Take advantage of the opportunities, as there is no single sustainable trend in the markets, as yet
It was a four day week and markets lost on three of the four days. Friday saw big losses in the market and gains of earlier days in the week turned to losses.
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The BSESENSEX lost 59.60 points or 0.20 per cent to close at 29,858.80 points. NIFTY lost 18.75 points or 0.205 to close at 9,285.50 points.
The broader indices saw the BSE100, BSE200 and BSE500 lose 0.22 per cent, 0.29 per cent and 0.26 per cent respectively. BSEMIDCAP lost 0.54 per cent and BSESMALLCAP lost 0.11 per cent.
Coming out tops
The top performing sector was BSECON DUR which was up 2.12 per cent followed by BSEREALTY 1.67 per cent and BSEBANKEX 1.40pe cent. The top loser was BSEMETAL down 4.08 per cent followed by BSEHEACAR 2.15 per cent and BSEOIL&GAS1.77 per cent. In individual stocks, the top gainer was ICICI Bank up 7.59 per cent followed by SBI 2.25 per cent and Hind Unilever 2.05 per cent. In other stocks, PSU Banks saw Canara Bank up 11.22 per cent and Union Bank 9.39 per cent. The top loser was Tata Motors and Vedanta both down an identical 8.31 per cent, followed by Hindalco 6.76 per cent and Lupin 6.53 per cent.
The Indian Rupee lost 13 paisa or 0.20 per cent to close at Rs 64.37 to the US Dollar. Dow Jones was up 66.43 points or 0.32 per cent to close at 21,006.94 points.
Looks very tired
The action in the primary market continues and comparatively speaking, it appears that the secondary market is now looking tired. The IPO from IRB INVIT, the first infrastructure investment trust was a super success getting oversubscribed 8.57 times. The QIB portion was subscribed 10.81 times and the non QIB portion was subscribed 5.89 times.
There were 62,275 applications received in the non QIB portion which means that the issue in that category was subscribed 5.46 times on basis of number of lots. The issue garnered support for 24,000 crore. This is an instrument which earns interest and dividend and is currently more attractive than tax free bonds yield. This instrument would see many more offerings in the future because of this unique feature.
The Government of India owned HUDCO is tapping the capital markets with its offer for sale of 20.40 crore shares in a price band of R 56-60 to raise R 1,142-1,224 crore. There is a discount of R 2 for retail shareholders and also eligible employees.
Coming from the government and being in the housing space, the issue is expected to garner lot of attention and would be oversubscribed many times over.
The issue from S Chand and Company would list on Tuesday March 9. The issue had received excellent response and was oversubscribed 59.49 times with HNI portion subscribed 204.65 times.
This would be the first stock in the education sector which would be making money for investors in recent times. Earlier issues like C L Educate, MT Educate and even Career Point disappointed market participants.
Mixed bag
Result season is on but so far no clear trend has emerged. The results are a mixed bag and one cannot determine what could be a sustainable trend from them so far.
Markets are more than richly valued and if results do not show a marked improvement, there would have to be a correction even though liquidity is a very strong driver. Markets would undergo a time correction where values do not dip or fall sharply but they become range bound.
In such a scenario, the continuous inflow of new primary market issuances would keep markets busy and pre-occupied.
It makes sense to use sharp market rallies or falls to sell and buy respectively. Plenty of opportunities would be available to enter and exit markets.
Arun Kejriwal is founder of the Mumbai-based advisory firm Kejriwal Research & Investment Services Pvt Ltd.
Disclaimer: No financial information whatsoever published anywhere in this newspaper should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is for educational and information purposes only.
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