Street signs: Bank stocks to dictate direction, Equitas SFB a hit, and more

Bank stocks to dictate the direction

The Nifty and the Bank Nifty indices closed last week with a loss of 1.3 per cent, ending at 11,762 and 23,533, respectively. Analysts believe financial stocks are interestingly poised and will set the tone for the markets. “The Bank Nifty has established a Bullish Harami pattern. In the next few days, it looks like the broader market will move towards the trend in financial stocks,” said Shrikant Chouhan, executive VP-Equity Technical Research, Kotak Securities. He said if the Nifty breaks 11,660, the trend may turn bearish and see the index slipping to 11,500 level.

Sundar Sethuraman

Equitas SFB a hit in grey market

Equitas Small Finance Bank (SFB) is likely to see good response for its Rs 520-crore IPO, going by the trend in the grey market. Shares of the Chennai-based lender are commanding a premium of 25 per cent over its IPO price in the grey market. Equitas SFB had to halve its issue size and lower its valuation due to the pandemic. Market pla­ye­rs said the IPO is attractively priced. The price band is Rs 32-33 per share. The IPO opens on Tuesday and closes on Thursday. 

Sundar Sethuraman

FPI registration nod for Bhutan 

The government has approved Bhutan as an eligible country to register as foreign portfolio investor under regulation 4 (d) of Sebi's Foreign Portfolio Investor (FPI) regulations. The Section stipulates that a government or government-related investor shall be considered as eligible for registration, if such an applicant is a resident in the country that is approved by the Government of India.

Ashley Coutinho