Insurance players firm up on better outlook
- In an otherwise weak market, shares of insurance players were able to stay in positive territory. Shares of HDFC Life hit an all-time high intraday. In its recent investor interaction, the company management shared optimism about premium growth and margin sustenance near the previous year’s levels. A high single-digit growth in FY21 and near 15% growth in FY22 could be on the cards. The stock pared gains with the fall in the broader market and closed with a gain of 0.1%.
- The insurance business is picking up because the pandemic has increased awareness about insurance, as cited by multiple insurers.
- Investor interest was seen in the shares of other players too, as SBI Life (+1.3%) and ICICI Lombard (+0.8%) were up today.
ONGC strengthens on crude oil rally
- Crude oil prices have risen over 25% this month and are at a seven-month high on hopes of a smooth presidential transition in the US, the rapid progress on the vaccine front and the improving demand scenario.
- Shares of state-owned ONGC are up 5.9% today, supported by the rise in crude oil prices. ONGC is India’s largest crude oil company and contributes nearly 75% to the domestic oil production. Oil India Limited, which is a relatively smaller oil explorer, was also up 2.3% today.
- Further, exploration service providers also rose as industry dynamics are improving. Alphageo (+19.1%), Aban Offshore (+9.9%) and Jindal Drilling (+6.1%) saw stellar gains.
Seven IPOs ready to hit the Street next month
- As per reports, seven companies are planning to come out with IPOs in December. Companies like Kalyan Jewellers, Suryoday SFB, ESAF SFB, Nazara Technologies, RailTel, Burger King and Antony Waste Management are expected to go public and raise funds in the range ₹500 crore to ₹1,750 crore each.
- So far in 2020, 12 companies have hit the D-Street and delivered returns ranging from -1% (UTI AMC) to 175% (Route Mobile). Gland Pharma, which recently listed on the exchanges, has delivered close to 45% in less than a week.
- One could expect favourable investor interest in the upcoming IPOs, considering the rates of oversubscription seen in the recent IPOs, markets hitting lifetime-highs and handsome returns delivered by most IPOs in 2020. This, in turn, could trigger some money to flow from the secondary market (stocks) to the primary markets (IPO).