ALSO READGodrej Agrovet files IPO papers with Sebi Godrej Industries stock hits all-time high on Agrovet IPO approval Monsoon hopes raise Godrej Agrovet's prospects Godrej Agrovet IPO to open Oct 4; price band fixed at Rs 450-460 per share Succession 2.0 in motion: Eldest son of Nadir Godrej to join Godrej Agrovet
With the Securities and Exchange Board of India (Sebi) deferring the implementation of a new rule mandating India Inc to disclose any loan default within 24 hours two days before its implementation, many traders are likely to be caught on the wrong foot. Taking advantage of the already weak sentiment, traders had built short positions with the view that the new rule could impact several stocks negatively. However, Sebi’s breather to India Inc could trigger a positive reaction, say market players. Repayment defaults are common but never make it to the public domain as companies make sure they don’t lose their ‘standard asset’ tag by making payments just before the end of the 90-day period after which an asset is classified as non-performing.
The Bank Nifty shed about 1,100 points from the highs it made during the September series, ending the series 1.3 per cent lower over the previous expiry. The expiry day saw a sizeable number of shorts getting rolled over and less aggressive rolls on the buy side, indicating sustained pressure on banking stocks. Public sector banks could come under further pressure, say experts and the volatility is likely to continue in this series as well. The index faces resistance at 24,350-24,500 and a return to stability hinges on the index crossing these levels. On the downside the index could test 23,500 levels.
The weakness in the market notwithstanding, shares of Godrej Agrovet, a company focused on agri business, are commanding a 25 per cent premium in the grey market.
In the grey market, its shares are trading Rs 110 higher than the issue price of Rs 450-460. Meanwhile, shares of Mas Financial Services are changing hands at a premium of just five per cent. Both Godrej Agrovet and Mas Financial public issues open this week.