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.

Next Article

Ami Organics IPO Subscription Day-2

Ami Organics IPO Subscription Day-2
IPO
01/09/2021

The Rs.570 crore IPO of Ami Organics, consisting of Rs.200 crore fresh issue and Rs.370 crore OFS, had been fully subscribed on Day-1 itself. As per the combined bid details put out by the BSE, Ami Organics IPO was subscribed 3.90X overall at the end of Day-2, the bulk of the demand coming from the retail segment, but QIB and HNI book also got filled up. The issue closes for subscription on Friday, 03 September.

As of close of 02 September, out of the 65.42 lakh shares on offer, Ami Organics saw bids for 255.07 lakh shares. This implies an overall subscription of 3.90X. The granular break-up of subscriptions was tilted in favour of retail investors.

Ami Organics IPO Subscription Day-2
 

Category Subscription Status
Qualified Institutional (QIB) 1.43 Times
Non-Institutional (NII) 1.51 Times
Retail Individual 6.32 Times
Total 3.90 Times

 

QIB Portion

The QIB portion saw 1.43X subscription with demand for 26.43 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 1.51X (getting applications for 21.18 lakh shares against the quota of 14.06 lakh shares). Funded applications and corporate applications, come in on last day, so a clearer picture will emerge on Friday.

Retail Individuals

The retail portion got subscribed 6.32X at the end of Day-2, showing strong retail appetite. Among retail investors; out of the 32.82 lakh shares on offer, valid bids were received for 207.47 lakh shares, of which bids for 157.96 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.

 

Also Read: 

Upcoming IPOs in 2021

IPOs in September

7 Interesting Things to Know Before Investing in Ami Organics IPO

Next Article

Sansera Engineering IPO Allotment - How to Check the Allotment Status?

Sansera Engineering IPO Allotment
IPO
by 5paisa Research Team 01/09/2021

The Rs.1,282.98 crore IPO of Sansera Engineering, consisting entirely of an offer for sale (OFS), was subscribed 11.47X overall at the close of bidding on 16 September. The basis of allotment will be finalized on Tuesday, 21 September. If you have applied for the Sansera Engineering IPO, you can check your allotment status online.
 
You can either check your allotment status on the BSE website or the IPO registrar, Link Intime. Here are the steps.

Checking the allotment status of Sansera Engineering on BSE website

Visit the BSE link for the IPO allotment by clicking on the link below :

https://www.bseindia.com/investors/appli_check.aspx

Once you reach the page, here are the steps to follow.

1.  Under Issue Type – Select Equity Option
2.  Under Issue Name – Select Sansera Engineering from the drop down box
3.  Enter the Application Number exactly as in the acknowledge slip
4.  Enter the PAN (10-digit alphanumeric) number
5.  Once this is done, you need to click on the Captcha to verity that you are not a robot
6.  Finally click on the Search Button

The allotment status will be displayed on the screen in front of you informing about the number of shares of Sansera Engineering allotted to you.

Checking the allotment status of Sansera Engineering on Link Intime (Registrar to IPO)

Visit the Link Intime registrar website for IPO status by clicking on the link below:

https://linkintime.co.in/MIPO/Ipoallotment.html

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Sansera Engineering from the drop down box.

There are 3 options:

1.  You can either access the allotment status based on PAN, Application Number or DPID-Client ID combination.

2.  Select the appropriate option you want to use and enter the details (PAN / Application Number / DPID-Client ID)

3.  Finally, click on the Search button.

The IPO status with number of shares of Sansera Engineering allotted will be displayed on the screen.


Frequently Asked Questions - 

Q. How do I check whether Sansera Engineering IPO is allotted to me or not?

A. You can check the IPO Allotment status using two ways - mentioned above. However you will also receive an email and SMS notification if you have got the shares allotted to your account or not.


Q. What if Sansera Engineering IPO is not allotted to me?

A. If Sansera Engineering IPO is not allotted to you, then -

1) In case of no-allotment or partial allotment, the money will be refunded to investors of the application money. Once applied for the IPO, then the bank blocks the amount in the account equal to bid size and the amount gets debited from the bank account after final allotment. 

2) Based on application status, the bank will initiate a full or partial refund which generally takes one or two days to receive the refund in your account. 


Q. When is the Sansera Engineering IPO Allotment expected?

A. Sansera Engineering IPO allotment is expected on 21st September 2021.


Q. When is Sansera Engineering IPO getting listed?

A. Sansera Engineering IPO is getting listed on 24th September 2021.


Q. How many times Sansera Engineering IPO was subscribed?

A. Sansera Engineering IPO was oversubscribed (11.47 times).

     Retailer - 3.15 times

     QIB - 26.47 times

     NII -11.37 times

Q. Where can I check the IPO Allotment status of Sansera Engineering IPO?

A. You can login to Linkintime Website OR on BSE India Website to check Sansera Engineering IPO. Above are the steps mentioned for both the websites.

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?

High Dividend Yeilding Stocks

Next Article

SBI Raises Rs.4,000 Cr via Issue of AT-1 Bonds

SBI AT1 Bonds
01/09/2021

State Bank of India announced that it had raised Rs.4,000 crore through the issue of Additional Tier-1 (AT-1) Bonds. These AT-1 bonds are perpetual bonds that do not have any specified maturity. However, the issuer has the prerogative to call back the bonds after a period of 5 years, which is generally the norm. However, the interest will be paid on a periodic basis on these bonds.

One of the big advantages of AT-1 bonds is that they are treated as quasi-equity and, being perpetual in nature, they are at par with equity. Hence, any AT-1 bond raising directly boosts the Tier-1 capital of the bank. The coupon rate on the AT-1 bonds has been fixed at 7.72%, which is one of the most competitive rates in that segment.

The base issue size was Rs.1,000 crore, but SBI received bids for almost Rs.10,000 crore. Finally, SBI has decided to accept bonds worth Rs.4,000 crore at the coupon of 7.72%. AT-1 bonds had come under some sort of cloud last year after Yes Bank repudiated its AT-1 bonds but that is normally not a concern for investors when it comes to blue-chip banks like SBI.

SBI was able to get a competitive coupon rate considering its AAA rating from all the domestic credit rating agencies. However, the AT-1 Bonds are rated AA+ considering the hybrid nature of these bonds and the higher risk implicit in these instruments since they are technically of perpetual maturity.

SBI has a capital adequacy of 13.66% as of June 2021 and needs to continuously boost its capital base in tune with the expansion of its loan book. Being the dominant PSU bank in India, it is expected to be one of the big beneficiaries of the post-pandemic boost to lending. The AT-1 bonds will help SBI to boost its Tier-1 capital in that direction.

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Also Read:

1.  Different Types of Debentures and Their Use

2.  Difference Between Convertible and Non-Convertible Debentures

3.  What are Pros and Cons of Investing in NBFC NCDs

Next Article

5 Stocks to Buy Today: September 2, 2021

02/09/2021

Every morning our analysts scan through the markets universe and chose the best momentum stocks to buy today. The stocks are recommended from a wider list of momentum stocks and only the best ones make it to the top 5 list. We also update on the performance of earlier recommendation every morning to help you with your trading journey. Here is a list of five momentum stocks to buy today. The average holding period could be between 7-10 days on average.

Here Are the 5 Stocks to Buy Today

1. United Breweries Ltd. (UBL)

United Breweries Ltd. manages the manufacture and sale of and are the leaders in the Indian beer market. They own various brands such as Kingfisher, Bullet, London Pilsner, Kalyani Black Label, Ub Export and Cannon 1000.

UBL Stock Details for Today: 

- Current Market Price: 1,543

- Stop Loss: 1,490

- Target: 1,660

- Holding Period: One week buy

5paisa Recommendation: We see a steady increase in volumes, making UBL ones of the sought-after stocks to buy today. 

 

2. PNC Infratech Ltd. (PNCINFRA)

PNC Infratech Limited is one of India's premiere construction companies. The company has successfully executed various construction projects, which includes highways, runways, bridges, power transmission lines, etc. 

PNCINFRA Stock Details for Today: 

- Current Market Price: 338

- Stop Loss: 326

- Target: 364

- Holding Period: One week buy

5paisa Recommendation: With the stock coming out of consolidation, PNCINFRA seems to be a good buy for today.

 

3. Asian Paints (ASIANPAINT)

Asian Paints is India's leading paints company. With a strong consumer-focus and innovative spirit, the company has been the market leader in paints since 1967. 

ASIANPAINT Stock Details for Today: 

- Current Market Price: 3,306

- Stop Loss: 3,250

- Target: 3,440

- Holding Period: One week buy

5paisa Recommendation:  Our technical analysts strongly recommend this stock for the following reasons:

1. Asian Paints has a strong uptrend in the market

2. A renewed buying interest amongst the consumers

 

4. SBI Life Insurance (SBILIFE)

A leading life insurance company in India, SBI Life offers a diverse range of products to individuals and groups through Health, Protection, Pension and Savings solutions. 

SBILIFE Stock Details for Today: 

- Current Market Price: 1,220

- Stop Loss: 1,190

- Target: 1,290

- Holding Period: 5 days

5paisa Recommendation:  Due to a short-term breakout on chart, SBILIFE features in the top 5 stock recommendations for the day. 

 

5. Radico Khaitan Ltd. (RADICO)

Radico Khaitan Limited is one of the oldest and the largest manufacturers of Indian Made Foreign Liquor (IMFL) in India, with over 15 brands including four millionaire brands in its portfolio – 8PM Whisky, Magic Moments Vodka, Contessa XXX Rum and Old Admiral Brandy. 

RADICO Stock Details for Today: 

- Current Market Price: 881

- Stop Loss: 865

- Target: 925

- Holding Period: One week buy

5paisa Recommendation:  Sideways trend is likely to end. This makes RADICO feature in our list of stocks to buy today.