After five trading days with three of them being positive, markets ended virtually unchanged. The BSESENSEX lost 33.26 points and NIFTY lost 0.20 points. The one single driver for the market was the anticipated passage of GST bill in the ongoing monsoon session. The broader markets fared better and one saw sharp gains in many stocks.
The primary market is as buoyant as one could expect. The issue from Advanced Enzyme Technologies received excellent response and was oversubscribed 116.39 times with the QIB portion subscribed 94.53 times, HNI a massive 393.94 times and retail portion 11.69 times. The issue was to raise Rs 412 crs at the top end of the band. One is not sure about the fate of HNI’s as the cost of leverage at this level of subscription even considering the fact that interest rates have dropped sharply to 5% is still high at Rs 338. Anyway the moot point is there is an appetite for new issues and the same would continue as long as investors believe that there is something on the table for them.
Shares of L&T Infotech listed on the bourses on Thursday and history repeated itself. Five years ago on the 16 th of August L&T Finance listed on the bourses. This was a fresh issue from the Larsen and Toubro group after 61 years. Shares were issued at Rs 52 and retail investors lapped up the same because of the strong brand L&T. the share listed at a discount of just under 4% on that day and took almost 14 months to start trading above par on a regular basis. Shares of L&T Infotech were issued at Rs 710 and again received excellent response from retail. The issue was overall subscribed 11.69 times with retail subscribed 7.39 times and a record 10.90 lac application forms received. Will history repeat itself in the time taken to trade at par?
July series futures expire this Thursday and currently bulls are sitting pretty with an advantage of 253 points or 3.06%. They have the momentum on their side and if god willing GST happens this week there could be euphoria before markets peak out. In case GST is postponed to the following week markets could remain choppy and have a two way movement.
In either case brace yourself for a roller coaster ride with or out GST this week.
