Shillong, July 9: The markets experienced another week of reaching new highs, but also displayed vulnerability as they corrected sharply on Friday. Volatility has become a prominent feature, with significant movements in both directions. While it is uncertain whether the market has reached its peak, further evaluation is needed before determining the next course of action. The upcoming quarterly results will play a crucial role in shaping future market movements.
The BSESENSEX closed at 65,280.45 points, gaining 561.89 points or 0.87%. Similarly, the NIFTY closed at 19,331.80 points, gaining 142.75 points or 0.74%. In the broader market, BSE100, BSE200, and BSE500 rose by 0.73%, 0.75%, and 0.85%, respectively. BSEMIDCAP saw a gain of 0.77%, while BSESMALLCAP surged by 1.62%. Out of the five trading sessions, markets recorded gains on three, remained flat on one, and experienced losses on the last trading session.
As per IANS, the Indian Rupee faced pressure and lost 70 paisa or 0.85% against the US dollar, closing at Rs 82.74. Dow Jones also witnessed mixed performance, gaining on the first day but losing on the remaining three days. Due to the American Independence Day holiday, Tuesday’s trading session was closed. Dow Jones closed at 33,734.88 points, down 671.11 points or 1.95%.
In primary market news, the week featured two listings, one open and closed subscription issue, and the withdrawal of another issue that had opened in the previous week due to insufficient subscription.
HMA Agro Resources Limited, which listed shares at Rs 585, experienced initial gains but closed with a minor loss at Rs 584.75, down by Rs 0.25. By the end of the week, the share price recovered and closed at Rs 588.30, marking a gain of Rs 3.30 or 0.56%.
Drone maker IdeaForge Limited made its debut on Friday with an exceptional response from investors. The issue, subscribed over 100 times, had shares issued at Rs 672. The share closed at Rs 1,295.50 on its first day, registering a massive gain of Rs 633.50 or 92.78%.
Senco Gold Limited, which had a fresh issue of Rs 270 crore and an offer for sale of Rs 135 crore, received an over subscription. The overall issue was subscribed 73.35 times, with the QIB portion subscribed 180.94 times, HNI portion subscribed 64.98 times, and Retail portion subscribed 15.45 times. The company received 14.25 lakh applications in total.
However, PKH Ventures Limited experienced a minimal subscription rate of 0.65 times. The QIB portion was subscribed 0.11 times, HNI portion 1.67 times, and Retail portion 0.99 times. The company attributed the poor response and subsequent withdrawal of the issue to prevailing market conditions. Given that the markets are at all-time highs, it raises questions about whether market conditions alone can be blamed for the inadequate response.
Looking ahead, Utkarsh Small Finance Bank Limited will be launching its issue in the capital markets. The company aims to raise Rs 500 crore through a fresh issue, with a price band of Rs 23-25. The issue will open on Wednesday, July 12, and close on Friday, July 14. Utkarsh Small Finance Bank operates as a small finance bank, primarily focused on microfinance and other lending products in the Hindi heartland of Uttar Pradesh, Bihar, and Jharkhand.