There are strange coincidences in the market which just cannot be explained. One more happened last week when markets had a great Friday like the previous week. The only difference this time was that in the previous week markets closed positive because of Friday’s movement, this time around it just wasn’t enough and closed negative.

The BSESENSEX lost 1.02% whilst NIFTY lost 0.98%. RBI in its policy meet kept rates unchanged on expected lines. There is plenty of action in midcap and smallcap stocks and this week the BSESMALLCAP index lost 2.76%. The valuations of these stocks is still substantially high and needs to further correct.

Primary markets saw the IPO of Teamlease Services Limited got subscribed 66.02 times helped in no small measure by a huge 185 times subscription from the leveraged HNI investor. His cost of funding is roughly Rs 210-215 while grey market premiums were higher. While the success of this issue at this point based on the level of subscription is clearly there, the issue would have to list and trade at a 4 digit level and upwards for a safe exit for HNI’s or there could be panic on the counter.

Another IPO from virus software company Quick Heal Technologies Limited opens today and closes on Wednesday the 10th of February. The issue is in a price band of Rs 311-321 and would raise Rs 445-451 crs. The anchor investors were allocated shares at the top end of the price band and there are a total of 10 anchor investors comprising of 13 entities.

Markets will be choppy and will wait for direction from the Union budget which would be presented on 29th February.