How sectoral rotation can help you make money in an expensive market
Given the high valuations, sector rotation is an effective strategy. This involves reallocating investments from overvalued sectors to those with more attractive valuations. For example, while IT and Financial Services have seen significant run-ups, sectors like Pharmaceuticals, Infrastructure, and Energy still offer attractive entry points given their growth potential and alignment with India’s economic development.
Alibaba affiliate may sell 1.54% stake in Zomato
Antfin Singapore, part of Alibaba Group, arranged to sell a 1.54% stake in Zomato on Tuesday through block deals, anticipating raising around ₹3,400 crore. The shares were priced at ₹251.68 each, a 4% discount to the previous closing price. Antfin previously held a 4.24% stake and had sold a 2% stake earlier this year.
Equity mutual fund folio additions hit record 5.4 million in July
AMFI reported that equity mutual fund folios reached 5.4 million in July, boosted by new sectoral fund launches. Inflows of nearly Rs 10,000 crore, mostly from new fund offers, drove this increase. The total folio count reached 138 million, with sectoral funds representing 18% of the total.
Stocks in news: IndusInd Bank, Zomato, Saraswati Saree Depot, HCL Tech, Poly Medicure
The benchmark indices saw a flat closing on Monday with investors waiting for more triggers. Key focus areas were IndusInd Bank’s RBI nod for a mutual fund business, Saraswati Saree Depot’s 30% premium debut, and movements in Zomato, Poly Medicure, Motilal Oswal, Hi-Tech Pipes, Sapphire Foods, and HCL Tech shares.
Moderately valued’ metal stocks shine on bourses
On Monday, metal stocks rose, driven by moderate valuations and an anti-dumping investigation on Vietnamese hot-rolled coil imports. The Nifty Metal Index gained 1.87%, and companies like National Aluminium and Hindalco saw significant increases. Analysts, however, remain cautious due to challenges from Chinese imports despite the recent valuation corrections.
TruAlt Bioenergy files papers with Sebi
Biofuel producer TruAlt Bioenergy, based in Bengaluru, filed its draft prospectus with Sebi to raise funds through an IPO. The issue includes ₹750 crore fresh issue and 36 lakh shares for sale by promoters. Proceeds will be used to establish multi-feedstock operations, including grains, and support working capital and corporate expenses.
Vedanta garners Rs 3,100 crore from Hindustan Zinc OFS
Vedanta sold 63.6 million shares of Hindustan Zinc, raising ₹3,100 crore, yet fell short of the planned ₹6,500 crore. Despite high investor interest, share prices of Hindustan Zinc and parent company Vedanta have seen significant declines. Removal of green shoe options influenced the final outcome of proceeds.