Reliance Industries is expected to see massive inflows from exchange-traded funds (ETFs) in December. This is because its weightage in popular indices such as Nifty, Sensex, and MSCI India will increase after its partly-paid shares get converted into fully-paid shares next month. The second and final call of Rs 628.5 for its rights issue is due in November. After that, the partly-paid shares will cease to exist. According to Sriram Velayudhan, vice-president – alternative research, IIFL-Institutional Equities says the inflows into the stock on account of increase in weightage are estimated at $425 million (about Rs 3,200 crore). “Looking at the current market momentum, we believe one can look to gradually start building positions in RIL in the run-up to this potential re-balancing event,” he said. Shares of RIL soared nearly 4 per cent on Friday.
Price hikes buoy paint cos’ prospects
Paint stocks are expected to do well given the increased demand from the real estate sector. Analysts say while the unorganised players too are witnessing demand, the branded majors will be able to corner higher share in revenues. Moreover, all the paint companies have raised prices in two or three tranches during the second quarter of FY22. “There has been acceptance of the price hikes in the market and materially no impact on the volumes. Though there is a slight impact on demand in September 2021, it is partially due to delayed Diwali,” said an analyst, who remains positive on Akzo Nobel, Kansai Nerolac, and Indigo Paints.
Anchor selling weighs on Ami Organics
Shares of Ami Organics dropped more than 4 per cent on Friday as the 30-day lock-in period meant for anchor investors ended. Market observers said several institutional investors could have booked profits as the stock has more than doubled over its issue price of Rs 610. It last closed at Rs 1,250. Abhilash Pagaria, assistant vice-president, Edelweiss Alternative Research, said anchor investors had subscribed to 2.8 million shares — 7.7 per cent equity — of the company, engaged in the manufacturing of specialty chemicals. Its IPO in September had garnered 65 times subscription. Some believe the selling pressure due to anchor selling can be used as a buying opportunity.
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