NSE to Introduce 8 Stocks in F&O from October 2021

8 Stocks in F&O from October 2021
31/08/2021

The National Stock Exchange (NSE) vide its circular dated 31st August, has announced the inclusion of 8 more stocks in the list of stocks eligible for F&O trading. The inclusion of these 8 stocks will, of course, be subject to the fulfilment of eligibility criteria of Quarter Sigma Computation Cycle of September 2021.

The list of 8 stocks to be included in F&O effective from 01-Oct:
 

Serial No.

Company Name

NSE Code

Nature of Business

1

Abbott India Limited

ABBOTINDIA

MNC Pharmaceutical and healthcare vertical

2

Crompton Greaves Cons

CROMPTON

Electrical goods for household use

3

Dalmia Bharat Limited

DALBHARAT

Cement Manufacturer, 4th largest capacity

4

Delta Corp Limited

DELTACORP

Gaming, Casino and the Hospitality business

5

India Cements Limited

INDIACEM

Largest South-based Cement Manufacturer

6

JK Cements Limited

JKCEMENT

Cement maker and part of Singhania Group

7

Oberoi Realty Limited

OBEROIRLTY

Real estate developer based out of Mumbai

8

Persistent Systems Ltd

PERSISTENT

It enabled software development company

The exchange will communicate the specific details of the F&O contracts like market lot, scheme of strike prices and quantity freeze limits on 30-Sep, a day before the start of F&O contracts on these stocks.

The decision to add or remove stocks from the F&O is based on prescribed eligibility criteria and there is a stock selection committee that deliberates and evaluates whether a stock fits into all these criteria before admitting a stock for inclusion in the F&O list.

Normally, inclusion in F&O adds to the liquidity of the stock since a fairly large chunk of volumes is created by cash-futures arbitrage. Stocks included in F&O are also not subjected to stock-level circuit filters.

Currently, there are 3 indices (Nifty, Bank Nifty and Nifty Financial Services) and 172 stocks on which F&O trading is permitted. With the addition of these 8 stocks, the eligible F&O stock list will go up to 180.

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Veeda Clinical Research to file for Rs.700 crore IPO

Veeda Clinical Research IPO
31/08/2021

Veeda Clinical Research plans to tap the primary market to raise up to Rs.700 crore through an initial public offer. The IPO is likely to be a combination of fresh issues and an offer for sale, where some of the early investors plan to take a partial exit via the OFS route. Veeda Clinical Research is yet to file the draft red herring prospectus (DRHP) with SEBI, but that is expected to happen in the near few weeks.

Veeda specializes in the focused segment of Bio Availability / Bio Equivalence (BA/BE) studies. These studies are extremely important for drugs going off-patent and generic manufacturers rely on these BA/BE studies to shortlist the specific generics to target. With a slew of drugs going off patent in the next 5-6 years, Veeda expects their order book to be robust in the next few years. 

Veeda is backed by CX Partners and in June this year there were a number of new backers who infused $16 million into the company. The new backers include Sabre Partners, Pranab Mody of JB Chemicals, Havells India family office, Nikhil Vora of Sixth Sense Ventures and Arjun Bhartia of Jubilant Group.

In addition to BA/BE tests, Veeda also does clinical trials of biosimilars and novel drugs. The elaborate testing of the COVID-19 vaccine in India has showcased the skill-sets of Indian companies in this testing space. Veeda expects that global companies would increasingly look at India for outsourcing such testing activities.

Veeda has conducted more than 3,500 trials and developed more than 1,000 bio-analytical methods spread across generics, new chemical entities and biosimilars. It has also been able to complete over 80 global inspections. The fresh funds will be used to bankroll its expansion plans, especially after the successful Phase-3 trials conducted in India for the COVID-19 vaccines.  

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Sectoral Gainers and Losers in August 2021

Sectoral Gainers and Losers
by 5paisa Research Team 01/09/2021

The month of August was led by the large caps as the Nifty rallied from 16,000 to 17,000 in a record time of less than a month. For the month of August, Nifty gave returns of +8.69% while the Nifty Mid-Cap index fell by -2.03% and the Nifty Small Cap fell by -2.46%. This is a reversal of the trend of the last 2 months, when mid and small caps had outperformed.

 

Sectoral picture of gainers and losers August 2021

Sectoral Gainers

Percentage Gain

Software and IT

13.42%

Oil & Gas

9.93%

FMCG

9.65%

Private Banks

4.79%

Consumer Durables

4.18%

 

 

Sectoral Losers

Percentage Loss

PSU Banks

-4.35%

Real Estate

-2.97%

Metals

-0.97%

Pharmaceuticals

-0.56%

Automobiles

-0.14%

 

Here are some key takeaways from the sectoral performance in Aug-21.

 

• There was a shift to defensives at higher levels of the Nifty. That explains the strong returns in FMCG, IT and even in consumer durables.

• The month belonged to heavyweights like RIL, TCS, HDFC Bank, Infosys, ICICI Bank and Hindustan Unilever. That is evident in the sectoral gainers mix also.

• The sharp rally in software at 13.42% was led by solid first quarter results, robust guidance as well as dollar strength boosting the value of IT companies.

• On the losing side, PSU banks diverged from private banks as concerns over asset quality heightened during the month, especially with the stress imposed by COVID 2.0.

• Real Estate and Metals were virtually taking a breather after a frenetic rally over the last 2 month. Both sectors were among the top performers in June and July.

• In the case of pharmaceuticals and automobiles, the subdued performance was more due to concerns over a spike in cost of inputs due to supply chain constraints.

 

August 2021 has been a story of two trends. The defensives attracted a lot of interest at higher levels and it was a set of heavyweight stocks that propelled the index higher.

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Ami Organics IPO gets subscribed 1.90 times at end of Day-1

Ami Organics IPO Subscription Status
IPO
by 5paisa Research Team 01/09/2021

The Rs.570 crore IPO of Ami Organics, consisting of Rs.200 crore fresh issue and Rs.370 crore OFS, got fully subscribed on Day-1 itself. As per the combined bid details put out by the BSE, Ami Organics IPO was subscribed 1.90X overall, with bulk of the demand coming from the retail segment followed by domestic institutions. The issue closes for subscription on Friday, 03 September.

As of close of 01 September, out of the 65.42 lakh shares on offer, Ami Organics saw bids for 124.03 lakh shares. This implies an overall subscription of 1.90X. The granular break-up of subscriptions were tilted in favour of retail investors.

Ami Organics IPO Subscription Day-1

 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

1.39 Times

Non Institutional Investors (NII)

0.40 Times

Retail Individuals

2.82 Times

Employees

N.A.

Overall

1.90 times

 

QIB Portion

The QIB portion saw 1.39X subscription with demand for 25.74 lakh shares against 18.54 lakh shares available; net of anchor placement. On 31 August, Ami Organics did anchor placement of Rs.171 crore to QIB investors like SBI MF, Nippon MF, Malabar Fund, Kuber Fund, UTI MF, IIFL Asset Management, Elara India, Birla Sun Life, Kotak Life etc.

 

HNI Portion

The HNI portion got subscribed 0.40X (getting applications for 5.69 lakh shares against the quota of 14.06 lakh shares). Funded applications and corporate applications, come in on last day, so we have to wait for that to get a clear picture.

 

Retail Individuals

The retail portion got subscribed 2.82X times at the end of Day-1, showing strong retail appetite. Among retail investors; out of the 32.82 lakh shares on offer, valid bids were received for 92.60 lakh shares, of which bids for 70.33 lakh shares were at the cut-off price. The IPO is priced in the band of (Rs.603-Rs.610) and has allocated a quota of 35% for retail and 50% for QIBs.

 

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Applications for Ami Organics IPO will start on Day 2 i.e. - September 02 at 10.00 am. and will be open till 5 p.m.

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Read more:

Ami Organics - IPO Note

7 Interesting Things to Know Before Investing in Ami Organics IPO

How to increase the chances of IPO allotment

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Vijaya Diagnostics IPO gets subscribed 0.30 times at end of Day-1

Vijaya Diagnostics IPO Subscription Status
IPO
by 5paisa Research Team 01/09/2021

The Rs.1,895 crore IPO of Vijaya Diagnostics consists entirely of an offer for sale. It got a tepid response at the end of Day-1. As per the combined bid details put out by the BSE, Vijaya Diagnostics IPO was subscribed 0.30X overall, with retail demand showing some signs of traction. The issue closes for subscription on Friday, 03 September.

As of close of 01 September, out of the 250.27 lakh shares on offer, Vijaya Diagnostics saw bids for 74.80 lakh shares. This implies an overall subscription of 0.30X. The granular break-up of subscriptions is as under.

 

Vijaya Diagnostics IPO Subscription Day-1

 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

0.23 Times

Non Institutional Investors (NII)

0.01 Times

Retail Individuals

0.46 Times

Employees

0.24 Times

Overall

0.30 times

 

QIB Portion

The QIB portion saw 0.23X subscription with demand for 16.40 lakh shares against 71.08 lakh shares available; net of anchor placement. On 31 August, Vijaya Diagnostics did anchor placement of Rs.566 crore to QIB investors like Fidelity, Aberdeen, Abu Dhabi Investment Authority, Government Pension Fund, ICICI Pru MF, Nippon MF, SBI MF and Kotak Life.

 

HNI Portion

The HNI portion got subscribed just 0.01X (getting applications for 0.66 lakh shares against the quota of 53.31 lakh shares). Funded applications and corporate applications, come in on last day, so we have to wait for that to get a clear picture.

 

Retail Individuals

The retail portion got subscribed 0.46X times at the end of Day-1, showing relatively better retail appetite. Among retail investors; out of the 124.38 lakh shares on offer, valid bids were received for 57.37 lakh shares, of which bids for 45.48 lakh shares were at the cut-off price. 

 

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Applications for Vijaya Diagnostics IPO will start on Day 2 i.e. - September 02 at 10.00 am. and will be open till 5 p.m.

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Read more:

Vijaya Diagnostics - IPO Note

7 Interesting Facts to Know About Vijaya Diagnostics IPO

How to increase the chances of IPO allotment

Next Article

Vedanta Declares Rs 18.50 Interim Dividend

Vedanta Declares Rs 18.50 Interim Dividend
01/09/2021

Vedanta Ltd, part of the Anil Agarwal metals and mining conglomerate, has declared an interim dividend of Rs.18.50 per share. This entails a total dividend pay-out of Rs.6,877 crore. This is the first dividend payout for the current fiscal and the record date for the dividend payout has been set as 09-September 2021.

That essentially means that shareholders whose names appear in the register of shareholders as of the close of 09-Sep will be eligible for the dividend. Considering the T+2 rolling settlement in the market, the last cum-dividend date, when investors can buy Vedanta for the dividend, will be 07-Sep. From 08-Sep, the stock will trade ex-dividend.

Vedanta had reported record profits of Rs.5,282 crore in the Jun-21 quarter spurred by robust demand for minerals and ores as well as a sharp spurt in prices on the London Metals Exchange (LME). Commodity companies typically operate in cycles and the last 1 year has seen a positive cycle for most commodity companies in terms of demand and pricing.

Vedanta Resources, the parent of Vedanta Ltd, has widespread mineral interests spread across India, South Africa, Namibia and Australia and is one of the largest minerals and mining companies in the world. Globally, Vedanta Resources competes with international mining giants like Rio Tinto and Broken Hill Proprietary.

There is an interesting point to note in this dividend declaration. Hindustan Zinc, in which Vedanta Ltd holds 64.9%, had fixed 26-August as the record date for dividend payment. However, on 17-Aug, Hindustan Zinc decided to defer the dividend payment decision. 

As per the dividend distribution policy of Vedanta, it is supposed to pass on dividends paid by Hindustan Zinc to its shareholders. However, in May-2020, the Rs.4,500 crore dividend paid out by Hindustan Zinc to Vedanta was not passed on to the shareholders.

 

Also Read: Do You Own High Dividend Paying Stocks?

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