Sensex, Nifty opens flat; D-Mart shares list at 102% premium

Domestic markets on Tuesday opened flat on the back of mixed global cues. At 0920 hours BSE Sensex was trading at 29,545.03, up 26.29 points or 0.09%, while NSE Nifty was trading at 9,136.30, up 9.45 points or 0.10%.

On 30-share benchmark, among top gainers were ITC (1.08%), HDFC (0.96%), Larsen & Toubro (0.83%), ONGC (0.71%) and Coal India (0.69%). Among top losers were Dr Reddy's Lab (-3.47%), Axis Bank (-1.89%), Sun Pharma (-1.31%), Reliance Industries (-0.73%) and GAIL (-0.59%). 

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Avenue Supermart Limited (ASL) in its market debut on Tuesday, got listed at 102% premium from the IPO issue price.On BSE, the shares of ASL got listed at Rs 604.40 per share, which was above Rs 305.40 or 102.14% from its issue price of Rs 299.

At 1011 hours the shares of Avenue Supermart were trading at Rs 583.05 per piece, down 3.53% or Rs 21.35 from the issue price. 

Avenue Supermarts, parent company of retail store D-Mart, had recently closed its Rs 1,870-crore initial public offering (IPO).

The IPO was the biggest since PNB Housing Finance’s Rs3,000 crore offer in October last year. It was oversubscribed by 105 times during its IPO. The price band for the public issue of Avenue Supermarts was fixed at Rs 295-299.

Moreover, the investors are likely to watch "parliament drama" related to GST. On Monday, the Union Cabinet had  approved four Goods and Services Tax (GST)-related bills, which have already been approved by the GST Council after detailed discussions.

According to an IANS report, Minister of State for Finance Santosh Kumar Gangwar, has said that the draft bills will now be tabled in Parliament`s ongoing budget session. Also, within 10 days, the bills will be placed in the Lok Sabha session. 

Stocks in focus:

Idea Cellular: Idea Cellular on Monday said that its board of directors have approved the merger of Vodafone India and its wholly-owned subsidiary Vodafone Mobile Services with itself.

The company said that it will issue an aggregate number of equity shares of the new company to Vodafone India Ltd equal to 47% of the post issue paid-up capital. Vodafone will hold 45.1% of the combined company after transferring a stake of 4.9% to the promoters of Idea for Rs 3874 crore in cash. 

State Bank of India: The government on Monday gave its nod to merge the Bharatiya Mahila Bank (BMB) with the State Bank of India (SBI)  to provide greater banking services outreach to women.

Reliance Industries: Oil Minister Dharmendra Pradhan on Monday said that Reliance Industries' flagging KG basin D6 block has seen natural gas output slip further, leading the government to disallow USD 2.756 billion in cost, as reported by PTI. 

RIL and its partners BP plc of UK and Canada's Niko Resources produced less than 16 per cent of the 31,793.28 million standard cubic meters (mmscm) target from KG-DWN-98/3 or KG-D6 block in 2013-14.

On global front, Asian shares clung to their 15-month highs while the dollar and U.S. bond yields were on the back foot on the prospects of a less-hawkish Federal Reserve policy trajectory, as reported Reuters. 

In early trade, MSCI`s broadest index of Asia-Pacific shares outside Japan rose 0.1%, staying near a 15-month high it touched on Monday, with South Korean shares  hitting two-year highs.

Japan`s Nikkei dropped 0.8%, weighed by financial stocks, which were hurt by lower U.S. yields and exporter stocks, which fell on the yen`s gains against the dollar, the report added.