Markets would begin trading today after an extended weekend with religious holidays on Thursday and Friday. Markets gained about one and a half percent with the benchmark BSESENSEX up 1.54% and NIFTY 1.47%. The week ahead sees March futures expiring on Thursday the 31st of March with the series up a staggering 10.70%.
Ever since the budget was presented markets have been on a roll and have gained over 2,700 points on the BSESENSEX from the low of 22,600 on budget day. All eyes are now on the RBI governor and there is hope that he would oblige with a rate cut. There is also a possibility that if he so decides he may do it even outside the policy and we have a gift in the form of a rate cut on the very first day of April.
Primary markets saw two issues closing in the week gone by and both of them managed to get subscribed. The first was Bharat Wire Ropes which raised Rs 70 crs in a price band of Rs 40-45 was subscribed 1.21 times. The second was Infibeam Incorporation Limited which was to raise Rs 450 crs in a price band of Rs 360-432. The issue had a reservation of 75% for QIB’s and just managed to get subscribed with the number of shares bid to be allotted at the top end of the band. The response was disappointing considering the fact that not a single share was bid for by domestic funds even though they had the best resource mobilisation in the calendar year 2015. E-commerce is the buzz word and this was the first company to list on the bourses, yet such cold response is intriguing. The listing of this stock will cause an upheaval in the valuations and ratings of private equity funded e-commerce companies in the country.
The beginning of the new financial year will see a spate of issues tapping the markets and once again two micro finance companies are expected to do so in April 2016. They are likely to be Equitas which is a Chennai based company into micro finance, home loan and vehicle finance and Ujjivan a pure micro finance player. There is a catch in these two issues that FII’s cannot apply in the IPO but may buy post listing with some conditions. How they fare without FII support would be a moot point.
Shares of Healthcare Global Enterprises the oncology hospital chain are to list this week. The issue had been oversubscribed.
Markets would be volatile and it would be interesting to see how the bulls press home their advantage in the four days of trading remaining in the current settlement. Coincidentally 31st March when futures expire would also be a day for NAV propping and we could see some crazy price movements in select stocks.
