The markets have in the recent 5-6 weeks been super volatile, first falling as the year end approached and then over two weeks rising double fast. The last week has seen yet another fall and though it was a weekly loss of just about 1.5% on the SENSEX and 2.00% on the NIFTY, markets have turned distinctively weak. Results season is just seeing the biggies declare their results with Reliance recording a great set of numbers and TCS numbers in line with expectations but signalling that IT is under pressure.
Parliament resumes session today onwards after a break post passing of the budget and it would be keenly followed to see what happens to the land bill. There were amendments brought to the same and re-promulgated. The PM is committed to having the same cleared and the Congress is opposing the same. The role of the smaller parties would be of significance and which way they vote or swing would decide the fate of the bill. The route of using joint session of parliament is still open but if things can happen without that why not?
There seems to be a mini revival in the primary market. There have been three IPO’s listed in the form of Ortel, Adlabs and Inox Wind while a fourth completed its fund raising on Friday. There is an issue opening tomorrow from MEP and another next week from UFO Moviez. If FPO is also to be considered then the government successfully sold 5% of REC as well. There is an attraction to apply for shares in a primary market and there is a full machinery of people associated with it. Even at the point of being repetitive let me state that the investor is the one who lays the golden egg and people (merchant bankers and promoters) must not in their greed kill the goose who lays the golden egg. Let the entire machinery make money.
As long as issues which raise money are able to list and retain the issue price it would be good enough for the primary market to absorb more issues. The turning point is when consecutively issues bomb, that kills the just about recovering market. Keep your fingers crossed and hope that greed does not overtake rationale thinking in pricing.
More of the market next week. This week enjoy the happenings in parliament and the two issues one of which opens on Tuesday and the other opening next week.
