Both, the BSE Mid Cap index and the BSE Small Cap index have opened higher by 0.7%.
Sectoral indices are trading mixed with stocks in the power sector and realty sector witnessing buying interest.
Metal and telecom stocks, on the other hand, are trading in red.
Shares of PI Industries and HUL hit their 52-week highs today.
The rupee is trading at 73.01 against the US$.
Gold prices are trading up by 0.1% at ₹47,131 per 10 grams.
Meanwhile, silver prices are trading up by 0.1% at ₹62,916 per kg.
In latest developments from the IPO space, according to depositories data, FPIs’ net investment in Indian equities between 1 January and 30 August stood at ₹494 bn.
Of the total inflow, over 74% or ₹365.8 bn came through the primary market route as against an investment of ₹128.3 bn via stock exchanges.
Investment through the primary market exceeded the secondary market in five out of eight months including in August.
This shows that along with retail investors, FPIs have also been caught with the IPO frenzy in India.
FPI inflows through primary market includes investments in initial public offering (IPO), qualified institutional buying (QIB) and rights issue.
The year 2021 has already seen 38 mainboard IPOs and with companies raising nearly ₹720 bn including hyped IPOs like Zomato the IPO of PowerGrid InvIT.
With many more IPOs to hit the market including the much-anticipated public issue of Life Insurance Corporation (LIC) and Paytm, FPI interest is likely to be anchored around the primary market.
In other news from the IPO space, specilalty chemicals company Ami Organics has raised ₹1.7 bn from anchor investors ahead of its initial share-sale that opened for subscription today.
SBI Life Insurance Company, Kotak Mahindra Life Insurance Company, Aditya Birla Sun Life Insurance Company, Kuber India Fund, UTI Mutual Fund, Sundaram MF and SBI Mutual Fund are among the anchor investors.
The IPO comprises fresh issue of equity shares worth ₹2 bn and an offer for sale (OFS) of up to 6,059,600 equity shares by existing shareholders.
At the upper price band of ₹610, the IPO is expected to fetch ₹5.7 bn.
It must be noted that this is Ami Organics’ second attempt to go public. Earlier, the company had filed preliminary papers in 2018 but did not float the IPO.
How the IPO sails through this time remains to be seen.
Moving on to stock specific news…
Bharat Electronics is among the top buzzing stocks today.
The Indian Navy on Tuesday sealed a contract with defence PSU Bharat Electronics for the supply of the first indigenously developed Naval Anti Drone System (NADS), the defence ministry said.
The NADS, developed by the Defence Research and Development Organisation (DRDO) and manufactured by Bharat Electronics, is the first indigenously developed anti-drone system to be inducted into the Indian armed forces.
The NADS can instantly detect micro drones and uses a laser-based "kill mechanism" to terminate the targets.
The NADS was first deployed to provide security cover for the Republic Day Parade this year and later during the prime minister's Independence Day address to the nation from the ramparts of the Red Fort.
Note that serious concerns over threats from enemy drones first emerged in June when two drones were used by suspected Pakistan-based terrorists to attack the Indian Air Force (IAF) base in Jammu.
As per the ministry, both the static and mobile versions of NADS will be supplied to the Indian Navy within a short time from the signing of the contract.
Bharat Electronics share price has opened the day up by 0.5%.
Speaking of the defence sector, have a look at the chart below which shows the top 5 military spending countries in the world as of 2019:
According to a SIPRI (Stockholm International Peace Research Institute) report, India was the third largest military spending country in the world in 2019.
Here's what we wrote about it in one of the editions of Profit Hunter:
If you look at the chart closely, you will realise it is likely to remain among the top spenders in the coming years.
It's because of the second largest spender shown in the chart, China.
With rising tensions between the two countries, the incentive is strong for India to keep up with China.
It all makes sense for the government to focus on this sector in a big way in the near future. The government's 'Atmanirbhar' push will get a massive boost through local defence manufacturing. This will create profitable opportunities in defence stocks for astute investors.
Co-head of Research at Equitymaster, Tanushree Banerjee keeps a close watch on stocks in the defence space. As per Tanushree, defence will be a big wealth-creating opportunity.
Back in July 2021, she recorded a video about India's best drone stocks. You can watch the video here.