The markets had a torrid time with Monday and Friday seeing decent gains but terrible Wednesday knocked the winds out of the market completely. The fall was exasperating and sapped the energy of the markets completely. The net result of all these wild gyrations was almost flat with the benchmark indices gaining a tad. The BSESENSEX gained 94.08 points or 0.35% whilst the NIFTY gained 10 points or 0.12%. All other broader indices like the BSE100, BSE200, BSE500, BSEMIDCAP, BSESMALLCAP and BSEBANKEX registered losses.
The week ahead sees Rajya Sabha likely to take up the GST bill. All indications point top the fact that alliances have been sewn up. The recent weekend visit to West Bengal and launching of three schemes for the welfare of the ‘Aamaadmi’ is a pointer in that direction. With many other regional parties on board the Congress may choose to adopt its favourite tactic of first opposing the functioning of the house and then finally when the time for voting comes to stage a walk out. The passage of GST once it happens on Monday in all probability or Tuesday will give a fillip to the markets. The markets have already made some sort of an intermediate bottom on Wednesday/Thursday when the intra day lows of 26,473.99 and 7,997.15 were made.
In primary markets the issue from PNC Infra is currently on and closes on Tuesday the 12th of May. The company is having a fresh issue and a small offer for sale in the price band of Rs 355-378. The issue would raise Rs 459 crs to Rs 488 crs and post issue would have a market cap of Rs 1821 crs to 1939 crs.
The core business of the company is an EPC contractor and is also doing BOT projects. With the NDA government doing all it can to solve pending and stuck projects and their related issues, it has also announced new projects linking the breadth and width of the country. After the golden quadrilateral initiated by Atal Vajpayee it is now the garland project g=from Narendra Modi. With the time frame for projects reduced to 18 months approximately and land procurement for about 90% being done before inviting bidding the whole landscape for EPC contracts seems to have changed.
The anchor book through which the company raised about Rs 146 crs at the top end of the band is impressive and there are nine Anchors comprising of 24 entities who were allotted the shares. Buzz about the issue is on a low key currently maybe more to do with the thrashing that the markets got in the last few days. The issue would be analysed in detail tomorrow and a decision to apply or not taken based on the response to the issue from the QIB’s.
The IPO from UFO Moviez which was supposed to be a big hit but received some sort of a cold response when subscription was open lists on Friday. It would be interesting to see whether the Flying objects fly or are grounded. It would be an interesting case study for the present set of IPO’s.
Enjoy the rally and the happenings in Parliament before the Indian Premier leaves for his maiden trip to China.
