Sensex, Nifty open higher; automobile and realty stocks lead

The Hang Seng is up 0.3%, while the Shanghai Composite is trading down by 1.3%. The Nikkei is trading on a flat note.

In US stock markets, Wall Street indices ended flat on Friday as markets consolidated after the Federal Reserve outlook on rates and tapering of bond buying.

The Dow Jones Industrial Average gained 33 points, or 0.1% and the Nasdaq Composite ended on a flat note.

Back home, Indian share markets have opened on a firm note, following the trend on SGX Nifty.

The BSE Sensex is trading up by 276 points. Meanwhile, the NSE Nifty is trading higher by 75 points.

Maruti Suzuki and M&M are among the top gainers today. HCL Tech, on the other hand, is among the top losers today.

The BSE Mid Cap index has opened on a flat note. The BSE Small Cap index is trading higher by 0.6%.

Sectoral indices are trading mixed with stocks in the automobile sector and realty sector witnessing buying interest.

Healthcare stocks, on the other hand, are trading in red.

Shares of PVR and KEI Industries hit their 52-week highs today.

The rupee is trading at 73.73 against the US$.

Gold prices are trading up by 0.3% at ₹46,144 per 10 grams.

Meanwhile, silver prices are trading up by 1% at ₹60,559 per kg.

Gold edged higher today as persistent concerns over the fate of Evergrande and its broader impact bolstered the precious metal's safe-haven appeal.

Crude oil prices went above their July peaks as global output disruptions forced energy companies to pull large amounts of crude out of inventories, while a shortage of natural gas in Europe pushed costs up across the continent.

In latest developments from the IPO space, the government has shortlisted Cyril Amarchand Mangaldas for giving legal advice on the upcoming IPO of LIC.

Law firms Crawford Bayley, Cyril Amarchand Mangaldas, Link Legal and Shardul Amarchand Mangaldas & Co had made presentations before the Department of Investment and Public Asset Management (DIPAM) on 24 September.

Following the presentations, Cyril Amarchand Mangaldas was selected as legal advisor for the initial public offering (IPO).

DIPAM had first inviting bids from legal advisors on 15 July for the mega LIC IPO and the last date for bidding was 6 August.

However, there was no sufficient response, following which it issued a fresh RFP and set 16 September as last date for bidding.

The government is aiming to come out with LIC’s IPO and subsequent listing in the January-March quarter of 2022.

The government is also mulling allowing foreign investors to pick up stakes in country's largest insurer.

As per market regulator’s rules, foreign investors are permitted to buy shares in a public offer.

However, since the LIC Act has no provision for foreign investments, there is a need to align the proposed LIC IPO with norms regarding foreign investor participation.

How LIC’s IPO sails through remains to be seen as it is crucial for the government in meeting its disinvestment target of ₹1.75 lakh crore.

Moving on to news from the media sector, Zee Entertainment (ZEE) is among the top buzzing stocks today.

Invesco Developing Markets Fund, a foreign portfolio investor (FPI) in ZEE, has reiterated that the media company should hold an extraordinary general meeting (EGM) to evict certain directors.

In a letter to company’s board, Invesco said,

Decisions of material strategic import must follow and not precede actions towards establishment of a proper and independent governance structure as determined by the company’s shareholders.

In this context, and against the backdrop of our EGM requisition, your disclosure of September 22 is symptomatic of the erratic manner in which important and serious decisions have been handled at the company.

Invesco holds a 17.88% stake in ZEE together with its subsidiary OFI Global China Fund and has been an investor in the company for over 10 years.

Invesco had proposed the removal of non-independent directors and recommended six additional independent directors on the board.

Earlier, it sought removal of CEO and MD Punit Goenka and non-executive directors Ashok Kurien and Manish Chokhani, citing corporate governance issues.

The above move came after ZEE’s board approved a mega-merger with Sony Pictures Networks India, a subsidiary of Japan’s Sony Corp, to create India’s largest media and entertainment firm.

But, for the merger to go through, it would need approval from 75% of its shareholders.

How this pans out remains to be seen. Meanwhile, we will keep you updated on the latest developments from this space.

Speaking of ZEE, shares of the company have been in focus ever since the shareholder activism and merger news came out.

Over the last 30 days, Zee Entertainment share price is up 85%. Over the last one year, it has gained 67.8%.

To know more, check out the latest shareholding pattern of Zee Entertainment.

This article is syndicated from Equitymaster.com