The markets gained on all five trading days of the week and in the process, have come quite close to their all-time highs. The BSESENSEX gained 585.09 points or 1.85% to close at 32,272.62 points while NIFTY gained 150.60 points or 1.52% to close at 10,085.40 points. There were no sectoral losers and all sectors registered gains.
While geo-political tensions continue it appears markets are unaffected and even the Dow Jones registered strong gains of 470.55 points or 2.16% to close at 22,268.34 points.
Action in the market is focused on the primary market and the liquidity in the system is driving subscription. Shares of Capacite Infraprojects Limited had a great showing and created a record when it was oversubscribed 183.03 times. QIB portion was subscribed 131.32 times, HNI a massive 638 times and Retail 17.57 times. The issue size was Rs 400 crs and the company garnered subscription of Rs 39,000 from HNI’s and Rs 52,400 crs overall including the anchor portion. The cost of funding for the leveraged HNI would be more than 60% of the IPO price of Rs 250 at between Rs 160-168.
The issue from ICICI Lombard has opened on Friday the 15th of September and would close on Tuesday the 19th of September. The company would be raising Rs 5,700 crs in a price band of Rs 651-661. This would be followed by SBI Life Insurance raising Rs 8,400 crs through an offer for sale of 12 cr shares in a price band of Rs 685-700. Valuations at almost market highs are bound to be expensive. The true test would be their sustaining post listing.
Markets are at crucial levels. A breakout beyond the previous highs would ensure some more upward movement. A failure to do so could trigger some consolidation and then the listing of the insurance companies would determine the trend.
