Street sign: RBI rate cut hopes may keep Bank Nifty rally going

The Bank Nifty comfortably outperformed the Nifty in the just-concluded July series, gaining 7.3 per cent compared to the latter’s 5.4 per cent rise. The index is likely to move higher in the August series, says an analyst. A rate cut by the Reserve Bank of India (RBI) this week may further fuel the rally in banking stocks. Experts remain positive on private banks, especially on HDFC Bank, IndusInd Bank and YES Bank, which have seen a build-up of long positions with higher roll-over cost in the July series.  

Ashley Coutinho

New IPOs go at a premium in grey market

The initial public offerings (IPOs) of Cochin Shipyard and Security and Intelligence Services (SIS) will hit the market this week, and are likely to see good response if grey market activity is anything to go by. Shares of Cochin Shipyard are changing hands at a 35 per cent premium in the unofficial market, while those of SIS are trading 14 per cent higher. The success of recent IPOs and buoyancy in the secondary market are fuelling investor sentiment, say experts. Capacit'e Infraprojects, Bharat Road Network and Bharat Matrimony are next in line to launch their IPOs, say investment bankers. 

Samie Modak

Confusion over Janalakshmi’s debenture pricing

The recent rating downgrade of Janalakshmi Financial Services has created confusion among debt mutual funds, which have a combined exposure of Rs 1,400 crore in the debentures of the small finance bank licence holder. According to industry players, the valuations of Janalakshmi’s bonds have not been revised despite two back-to-back rating downgrades this month. Bond prices of corporate bonds are revised on a daily basis by a valuer, typically a rating agency. Lack of clarity over the pricing has impacted the secondary market dealings, say experts. At the end of June, a dozen fund houses held Janalakshmi debentures in their portfolio.

Chandan Kishore Kant