Street signs: Wipro's place in Sensex at risk, paradigm shift for brokers

Wipro’s place in Sensex at risk
 

IT firm Wipro’s place in the 30-share Sensex is at risk unless the stock sees a sharp up-move between now and April-end. The review period for the S&P BSE indices June rebalance ends on April 30. “Just over a third of the way through the review period of the June rebalance, we see one potential index change with Wipro in the deletion zone. Adani Enterprises, Coal India, and Hindalco Industries are potential inclusions to the index in that order,” said analyst Brian Freitas of Periscope Analytics who publishes on Smartkarma. The deletion could trigger Rs 1,327 crore worth of passive selling in Wipro, while Adani Enterprises could see buying to the tune of Rs 1,985 crore if it makes it to the index.

 

Paradigm shift for brokers

Over 35 per cent of stock brokers in India use algorithmic trading (algo trading) to provide smoother services to their clients, a survey by the broker body Association of National Exchanges Members of India (ANMI) reveals. Already a majority of the volumes on the exchanges are driven through algos. Further, the report notes that a decline in brokerage income and emergence of new players has pushed traditional full-service brokers to diversify business into other areas like helping users take loans, invest in mutual funds and fixed deposits, and purchase insurance. Further, the ANMI Stocktech Survey shows that a majority of the brokers will see a 20 per cent increase in technology investments in 2023-24.

 

Medi Assist GMP in low double digits

The grey market premium (GMP) for Medi Assist Healthcare, an insurance third-party administrator (TPA), hovered between 12 per cent and 20 per cent last week. The GMP was last seen settling at around 13 per cent, said market players. Medi Assist’s Rs 1,172 crore IPO—entirely an offer for sale—opens for subscription on Monday and closes on Wednesday. At the top-end of the price band of Rs 397-418 per share, the company is valued at Rs 2,878 crore. In FY23, Medi Assist clocked net profit of Rs 74 crore on revenues of Rs 505 crore.