Markets behaved on expected lines in the short three-day trading week gone by. They gained on two of the three days and also made new life-time highs on the benchmark indices. The BSESENSEX gained 373.17 points or 0.96% to close the week at 39,140.28 points. NIFTY gained 109.35 points or 0.94% to close at 11,752.80 points. Markets saw the benchmark indices make substantial gains on Thursday and then recede on account of profit taking and an extended week-end. BSESENSEX made a new life-time high of 39,487.45 points and then corrected to 39,083.16 points and finally settled at 39,140,28 points. NIFTY made a life-time high of 11,856.15 points, and then corrected to 11,738.50 points before closing at 11,752.80 points.

The week gone by saw two IPO’s list on Monday and Tuesday. Monday saw Metropolis Healthcare Limited make its debut. Shares which were issued at Rs 880 saw the share gain on day one to close at Rs 959.55. they gained further on Tuesday, but lost on Thursday to close at Rs 966.25, a gain of Rs 86.25 or 9.80%. The other share to list was Polycab India Limited where shares were issued at Rs 538. The share closed for the week at Rs 640.45, a gain of Rs 102.45 or 19.04%. This issue had seen huge response from leveraged HNI’s and was subscribed by them 110 times. There cost of funding was roughly Rs 80-82.

The week ahead sees April futures expire on Thursday the 25th. This would be the last expiry before the election results. The action thereafter would shift to May series where the expiry is after the 23rd of May when results would be declared. The current value of NIFTY at 11,752.80 points is higher by 182.80 points or 1.58% which is not very significant considering the volatility and the fact that we are around life-time highs. The advantage that bulls have they would like to build upon the same and not squander it away. Secondly the fall or correction on Thursday has triggered an alarm and one would have to be wary of a correction in the coming days. This is not to suggest that the bull run is over. Volatility would continue to rise and one would have a both direction market hence forward rather than the by and large upward market. Also, one should expect bigger move days hence forward.

Reliance Industries has issued yet another media briefing about it not having violated any US laws in dealing with Venezuela. Knowing the way Reliance operates, yet another briefing is completely unexpected and one can be reasonably sure that in this case there can be no smoke without fire. This can be interesting development going forward and should be keenly tracked as the share is a heavy-weight in the benchmark indices. The life time high for Reliance is Rs 1,407 and the share closed at Rs 1,383 for the week.

Jet Airways has probably ended its life in its Silver Jubilee year. Its catch line, the joy of flying had turned into a nightmare in the last couple of months. It appears for sure that there was diversion of funds in the last few years of its existence as well managed airlines do not grind to a halt in this manner. There are of course names doing the round of various suitors and one of them happens to be that of Reliance Industries. Watch this space for developments as they unfold.

The 2nd phase of voting for Lok Sabha took place on Thursday the 18th of April. The 3rd Phase of voting would be held on Tuesday the 23rd of April and would cover states 116 constituencies. Voting for the entire state of Gujarat and Kerala would be held.

The week ahead would have full five trading days and are likely to see larger intra-day moves. Trade cautiously and probably a change in strategy may be better advised instead of the earlier buy on dips and sell on rallies, it may be better to continue to sell on rallies and wait for buying opportunities.

Polycab India Limited shares listed on the bourses and had a stellar debut. Shares gained 21.75 on a day when the benchmark indices, BSESENSEX and NIFTY made new life time highs. The company had tapped the capital markets with its offer for sale of 1,75,82,000 equity shares and a fresh issue of Rs 400 crs in a price band of Rs 533-538 which received overwhelming support. The issue was subscribed over 52 times. Earlier it had allotted 74,54,119 equity shares at Rs 538 to 20 Anchor investors comprising of 25 entities.

The discovered price on both the exchanges was Rs 633. The high was Rs 667.55 on the BSE and Rs 667.80 on the NSE. The lows were Rs 633 on BSE and Rs 630 on NSE. The closing price was Rs 655 on BSE, a gain of Rs 117 or 21.75%. On the NSE the close was Rs 654.80, a gain of Rs 116.80 or 21.71%.

The traded volume was 252.28 lakh shares which was 100.84% or slightly more than the IPO size. Delivery volume was 99.94 lacs which was 39.62% of the traded volume and 39.95% of the IPO size. If one were to consider on the basis of non-anchor portion, the traded volume was 143.65%. Similarly, delivery was 56.91% of the non-anchor portion. The weighted average of the days trade was Rs 651.09 on the BSE and Rs 651.14 on the NSE. The heartening thing to note is that though the volumes were huge, the weighted average of the day was lower than the close. This indicates that the share was not under pressure at higher levels.

One other interesting takeaway is that with almost I crore share being delivered there are no names foe either buyers or sellers in bulk trade.

A good listing for Polycab and the price performance gets justified even from the leveraged HNI wo has made money even after paying about Rs 80 as cost of interest for his application.