InvestorQ : How do you see the stock markets for 24th August? Also I wanted to ask you about the two IPOs listing today? What is your view?
Dhwani Mehta made post

How do you see the stock markets for 24th August? Also I wanted to ask you about the two IPOs listing today? What is your view?

Answer
image
diksha shah answered.
4 months ago
Follow

While the Nifty and the Sensex were higher on Monday, the overall breadth was on the negative side. For example, the Nifty closed near 16,500 while Sensex closed at 55,555 on Monday. However, if you look at the Nifty A/D ratio of 22:27, it indicates that that the rally was not broad-based. In fact, pressure on mid-caps and small caps was much higher.

IPO did not have a good day on Monday. Nuvoco Vistas listed nearly 15% lower and closed the day around 8% lower on the NSE and the BSE. There was considerable institutional selling. For Tuesday, Aptus Value Housing and Chemplast Sanmar, are going to list but both are already quoting at a discount to the IPO price in the informal GMP market.

Foreign investors were net sellers worth Rs.1,363 crore on 23 Aug while domestic institutions bought Rs.1,453 crore of equities. This FPI selling, it must be noted, was largely driven by selling in Zomato since the mandatory lock-in period of 1 month for the anchor investors had expired on Monday and that had led to selling in Zomato counter.

In international markets, Dow was up sharply but the NASDAQ rallied as much as 60 bps on Monday. European markets were in the green indicating that taper concerns were not top of the mind anymore. In early trades, even the SGX Nifty is trading 55 bps higher and it promises to be a strong opening, although sustenance will be a major challenge.

7 Views