The month of March was a great one for the Indian stock markets and the March futures series which ended on the 31st of March saw the series gain 767.80 points or 11.01%. Bulls pressed home the advantage and after the budget when FII’s turned positive and became buyers there was no looking back. The benchmark indices were a tad negative for the week with the BSESENSEX losing 0.27% and NIFTY a mere 0.04%. The broader indices were up and so were BSEMIDCAP and BSESMALLCAP where all the action seems to be.
There is plenty of action in the primary market as well. One issue Bharat Wire Ropes Limited listed on Friday and the detailed story is on the website and also as a separate article in the newsletter. The company had issued shares in a price band of Rs 40-45, allotted at Rs 45 and raised Rs 70 crs. The issue ‘managed’ to remain above the issue price on the first day of listing and closed at Rs 45.40 and Rs 45.55 on the BSE and NSE.
The issue from Infibeam Corporation which had raised Rs 450 crs in a price band of Rs 360-432 will list today. It would be India’s first e-commerce company to get listed on the bourses. The issue was technically subscribed with just enough bids from QIB’s at the top end of the price band. The response the issue receives on listing today will be keenly watched.
The IPO from Equitas , the microfinance company with vehicle finance and home loan verticals opens tomorrow. The issue consists of a fresh issue of Rs 720 crs and an offer for sale of approximately 1455 crs in a price band of Rs 109-110. The price band is probably the narrowest one has seen in recent times with a mere 0.9% difference. Eady nb
RBI meets on Tuesday for its monetary policy review and a 25 basis point cut has already been discounted. Fundamentals indicate that a further cut is possible but one can be sure that the Governor would like to wait for the progress of the monsoon before doing so. Unless there is a higher cut one should not expect any volatility on this count.
Markets would now wait for quarterly results for the January-March quarter and see if there are any visible signs of a turnaround. Let’s keep our fingers crossed on this front and hope that the turnaround is visible.
Markets in the new financial year 2016-17
Performance of Newly Listed Shares as on 1st April 2016
| Name | Date of listing | Issue Price | closing price | closing price | % gain loss | change over |
| 1st April | 23rd March | Over week | lssue price | |||
| Alkem Laboratories Limited | 23rd Decemeber | 1050.00 | 1322.50 | 1356.75 | -3.26 | 25.95 |
| Dr Lal Pathlabs Limited | 23rd December | 550.00 | 642.25 | 925.75 | -51.55 | 16.77 |
| Narayana Hrudayalaya | 6th January | 250.00 | 289.50 | 293.30 | -1.52 | 15.80 |
| Precision Camshaft Limited | 8th February | 186.00 | 148.30 | 144.80 | 1.88 | -20.27 |
| Teamlease Services Limited | 12th February | 850.00 | 901.00 | 921.75 | -2.44 | 6.00 |
| Quickheal Technologies Limited | 18th February | 321.00 | 223.30 | 224.00 | -0.22 | -30.44 |
| Bharat Wire Ropes Limited | 31st March | 45.00 | 45.40 | N A | 0.89 | 0.89 |
Bharat Wire Rope Limited – Manages to eke out gains on listing day
Shares of Bharat Wire Ropes listed on the bourses on Friday and managed to hold on above the issue price of Rs 45. The company had tapped the capital markets with its primary offering to raise Rs 70 crs in a price band of Rs 40-45. The issue had received decent support and the QIB portion was just about subscribed with there being one FII.
The issue listed at a premium and the discovered price was calculated in a manner to ensure that even if the share closed at the lower circuit it just about remained near the issue price. The discovered price on the BSE was Rs 47.35 while it was Rs 47.25 on the NSE. The high of the day was the discovered price on the NSE while it was marginally higher on the BSE at Rs 47.50. Trading for the share was in trade to trade mode and the total traded volume on the two exchanges combined was 61.67 lakh shares which is a staggering 40% of the issue size of 155.55 lakh shares.
Bulk trade details suggest that there was one FII which sold. Cresta Fund sold 5,84,298 shares at Rs 47.25 on the NSE. Besides this there were no other sellers whose name appeared in bulk trade. On the buying side there were six entities on the NSE and two entities on the BSE who together bought 39.95 lakh shares.
| Exchange | Open | High | Low | Close | Net Change | % Gain/loss | Wt. Avg | Volume | Delivery | Del %age |
| BSE | 47.35 | 47.50 | 45.00 | 45.40 | 0.40 | 0.89 | 46.25 | 1696605 | 1696605 | 100.00 |
| NSE | 47.25 | 47.25 | 44.90 | 45.55 | 0.55 | 1.22 | 46.39 | 4470641 | 4470641 | 100.00 |
| Total | 6167246 | 6167246 | 100.00 |
From the table above it is clear that the share was under pressure and there was induced buying support, as a result of which the share closed above par at Rs 45.40 on the BSE and Rs 45.55 on the NSE. The weighted average was Rs 46.25 on the BSE and Rs 46.39 on the NSE. The bulk of the trade happened in the first half hour of trade and thereafter the volumes were on the decline.
The funds have been raised for setting up a state of the art wire and wire ropes manufacturing facility at Chalisgaon in Maharashtra. The management feels that the project would be commissioned by December 2016. Till then there are no drivers for this company and it would be interesting to see how the entities who have supported the share on day one exit.
