Listen In: Sound fundamentals make Supriya Lifescience IPO attractive | The Economic Times Podcast

– Fed doubles taper, signals three rate hikes in 2022
– PSU bank employees to go on two-day strike from today
– Cabinet clears Rs 76,000-crore incentive scheme for semiconductors

Now lemme give you a quick glance on the state of the markets.

Asian stocks followed Wall Street higher on Thursday after the US Federal Reserve said it would end bond-buying stimulus in March to set up three interest rate increases next year to tackle heated inflation. Bond yields rose while the dollar stabilised after slumping overnight as safe havens fell out of favour.

Elsewhere, the yield on 10-year Treasuries advanced one basis point to 1.47%. The dollar paused for breath on Thursday, having given up a brief rally made after the US Federal Reserve said it would end pandemic-era bond purchases in March, as investors awaited imminent decisions from other major central banks.

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That said, here’s what is making news.

At a market cap of around ₹2,200 crore, Supriya Lifescience would be valued at over five times its estimated FY22 revenues. These are fair valuations commanded by the promoter-owned company with sound fundamentals and strong financials. Investors interested in the small pharma segment can consider this IPO.

Brokerage CLSA said Zee Entertainment Enterprises’ (ZEE) potential merger with Sony could be a rerating catalyst. Reiterating a buy rating with a target price of ₹415, CLSA said that if the deal is sealed, ZEE’s valuation is likely to return to historical highs of 30 times. CLSA said that Sony would have 51% ownership after the merger and would be able to appoint majority of directors.

Amid hardening inflation, the Reserve Bank of India (RBI) has sounded out some of the financial institutions to sense the possible demand for ‘inflation indexed bonds’. An inflation-linked government security, which serves as a hedge when real returns from fixed deposits and bonds have declined sharply, has the potential to draw large institutional investors like life insurance companies as well as retail savers.

LASTLY,

The positive reaction of the US equity market to Powell’s press conference could catch bears, who have built up short positions on the index ahead of the FOMC’s decision fearing for the worst, on the wrong foot. Traders were active buyers in Nifty50’s out-of-money put options on Wednesday, while foreign investors have been accumulating short positions on the index for three consecutive sessions.

NOW Before I go, here is a look at some of the stocks buzzing this morning…

Vodafone Idea is targeting a four-fold jump in annual capital expenditure to $2 billion (about ₹15,000 crore), the telco’s top management has said, as it looks to take on stronger rivals.

Adani Transmission has inked a share purchase pact with Adani Ports and Special Economic Zone to acquire MPSEZ Utilities (MUL) for Rs 116.27 crore, as per a regulatory filing.

The Competition Commission of India (CCI) on Wednesday approved the acquisition of shareholding in Sterling and Wilson Renewable Energy Ltd by Reliance New Energy Solar Ltd. According to a combination notice filed with the regulator, Reliance New Energy is seeking to acquire 40 per cent of the total voting equity share capital.

Drug major Cipla on Wednesday said it has inked a pact to acquire 33 per cent stake in renewable energy firm Clean Max Auriga Power LLP for up to Rs 6 crore.

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Do also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.

That’s it for now. Stay with us for all the market news through the day. Happy investing!