Shillong, September 17: Last week, the markets continued their upward trajectory, initially surging past 20,000 on NIFTY.
However, midcap and Smallcap stocks faced a sharp correction on Tuesday. Despite this hiccup, the market remains optimistic, and the buoyant sentiment is expected to persist. India stands out globally with its unrelenting market rally.
As per IANS, throughout the week, benchmark indices consistently gained, with midcap and Smallcap indices also registering positive movements on four out of five days. Nonetheless, the Tuesday correction led to losses for BSEMIDCAP and BSESMALLCAP, with BSEMIDCAP dropping by 1,000 points and BSESMALLCAP by 1,600 points.
BSESENSEX closed at 67,838.63 points, up by 1,239.72 points or 1.86%, while NIFTY reached 20,192.35 points, gaining 372.40 points or 1.88%. Broader indices like BSE100, BSE200, and BSE500 recorded gains of 1.53%, 1.32%, and 1.04%, respectively.
The fall in Smallcap and midcap stocks on Tuesday raised questions about the segment’s stability. The future remains uncertain, and another sharp correction wouldn’t be surprising in the coming days and weeks.
The Indian Rupee depreciated by 24 paisa or 0.29% against the US dollar, closing at Rs 83.18. Meanwhile, Dow Jones experienced a mixed week, with gains on two out of five trading sessions. However, Friday’s loss of 288 points is a cause for concern. For the week, Dow Jones marginally increased by 41.65 points or 0.12%, closing at 34,618.24 points.
The IPO market is buzzing with numerous companies going public. This flurry of IPOs indicates a strong market sentiment, with promoters and merchant bankers sensing opportunities.
During the past week, two companies were listed. Ratnaveer Precision Engineering Limited, which issued shares at Rs 98, closed the day at Rs 134.40, marking a gain of Rs 36.40 or 37.14%. Basilic Fly Studio Limited listed on the SME exchange.
Rishabh Instruments Limited, with shares issued at Rs 441, closed the first day at Rs 442.75, a minor gain of Rs 1.75 or 0.39%. It closed at Rs 448.15 with a small gain of Rs 7.15 or 1.62%.
EMS Limited’s IPO received strong interest, with an overall subscription of 75.28 times. The QIB portion saw a subscription of 153.02 times, HNI portion 82.32 times, and Retail portion 29.78 times. The issue, open from September 8 to September 12, will be listed on September 21.
R R Kabel Limited’s IPO opened on September 13 and closed on September 15. It was subscribed 18.69 times overall, with the QIB portion subscribed 52.26 times, HNI 13.23 times, and Retail 2.12 times.
Zaggle Prepaid Ocean Services Limited’s IPO, which opened on September 14, has been subscribed 0.44 times so far.
Samhi Hotels Limited’s IPO, opening on September 14, has seen an overall subscription of 0.13 times.
Yatra Online Limited’s IPO, opened on September 15, has had a lukewarm response, with an overall subscription of 0.11 times.
Retail investors continue to apply for IPOs, regardless of demand from other categories, indicating increased market awareness and willingness to take investment opportunities.
Several more issues are set to open and close for subscription in the upcoming week. Signature Global (India) Limited and Sai Silks (Kalamandir) Limited are among them.
The market is characterized by high volatility, and after crossing 20,000 on NIFTY, a 3% correction is a possibility, with a target of 20,600. Given the extended bull run, investors should be prepared for corrections, large or small.
For the upcoming week, it’s advisable to focus on large cap stocks for safety and easier exit strategies. The midcap and Smallcap segments appear overheated and may experience further corrections.