Markets were on a roll and the observation that markets have a strong rally in July, was proved correct yet again. BSESENSEX gained 840.48 points or 2.25% to close at 37,336.85 points. NIFTY gained 268.15 points or 2.38% to close at 11,278.35 points. While BSEMIDCAP and BSESMALLCAP recorded impressive gains of 4.50% and 4.43% respectively, these indices are nowhere near a new high. They are still lower by 15% and 22% from their January 2018 tops, while BSESENSEX and NIFTY are trading at lifetime highs.

July futures ended on a very positive note gaining 578.20 points or 5.18% to close at 11,167.30 points. This was followed by a super Friday where markets gained even further. Dow Jones was up 392.94 points or 1.54% at 25,451.06 points.

In primary market news, the issue from HDFC AMC received overwhelming response and was oversubscribed 83.06 times. The total number of applications was a record 25.30 lacs beating the previous best of Cochin Shipyard and HUDCO. Cochin Shipyard saw 20.75 lac applications while it was 20.13 lacs in the case of HUDCO.

Different sectors have been moving differently at various times. Leading the pack of gainers this time around was cement and metals. The bricks and mortar stocks were back in the limelight as construction and manufacturing activity saw a boost. The auto pack was a loser and the two-wheeler stocks were under pressure led by Bajaj Auto and Hero Moto.

Banking stocks seem to have moved a full circle. ICICI Bank reported losses for the quarter, a new first for the bank while bank of Baroda reported higher profits because of improvement in quality of assets. Strange are the ways of the sector.

Markets have built up a momentum of their own and this would carry it forward for some time. While this is unchartered territory for the benchmark indices, there is a long way to go for mid and small cap stocks. This momentum would be there for some time and one needs to be careful not to get tempted and buy the smaller stocks either based on momentum or price fall basis.

Enjoy the last two days of the July rally and its spill over into August.

The offer for sale for 2,54,57,555 shares received overwhelming response and created a new demand in terms of number of applications. The issue was oversubscribed 83.06 times and received 25.30 lac forms. This number was far greater than the 20.75 lac applications received in the issue of Cochin Shipyard which was the previous record. A point to be noted here is that PSU issues offer a discount to retail investors which does bring in some more forms.

The company had earlier allotted 66,53,265 equity shares to 35 anchor investors comprising of 61 entities at Rs 1,100. The price band was Rs 1095-1100. The issue was subscribed 192.26 times by QIB’s, 195.15 times by HNI’s and 6.73 times by retail. As mentioned earlier there were 20.75 lakh applications. The employee quota was subscribed 1.52 times. Shareholder quota was subscribed 2.69 times.

The issue garnered subscription worth 1.72 lakh crs and sets a record. The demand was so high that interest rates for the leveraged investor which used to be around the 5-5.5% levels have shot up to around 10% for this issue. The indicative grey market premium of over Rs 600 does allow the leveraged investor to make more than a decent gain currently.

The full list of application made bucket wise is given below: –