Indian markets followed the logjam in Parliament and lost on four of the five trading sessions. They had a sharp rally on Wednesday hoping that GST bill which was approved by the panel set up for examining the same would be cleared. To add to the concerns of the market, global cues were not positive either with Dow Jones losing 518 points or 2.86% to close at 17,568.53 points.
The week ahead has plenty of global data to be announced including the US FED meeting on 28th/29th of July. Clarity and time line on raising of interest rates should emerge post the meeting. In India we have July series futures expiring on Thursday the 30th of July. Currently the bulls have their noses ahead with the NIFTY’s Friday close higher by 123.55 points or 1.47% against June expiry value of 8,355 points. Not much they have four days to defend and win from the bears.
There is an OFS in PFC where the government is offering 6.6 cr shares at a floor price of Rs 254 against the close of Rs 259.55. This is the first OFS under the new rules where there are two changes which have been made. The first is the information about the offer is made 48 hours before opening and Saturday is treated as a working day. The second is that there is a cut off price for retail investors which is the lowest price at which shares are allotted to non-retail investors.
Monday also sees a primary offering from Syngene International Limited which is a subsidiary of Biocon Limited. The company is offering 2.2 cr shares in a price band of Rs 240-250. On Friday it completed allocation of 60 lac shares to 13 anchor investors and 14 entities at the upper end of the price band of Rs 250. The shares are being offered at a PE multiple of 26.08 to 27.17 times. The issue looks expensive considering that the parent has not made impressive returns for shareholders.
All in all an exciting week ahead with plenty of events to keep the market participants guessing about the trend. Keep a look out for the OMC’s when they declare results as Reliance has reported a hefty increase in gross refining margins of $10.4 a barrel for the June quarter against 8.7 in the previous year and 10.1 in the March quarter of FY15.
