, especially the US, is further supporting the sentiment. In line with the benchmark index, the broader indices are also seeing a stable rise. While the midcap index is already at a record high, the smallcap index has recovered strongly in the last four months and is trading just 4% from that mark.

On the benchmark front, we recommend planning fresh positional trades on dips around the key support zone. At the same time, trends could be mixed on the sectoral front wherein we are eyeing consolidation in the IT after the recent slide while auto and FMCG may see some profit taking too. At the same time, we feel banking, financials, pharma and metal would continue their northward bias so plan your stock-specific positions accordingly.

Nifty (CMP: 19,672.35)

Nifty has almost tested the new milestone i.e. 20,000 and gained over 7% in the last four weeks, which has pushed the oscillators into the overbought zone. It would be healthy if we see some consolidation now, before making further progress. In case of any dip, we believe Nifty would respect the 19,300-19500 zone i.e. the previous consolidation area while any attempt to surpass the 20,000-20,200 zone may attract profit booking.

Bank Nifty (CMP: 45,923.05)

The banking index has regained momentum of late and is likely to inch gradually upward toward the 49000+ zone. We are seeing participation across the pack but we reiterate our preference for the private banking majors citing less volatility and their overall positioning.

Stocks to Watch

Bullish –BHEL, Canbk, Colpal, Gail, Heromotoco, IDFC First Bank, Marico, ONGC, Tatacomm

Bearish – IEX, Jublfood, UPL, Voltas

(Ajit Mishra, SVP- Technical Research, Religare Broking. Views expressed are the author’s own. Please consult your financial advisor before investing.)

Wall Street set to open higher with focus on Nvidia’s high-stakes results

Wall Street was set to open higher on Wednesday, with the spotlight firmly on Nvidia as investors wait to see if its results could reignite an artificial intelligence-powered rally in megacap growth stocks.Rising bets that Nvidia’s revenue target will once again surpass Wall Street estimates pushed the chipmaker’s stock to a record high on Tuesday, but analysts also fear that a failure to match investor expectations could trigger a wider selloff.Its shares were up 0.8% in premarket trading.

A blowout forecast from the company last quarter has been one of the biggest catalysts for the S&P 500’s 14% gain so far this year.”When the market takes a focus on one stock, any disappointment could have a reverberation in the market,” said Andre Bakhos, managing member at Ingenium Analytics LLC.

Tesla fell 2.1% after a report that the company lowered the production target of its German plant.Supporting equities on Wednesday, the yield on the 10-year U.S. Treasury note slipped from near 16-year highs hit in the previous session.Data showedthe interest rate on the U.S. 30-year fixed-rate mortgage last week shot to the highest since December 2000.S&P Global’s flash U.S. Composite PMI index for August, due at 9:45 am ET, could provide additional clues on the path for interest rates ahead of a speech by Fed Chair Jerome Powell at Jackson Hole on Friday.

Traders’ bet of a rate hike pause by the Fed next month stands at 86.5%, according to CME Group’s FedWatch tool. A slew of downbeat earnings reports also kept a lid on market sentiment. Sport retailers Nike and Under Armour fell 3.6% and 1.5% , respectively, after a downbeat profit forecast from Foot Locker, whose shares slumped 30.8%.Shares of U.S. analog chipmakers NXP Semiconductors , Texas Instruments and ON Semiconductor slipped between 2% and 3% after Analog Devices reported lower quarterly revenue.

At 8:24 a.m. ET, Dow e-minis were up 34 points, or 0.1%, S&P 500 e-minis were up 6.5 points, or 0.15%, and Nasdaq 100 e-minis were up 25.5 points, or 0.17%.Shares of drugmakers Gilead Sciences and Merck & Co advanced about 3% each after Swiss rival Roche inadvertently published positive lung cancer drug trial data.Peloton Interactive shares plunged 27.8% after the fitness equipment maker pushed back its cash-flow positive target to 2024.

Share Market Highlights: Nifty settles under 19400, Sensex ends flat; Adani Ent jumps 2%, metal stocks shine

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic indices NSE Nifty 50 and BSE Sensex gave up their earlier gains. Nifty concluded just below 19,400, landing at 19,396.45 with a marginal 0.01% gain, while Sensex wrapped up with a slight increase of 4 points, standing at 65,220.03. Nifty Midcap 100 rose over 1.1%, while the smallcap index added around 0.8%. Fear gauge India VIX settled lower, around 11.75. In the broader markets, Bank Nifty settled marginally lower, falling for eight of the nine sessions. Nifty PSU Bank shares dragged the index, while metal, media and FMCG stocks outperformed. Jio Financial Services close 5% lower for the second consecutive session.

Live Updates

Share Market Today LIVE | Sensex, Nifty, BSE, NSE, Share Prices, Stock Market News Updates 22 August 2023

15:40 (IST) 22 Aug 2023 Global uncertainties weigh

“Despite the support of positive international markets, Indian equities struggled to maintain their upward momentum due to lingering apprehensions over ongoing global uncertainties. Sectors closely tied to the Western economy, such as IT and pharma, faced challenges, while domestic-oriented sectors, alongside mid- and small-caps, exhibited resilience and gained traction.”

– Vinod Nair, Head of Research at Geojit Financial Services.

15:34 (IST) 22 Aug 2023 Markets at close

Domestic indices NSE Nifty 50 and BSE Sensex erased their gains towards the end of trade. Nifty settled under 19,400 at 19,396.45, up 0.01%, while Sensex closed 4 points higher at 65,220.03.

14:15 (IST) 22 Aug 2023 Robust sentiment in markets

“The positive market breadth portrays a robust sentiment, with the IT & Metal sector being the primary benefactor to rejuvenated market sentiments. The global bourses are to be watched closely for the immediate trend setup while focusing on selective stock-centric moves for an outperformance. Meanwhile, the Midcap index is keeping up the pace and traders are advised to keep focusing on such thematic movers for the time being.”

– Sneha Seth, Derivatives Research Analyst, Angel One

13:24 (IST) 22 Aug 2023 Nifty Midcap 100 up 1%

Nifty Midcap 100 jumps almost 1% in trade as constituents Tata Teleservices (Maharashtra), Trident and Torrent Power.

12:34 (IST) 22 Aug 2023 Gold outlook

“The strengthening of US Treasury yields poses a risk for gold. Nevertheless, gold has made some gains recently due to renewed safe-haven demand, which has been driven by concerns about the Chinese economy. However, these gains have been relatively modest. The participation in gold continues to decline and remains at a very low level, amid declining prices of gold. We believe this decline has paved the way for a favourable investment opportunity.”

– Abans

12:08 (IST) 22 Aug 2023 Glenmark Pharma down 1.4%

Shares of Glenmark Pharma slip 1.4% in trade as the pharma player was fined $30 million to resolve all of its court proceedings with the DOJ involving historical pricing practices by former employees relating to the generic drug pravastatin between 2013 and 2015.

11:19 (IST) 22 Aug 2023 Adani Enterprises gains 3%

Shares of Adani Enterprises climbed over 3% on Tuesday after billionaire Gautam Adani-led promoter group increased its stake in the flagship firm.

11:13 (IST) 22 Aug 2023 Aeroflex Industries IPO subscribed

Aeroflex Industries IPO subscribed fully at 10.54 am on Day 1.

Overall 1.00 times

QIB 0.00 timesNII 1.31 times Retail 1.46 times Reservation 0.40 10:07 (IST) 22 Aug 2023 FII positions

FIIs increased their future index long position holdings by 2.47%, increased future index shorts by -0.75% and in index options by 9.35% in Call longs, 14.46% in Call short, 9.51% in Put longs and 23.85% in Put shorts.

09:42 (IST) 22 Aug 2023 Currency outlook

“Momentum went missing yesterday again, but with consolidation failing to breach the 83-82.9 supports. This keeps the 83.7 to 84.5 move intact, with downside marker placed at 82.9.”

– Anand James, Chief Market Strategist at Geojit Financial Services.

09:30 (IST) 22 Aug 2023 FII inflows

“Sustained rise in FII inflows will happen only if the US bond yields decline. Clarity on this will emerge only after trends in US inflation and Fed’s monetary stance indicate softening. Investors should wait for clarity on these macro trends.”

– V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

09:26 (IST) 22 Aug 2023 Markets at open

Benchmarks NSE Nifty 50 and BSE Sensex opened in positive territory on Tuesday. Nifty 50 surpassed the 19,400 mark , and Sensex added about 50 points, roughly flat at 65,272.42.

08:38 (IST) 22 Aug 2023 Bank Nifty outlook

“Bank Nifty has also witnessed a pullback and snapped the seven-day losing streak. It has closed in the green and more importantly, holding on to the support of the 20-week moving average (44,000) which indicates that a pullback is likely in the short term. The pullback can last till the 44,400 – 44,500 zone,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

08:25 (IST) 22 Aug 2023 OI data

Coming to the OI Data, on the call side, the highest OI observed at 19500 followed by 19600 strike prices while on the put side, the highest OI is at 19300 strike price.

08:20 (IST) 22 Aug 2023 FII, DII data

Foreign institutional investors (FII) sold shares worth net Rs 1,901.10 crore, while domestic institutional investors (DII) bought shares worth net Rs 626.25 crore on 21 August, according to the provisional data available on the NSE.

08:09 (IST) 22 Aug 2023 Crude oil

Oil prices were up in early trade on Tuesday ahead of data later expected to show a draw in U.S. crude oil and gasoline inventories, though persistent concerns over a slowdown in China’s economy limited the upside.

08:09 (IST) 22 Aug 2023 Asian Markets

Shares in the Asia-Pacific region were trading in the green on Tuesday. China’s Shanghai Composite and Shenzhen Component was higher by 0.91% and lower by 0.09% respectively. Japan’s Nikkei 225 traded with gains of 0.56%. South Korea’s Kospi advanced 0.39% while Hong Kong’s Hang Seng gained 0.48%. The Taiwan Weighted index recorded a gain of 0.26%.

08:09 (IST) 22 Aug 2023 Wall Street

 The Nasdaq ended more than 1% higher and the S&P 500 also rose on Monday, with shares of Nvidia jumping as investors were optimistic ahead of its earnings this week, and other technology-related stocks gaining, according to Reuters. The Dow Jones Industrial Average edged down 0.1%, while the S&P 500 advanced 0.7%, and the Nasdaq Composite surged 1.6%.

Will Nifty top 19400 or slip in trade? See GIFT Nifty, FII data, crude, F&O ban, more before market opens

GIFT Nifty traded 0.01% higher during Thursday’s early trading session at 19,480.5, indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. The equity benchmarks closed flat on Wednesday, paring most intraday gains. Nifty 50 settled higher by 0.02% at 19,347.45 while Sensex gained 65,087.25, higher by 11 points.

“Positive sentiment initially propelled domestic equities, buoyed by softer US labour market data that caused a retreat in US bond yields, alleviating concerns about rate hikes. This positive outlook was reinforced by Chinese banks’ move to reduce existing mortgage rates, favourably impacting Indian metal stocks. However, gains were tempered as the day progressed, primarily due to weakness in global markets attributed to lacklustre economic data from Europe. Banking stocks bore the brunt of this downturn, while mid- and small-cap segments displayed resilience amid the market dynamics,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Asian shares were set for the worst month since February, with sentiment hurt by still-gloomy China factory activity, while investors were also cautious ahead of a barrage of U.S. data that could add to bets that interest rates have peaked. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.1% but was still headed for a monthly loss of 5.9%, the largest since February.

Chinese indices Shanghai Composite and Shenzhen Component decreased by 0.15% and 0.03% respectively. Japan’s Nikkei-225 rose by 0.56%, while Hong Kong’s Hang Seng index added 0.53%. South Korea’s KOSPI dropped by 0.43% while the Taiwan index slipped by 0.38%.

Crude Oil

Global oil prices were up in early trade on Thursday backed by tighter U.S. supply, with a focus on China factory activity due later in the day amid recent weak economic expansion data in the world’s second-biggest economy. Brent crude futures contract for October and which expires on Thursday was up 14 cents, or 0.16%, at $86 per barrel and the more active November contract was up 10 cents, or 0.12%, at $85.34.

FII/DII Data

Foreign institutional investors (FII) sold shares worth net Rs 494.68 crore, while domestic institutional investors (DII) bought shares worth net Rs 1,323.24 crore on 30 August, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has Indiabulls Housing Finance and BHEL securities on its F&O ban list for 31 August. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.

Bank Nifty Outlook

“The Bank Nifty index experienced a significant bearish takeover, leading to a rapid correction of 600 points from the day’s high. As the index navigates this downward movement, its next significant support on the downside is positioned at 44,000. This level is crucial, given the substantial open interest built up on the put side.The overall market sentiment remains bearish, with considerable resistance anticipated around the range of 44,500 to 44,700 levels,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

Technical View

“The short term trend of Nifty remains choppy. The lack of strength to sustain the upside bounce on Wednesday could possibly drag Nifty down to its immediate supports of 19250-19200 levels in the short term. On the upper side, the area of 19450 is likely to be a strong resistance,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

(With agency inputs.)

NaMoste Pyramids! PM Narendra Modi visits Pyramids of Giza in Egypt – See Photos

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Prime Minister Narendra Modi on Sunday visited the world famous Pyramids of Giza in Egypt. The Great Pyramid of Giza was earlier considered to be one of the seven wonders of the world. The Prime Minister was on a two-day state visit to Egypt. He visited the pyramids accompanied by Egyptian Prime Minister Mostafa Madbouly. During his visit to Egypt, PM Modi engaged in discussions with Egyptian President Abdel Fattah el-Sisi, in which they focused on the nations’ bilateral cooperation in various sectors. (Image: PTI)

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PM Modi thanked Egyptian Prime Minister for accompanying him to the pyramids. (Image: PTI)

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Prime Minister Narendra Modi with Egyptian Prime Minister Mostafa Madbouly during his visit to the Great Pyramid of Giza on June 25 (Image: PTI)

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Prime Minister Narendra Modi snapped in front of the pyramids. (Image: PTI)

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PM Modi also sought details about the Great Pyramid of Giza. (Image: PTI)

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PM Modi poses with Egyptian Prime Minister Mostafa Madbouly in front of the Great Sphinx of Giza. (Image: PTI)

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The Great Sphinx of Giza is a limestone statue of a reclining sphinx. (Image: PTI)

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His visit emphasised the historical ties shared by India and Egypt. (Image: PTI)

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PM Modi said he and Madbouly had rich discussion on the cultural histories of both India and Egypt. (Image: PTI)

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This was Prime Minister Narendra Modi’s first state visit to Egypt. (Image: PTI)

Oil rises on China, US economic data and OPEC+ cut expectations

Oil prices ticked up in Asian morning trade on Monday, as market sentiment was buoyed by positive China and U.S. economic data, as well as expectations of ongoing crude supply cuts from major producers.

Brent crude was up 17 cents, or 0.2%, at $88.72 a barrel at 0015 GMT. U.S. West Texas Intermediate crude (WTI) rose 25 cents, roughly 0.3%, to $85.80.

On the demand side, China’s manufacturing activity unexpectedly expanded in August, data from Caixin’s manufacturing PMI survey indicated, leading to renewed optimism about the economic health of the world’s largest oil importer.

A series of economic support measures announced by Beijing last week, such as deposit rate cuts at some of the country’s largest state-owned banks and an easing of borrowing rules for home buyers, have also supported prices.

However, investors continue to await more substantial moves to prop up the country’s embattled property sector, which has been one of main drags on the Chinese economy since its emergence from the pandemic.

In the U.S., employment data was higher than expected on Friday, with nonfarm payrolls increasing by 187,000 jobs last month.

A broader cooling of the U.S. labour market, as seen in slowing job growth, reduced the chances of further rate hikes by the Federal Reserve in the immediate future, analysts said.

Expectations of tightening oil supplies have grown after Russian Deputy Prime Minister Alexander Novak’s remarks on Thursday that Russia had agreed with partners in the Organization of the Petroleum Exporting Countries (OPEC) on the parameters for continued export cuts. An official announcement with details of the planned cuts is expected this week.

Russia has already said it will cut exports by 300,000 barrels per day (bpd) in September, following a 500,000 bpd cut in August. Saudi Arabia is also expected to roll over a voluntary 1 million bpd cut into October.

Reliance Industries 46th AGM: Street expects IPO announcements, Jio Financial Services outlook, more

The upcoming annual general meeting for India’s largest company by market capitalisation, Reliance Industries, will drive cues for domestic markets for the week. The street is expecting a variety of announcements, including updates on IPO timelines for their telecommunications and retail businesses, insights into the progress of the 5G rollout, and revelations about investments in clean energy initiatives

The AGM is expected to guide the market trajectory, added Santosh Meena, Head of Research, Swastika Investmart, as anticipations touch highs. The 46th AGM (post-IPO) comes only a few days after the listing and subsequent muted performance of Jio Financial Services, said Prashanth Tapse, Senior VP (Research), Mehta Equities.

“All eyes would be on RIL AGM and its announcement focusing on Jio Financial future outlook post demerger. RIL has a lot of plans on cards for value unlocking which started from Jio Financials but first initial reactions post listing was not as street expectations. I believe Mukesh Ambani would be focusing more on the Jio Financial plan of action in coming days, which would give a road clear for further value unlocking of retail and Jio telecom ventures,” said Prashanth Tapse.

IPO outlook

The market is eagerly awaiting further value unlocking with the Reliance Retail IPO and Reliance Jio IPO. “If not any concrete announcement then a hint on possible launch of these two much awaited IPOs are also expected from RIL AGM 2023. Apart from this, some concrete information about Jio Financial Services after JFSL share listing is also on the radar of markets,” said Saurabh Jain, Vice President — Research, SMC Global Securities.

Too big for success?

The groundwork for the Reliance Retail Venture IPO has already begun, said Omkar Kamtekar, Research Analyst, Bonanza Portfolio. Reliance Industries announced that Qatar Investment Authority bought 1% stake for Rs 8,278 crore, which ascribed a valuation of Rs 8.25 lakh crore for RRVL. “Additionally, it is expected more such deals could be make in the coming quarters which would be crucial because at the current valuation of $100 billion or Rs 8.25 lakh crore, RRVL’s IPO size will be too big to be successful as there isn’t adequate liquidity to absorb such an issue. Hence, how will RIL navigate the value unlocking process of RRVL will be key to look out.”

RIL: Technical Outlook

After the breakout of the long trend line and triangle pattern formation on the longer timeframe, Reliance Industries has seen profit booking from the higher levels, said Pravesh Gour, Senior Technical Analyst, Swastika Investmart. While the index heavyweight retested its previous breakout levels at around Rs 2,420, the structure of the counter is still lucrative for long-term investors as it is trading above its important moving averages (100 and 200 DMA). “On the upside, Rs 2,550 is an immediate hurdle; above this, we can expect a move towards Rs. 2630. On the downside, Rs 2,420 is a strong demand zone during any correction,” he added.

Meet Sudha Reddy, the director of MEIL; know how she started her journey from a small town in Andhra Pradesh and became a successful billionaire

On December 10, 1978, a girl was born in the Vuyyura in Andhra Pradesh, she went on to become an inspiration to many by choosing an unconventional path. That girl is Sudha Reddy. A businesswoman, entrepreneur, philanthropist, and fashion and art connoisseur, Reddy went on to achieve a name for herself in the corporate world that was once alien to women.

Reddy lived with her parents, grandparents, and an elder sister growing up. She belonged to a simple family with a protective environment. Her father. K. B. Reddy worked with the State Bank of India and her mother Vijaya was a housewife. Her grandparents had an agricultural background and that’s where her interest in microbiology originated from. She completed her primary schooling in Vuyyuru and later graduated in microbiology.

Her professional journey at MEIL began with her involvement in pivotal projects which transitioned into overseeing her family’s properties and investments. Her career trajectory then ascended as she assumed the role of the Director at MEIL, where she not only contributed to the company’s core operations but also directed its CSR initiatives, wellness programs, and hospitality ventures.

Talking about her coming from a middle-class family to a business conglomerate, Sudha says, “There was no transition as such, what transpired was just a union between two families. However, I have received immense support and courage from my family. Especially my husband, who is a constant supporter and a visionary in my journey. I learned the ropes of how the company operates and steadily found my place within it.”

While Sudha initially focused on philanthropic and social welfare activities, her engagement with MEIL’s CSR initiatives allowed her to gain insights into various aspects of business operations. As she delved deeper into CSR projects, she recognised the significant impact that a well-managed and responsible business could have on society. This exposure sparked her interest in the broader aspects of running a company, including strategic planning, operations, and management.

For her impressive achievements, Sudha has been honoured with the Young Indian Women Achievers Under 45 Award in 2021, and Woman Pioneer of the Year Award in 2023 by AsiaOne Magazine. She was also featured on Tycoon Global Media & Magazines: December Cover Personality and on Season 10 of ET Now’s Leaders of Tomorrow in 2023. From a very young age, Sudha Reddy exhibited signs of greatness and her professional journey is a testament to that potential.

Rishabh Instruments IPO opens for subscription, GMP rises; should you subscribe to the public issue?

Rishabh Instruments IPO: Rishabh Instrument IPO opened for public subscription on Wednesday, August 30, and will close on Friday, September 1. The company collected Rs 147.23 Crore from the Anchor investors ahead of the public issue. The price band for its public issue at Rs 418-441 per equity share of face value Rs 10 each.

The IPO comprises a fresh issue of 1,700,680 shares up to Rs 75 Crore and an offer for sale (OFS) of 9,428,178 shares up to Rs 415.78 Crore. The shares are likely to get credited on September 8 and listed on the stock exchanges on September 11, according to reports.

Rishabh Instruments is a global energy efficiency solution company focused on electrical automation, metering, and measurement, precision engineered products with diverse applications across industries including power, automotive, and industrial sectors. The company supplies electrical measurement and process optimization equipment and is engaged in designing, developing manufacturing, and sale of devices under its brand across several sectors.

Should you apply for the Rishabh Instrument IPO?

Mehta Equities: Subscribe with Risk

“By looking at the financials historically, Rishabh has delivered a healthy growth in revenue from operation of 20%/21% in FY2022/23 and a subdued bottom-line of 0.07% in FY 2023. On Valuation parse at an upper price band of ₹ 441/- and based on annualized earnings and fully diluted post-IPO paid-up capital, the issue is asking for a Market Cap of ₹ 1674 Cr with P/E of 33.69x on consolidated basis, which seems the issue is fully priced-in looking at growth and expected outlook. Given the company’s export oriented business which is almost 66% of revenue and its strong brand in niche products segment demand, we are inclined to recommend risk-taking investors to “Subscribe with Risk” to the IPO,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

Anand Rathi: Subscribe

“At the upper price band, the company is valuing at P/E of 34.3x FY23 earnings with a market cap of ₹16,740 million post issue of equity shares and return on net worth of 11.67%. We believe that issue is fairly priced,” said brokerage firm Anand Rathi.

(The recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)