The week gone by was volatile and had plenty of action and drama as well. Many things happened on expected lines and it appeared in hind sight that it was designed for the capital markets. The issue from Space-X happened, NSE filed its DRHP and at the Reliance AGM, the IPO from JIO Platforms has also been announced and filed. More importantly we have one mainboard IPO which has opened on Friday and two more which would open on Tuesday. Eventful week no doubt.
Markets gained on four of the five trading sessions and lost on one. BSESENSEX gained 1,274.95 points or 1.69% to close at 76,802.90 points while NIFTY gained 390.20 points or 1.65% to close at 24,013.10 points. BANKNIFTY gained 870.95 points or 1.53% to close at 57,685.75 points. The broader markets saw BSE100, BSE200 and BSE500 gain 1.97%, 2.16% and 2.35% respectively. BSEMIDCAP gained 5.68% while BSESMALLCAP was up 6.26%. The top sectorial gainer was BSE CAPGOODS which gained 5.97% while the top loser was BSEIT which lost 1.25%. As a matter of fact, BSEIT was the only sectorial loser.
The highs and lows which were made on BSESENSEX and NIFTY during the week were as follows. Lows were made on Monday, the first day of the week itself at 76,140.44 points and 23,817.80 points. The highs were made on Thursday at 77,492.33 points and 24,189.25 points.
The Indian Rupee gained 38 paisa or 0.40% to close at Rs 94.45 to the US Dollar. Dow Jones gained on three of the four trading sessions and lost on one. It gained 362.44 points or 0.71% to close at 51,564.70 points. The US FED has kept rates unchanged at its latest meeting held on 16th and 17th of June. Rates would continue at 3.5% to 3.75%. The decision was unanimous by a vote of 12-0.
The issue from Turtlemint Fintech Solutions Limited has opened from Friday 19th June to Tuesday 23rd of June. The issue consists of a fresh issue of 4.35 crore shares and an offer for sale of 1.46 crore shares in a price band of Rs 144-152. The company is a digital Insurance distribution platform. It enables the need for guidance and advisory for selection of right insurance product for the masses, a subject which is of high importance. We all understand and agree that insurance is highly underpenetrated in India and needs to be used by a much larger population than presently what number is. Along with under penetration, knowledge of why insurance and what insurance is virtually missing. This platform addresses these issues. In terms of performance the company sold 2.18 crore policies in the period April 22 to December 25, a period of 45 months. In terms of financial performance, they are yet to break even and make profits. However, they have done the hard work and should report profits in the year ending March 2027.
The company is a long term play and meant only for investors with a medium to long term duration.
The second issue is from Jewellery maker Advit Jewels Limited which is tapping the markets with its entirely fresh issue for 119.68 lakh shares in a price band of Rs 130-138. The issue opens on Tuesday the 23rd of June and closes on Thursday the 25th of June. The company is a manufacturer of exquisite Jadau Jewellery including, polki, minakari and emeralds and precious stones. This is legacy Jewellery which is hand crafted by skilled artisans and worn by brides of the HNI category and men as well. Jewellery is bound together by gold and various stones, emeralds and other precious stones are set in 14K and 18K gold. This Jewellery is not commercial gold Jewellery and is rarely recycled but passed down through generations. What began as bridal wear by the Marwari and Gujarati communities, is now much more widely accepted and is part of any celebrity wedding. Margins at the PAT level in this company are at 20% only because of the extensive nature of hand crafted Jewellery. Currently the company is basically a B to B player but post the issue intends to enter the B to C space as well which is highly lucrative. It premier showroom in Jaipur is expected to open around Diwali 2026 and would be a big boost for the company. The share is meant for medium term investment and it has interesting prospects looking at the business growth plan.
The third and final issue is from Waterways Leisure Tourism Limited which is tapping the capital markets with its entirely fresh issue of Rs 585 crores. The company is a cruise liner and currently operates with one ship, MV Empress. It has contracted two more ships which would operate in fiscal 2027 and 2028, making a total of three ships. With these three ships, the company would be able to offer multiple choices and routes to customers domestically and internationally. The government has also been encouraging the operation of its inland waterways and passenger terminals have been built to facilitate passenger comfort. The ship operates 365 days a year and is currently offering various packages across one day, two days, three days extending to five and six day packages. Its occupancy is around the 90% level and the company is profitable for the year ended March 2026. The PE multiple of the company is at 96.01 to 100.75 times its earnings for March 26 financial year. There is no other competitor operating in this space making it virtually a monopoly. For sake of comparison, the company has compared itself with listed Hospitality companies. The addition of the second ship in little over a quarter and the third ship 5-6 quarters later, would add to the companies operational excellence as flexibility in routes and capacity would be available. Inventory of over three times would then be available on offer.
The broad terms of the Iran-USA agreement entail a ceasefire of 60 days between the US and Israel on one side and Iran and Lebanon on the other. Further the Strait of Hormuz would be opened up and it be cleaned of all mines. Thirdly all frozen money of Iran would be released and sanctions imposed on Iranian oil be lifted. Issues about operations and nuclear would be debated and discussed over the next sixty days. While the digital signing happened some three days ago, things are again at a standstill because Israel attacked Lebanon. I believe the final discussion will be time consuming and contentious. One step forward, two steps backward and so on. It will keep people occupied with no major impact. It would however offer trading opportunities.
Coming to the markets they will look to settle down in a broad band. It appears that currently support exists at around 23,800 points and resistance at around 24,600 points. For markets to become bullish, we need to cross 24,600 decisively. Can it happen right away? Looks doubtful. Signs however are good. FPI’s have stopped selling and are making small purchases instead. This means that their view is changing. The current quarter has been a challenging one for almost all concerned. Results for the quarter April-June 2026 will start rolling out in another fortnight. One hopes that we would have some positive companies showing promise emerging. India has signed some trade agreements and hopefully even the US deal would happen sometime now. All of this augurs well going forward.
The strategy for the week ahead would be to play in the broad market band of 23,800-24,600 points and one can also take overnight positions as there is substantial clarity now available. For any decisive breakout or breakdown, levels have been spelt out which makes matter clear.
Trade cautiously and maybe with the primary market becoming active all over again we should see better traction in the markets as well.
