Sensex slips 537pts on weak global cues, Nifty holds 17K; Bajaj Fin dips 7%

CLOSING BELL: Life Insurance Corporation of India (LIC) will come out with its IPO on May 4

4:05 PM

Market view: Vinod Nair, Head of Research at Geojit Financial Services

Market continued to be gripped by high volatility following a heavy selloff in the global markets led by elevated energy crisis and weak Chinese economic outlook underpinned by prospects of US rate hikes. Investors are weighing the possibility of a global slowdown due to monetary tightening by central banks, lockdown in China and Russia -Ukraine war. This has resulted in an outflow of funds from equity markets to safe havens.

4:02 PM

European markets edge higher

4:01 PM

Analyst view on LIC IPO: Shivam Bajaj, Founder & CEO at Avener Capital

Amidst the volatile environment, the revision in the LIC IPO valuation demonstrates the keenness of the government to deliver on the IPO. The revised IPO valuation can potentially unlock a favourable opportunity for investors towards wealth creation. Being a landmark issue for the nation, LIC is expected to be pinned on global portfolio watchlists.

3:56 PM

Closing bell: 1,167 stocks advanced whereas over 2,000 declined

3:47 PM

Closing bell: Nifty Energy worst sectoral performer

3:45 PM

Closing bell: Broader markets tepid; India Vix spikes above 7%

3:43 PM

Closing bell: Bajaj Twins, Tata Consumer, Shree Cements top Nifty 50 losers

3:41 PM

Closing bell: Hero Moto, Tata Steel, Asian Paints top Nifty 50 gainers

3:37 PM

Closing bell: Only 5 out of 30 Sensex stocks in positive zone

3:36 PM

Closing bell: Barring Nifty Media, all sectors close in red

3:34 PM

Closing bell: Sensex drops over 500 points

3:33 PM

Closing bell: Nifty 50 closes below 17,050 levels

3:26 PM

KPIT Technologies surges over 11% on strong Q4

3:19 PM

Adani Power, Adani Wilmar, Adani Enterprises hit fresh 52-week high

3:14 PM

Energy basket lose steam; Adani Green, Adani Transmission shed over 3%

3:11 PM

LIC IPo :: 'Issue is being priced reasonably'

At the offer band, the LOC IPO is valued at a Price/Embedded value of 1.06-1.1 its Sep’21 EV of Rs. 539,686 crore which is at a significant discount to listed private life insurance companies which trade at P/EV of 2.5-3.9x their Dec’21 EV.

While HDFC Life Insurance is trading at a P/EV of 3.9x SBI Life and ICICI Pru Life trade at 3.2x and 2.5x their Dec’21 embedded value.

While LIC valuations appear to be cheap as compared to listed private players, investors need to keep in mind that LIC has a lower VBN margin of 9.9% in FY2021 as compared to private players who have VNB margins of 22-27% due to higher share of participation & group product.

Despite lower margins and inferior business mix, we believe that the IPO is being priced reasonably and offers value to investors with a long-term view.

Views by: Yash Gupta- Equity Research Analyst, Angel One Ltd

 

3:02 PM

Airtel buys 7% in cloud networking startup Cnergee Tech for undisclosed sum

Airtel has bought the stake at mutually agreed pre-money enterprise valuation but did not disclose the valuation due to reasons of confidentiality. READ MORE HERE

 

2:55 PM

IPO season: Campus Activewear subscribed 2.41x so far on day 2; Rainbow Children 23%

In October, Sebi issued a discussion paper highlighting the extremely narrow band companies were fixing for their IPOs

2:44 PM

European markets trade flat amid fears over gas supplies

source: finance.yahoo.com

2:36 PM

Reduce VAT on fuel to control prices in national interest: PM to states

Coming down hard on Opposition-ruled states, Prime Minister Narendra Modi on Wednesday said some states did not reduce VAT on petrol and diesel despite the excise duty cut by the Centre last November. Read here

2:26 PM

Ruchi Soya extends rally in a weak market; zooms 72% against FPO price

Shares of Ruchi Soya Industries continued at their northward movement, surging 7 per cent to Rs 1,115 on the BSE in Wednesday's trade, in otherwise a weak market on the back of heavy volumes. Read more

2:16 PM

US benchmark futures extend gains; Dow up 300 pts

source: finance.yahoo.com

2:07 PM

Bajaj Finance Q4 result: Shares fall 6% on cost concerns, rich valuation

Despite a strong March quarter (Q4FY22) performance, shares of Bajaj Finance dropped 6.3 per cent to Rs 6,780 apiece on the BSE in Wednesday’s intra-day trade as analysts remained mixed on the company’s future prospects. Read here

Illustration: Binay Sinha

1:55 PM

LIC IPO Presser: Seeing strong anchor demand for the issue including from FIIs, says DIPAM secy

1:53 PM

Paytm Money on LIC IPO: The insurer's public offer likely to bring millions of new investors

With the LIC IPO coming up, we believe that May will be a record month for demat account openings in recent times.

It is a milestone event for Indian Capital markets and is expected to bring millions of new investors.

Views by Varun Sridhar, CEO - Paytm Money

 

1:43 PM

Axis Securities CEO: LIC IPO seeing fair interest from retail investors; recommend "subscribe"

There is a fair degree of interest in the LIC IPO from retail investors. We opened around 45,000 accounts for the IPO alone last month.

Of these, 40% of customers are new to the market. While near-term market volatility is likely to weigh on the stock performance, we remain positive from the long-term perspective.

Given the under penetration of insurance and improving financialization of savings, we expect LIC to maintain its market leadership position backed by robust business traction.

Additionally, a strong rebound in terms of NBP/APE growth enabling market share gains in Q4FY22 hints at strong investor interest before the IPO. 

Thus, we believe investors should subscribe to the IPO for the long term, as we are confident that the structural story for the life insurance industry remains intact as uncertainties during the pandemic have highlighted the benefits of life insurance.”

Views by B Gopkumar, MD & CEO, Axis Securities

1:38 PM

LIC IPO Presser: Has been granted exception from SEBI on compulsory 5% float, says DIPAM Secy

1:37 PM

BSE 500:: Stocks recovering smartly from the lows of the day

Adani Power has zoomed over 9 per cent from the low of the day. Vakrangee, Tata Metaliks, Hero MotoCorp and Shipping Corporation of India were the other notable gainers.

1:26 PM

LIC IPO:: Further dilution unlikely in the near term

Speaking to media persons, LIC chairperson MR Kumar said that LIC is unlikely to divest more in the near future. Adding that, over a period of time, we should be able to reach a private industry margin of 20-25 per cent. 

 

1:22 PM

LIC IPO presser: The insurer brings good value proposition for stakeholders, says mgmt

<< The IPO brings good value proposition for all stakeholders

 

<< Our long term products, sticky customer base, brand name enhances value for the stakeholders