RBI remarks on inflation may influence markets
Many more IPOs opening post-Independence Day as promoters look to cash in on the buoyancy of capital markets
RBI rate cut possible if inflation is over 6% for 2 qtrs: Icra
The domestic bourses during the August 3-9 period saw volatile and two-sided moves with markets moving in alternate directions on alternate days. Up, down, up, down is how they ended. They gained on two of the five trading sessions and lost on two more. Today, Wednesday saw markets open weak and remain weak till almost the last hour of trading and then beginning to gain and end the day in positive territory. BSE Sensex gained 213.03 points or 0.32 per cent to close at 65,995.81 points, while Nifty gained 106.00 points or 0.54 per cent to close at 19,632.55 points.
Dow Jones lost on four of the five trading sessions, gaining on just one. Dow lost 317.68 points or 0.89 per cent to close at 35,296.8 points.
There were two IPOs, which opened for subscription and also closed during the period under review. The IPO from SBFC Finance Ltd had opened for subscription on Thursday (August 3) and closed on Monday (August 7). The issue was subscribed 70.16 times overall with QIB portion subscribed 192.90 times, HNI portion subscribed 49.09 times and Retail portion subscribed 10.98 times. There were 24.29 lac applications.
The second issue was from Concorde Biotech Ltd, which had opened for subscription on Friday (August 4) and closed for subscription on Tuesday (August 8). The issue was subscribed 24.86 times overall with QIB portion subscribed 67.67 times, HNI portion 16.99 times and retail portion 3.77 times. There were 12.84 lakh applications in all.
The issue from Yatharth Hospital and Trauma Care Ltd listed on Monday (August 7). Shares were issued at Rs300 per share. The discovered price was Rs304 on BSE and the closing price Rs333.75. The gain was Rs33.75 or 11.25 per cent. The share gained some more and closed at Rs343.45, a gain of Rs43.45 or 14.48 per cent. The issue from TVS Supply Chain Solutions Ltd would open on Thursday (August 10) and close on Monday (August 14). The issue would raise Rs600 crore fresh and Rs280 crore through an offer for sale.
The week ahead would see many more IPOs opening post-Independence Day as promoters look to cash in on the buoyancy of capital markets which are hovering within 1-2 per cent of lifetime highs. More details on each of these issues as they complete their roadshows.
The period ahead August 10-16 would continue to see markets in a volatile and choppy environment with both sides’ moves being the order of the day.
The level of 19,600-19,650 on Nifty would continue to act as a pivot with markets looking bullish above 19,650 and looking weak below 19,600 pts. Strong resistance currently exists at levels of 20,000 at Nifty and very strong support is there at 19,200 points. The strategy for the period would be to utilise the range-bound movement to trade the market and use sharp dips to buy and sharp rallies to sell.
Independence Day holiday on Tuesday (August 15) would reduce the period to four days and cause some extra volatility. Credit policy outcome on Thursday is expected to remain unchanged and would hardly impact markets in any significant way. The commentary on inflation could cause some ripples in the market, which in any case is volatile. Trade cautiously.
(The author is the founder of Kejriwal Research and Investment Services,
an advisory firm)
