Street signs: FPI buying lifts sentiment, HNI shift focus, and more

FPI buying lifts sentiment

The market has rebounded 9 per cent from March lows and there is likely more steam left in the rally. Experts say foreign portfolio investors (FPIs) turning net-buyers and cooling of the volatility index can provide further impetus for stocks to rally. After aggressively dumping stocks, FPIs flows turned positive in the previous two trading sessions. Further, the India Vix cooled off to 22.6, from 32 a month ago. Ruchit Jain, lead-research, 5paisa.com, says if the Nifty manages to surpass 17,330, the index can extend its up-move towards 17,500-17,800. The index ended last week at 17,287.

Premiumisation boost for fan makers

Fan manufacturers, such as Havells India and Crompton Greaves Consumer Electricals, can benefit from new energy efficiency rating norms that will be implemented in the second half of 2022. The so-called BEE star rating will help consumers choose fans with high energy efficiency. Fans use two different technologies --alternate current (AC) and brushless direct current (BLDC). Most fans available now are based on the AC technology but companies are steadily introducing new premium fans with BLDC technology. According to analysts, most fans at the economy semnet will be in the range of 1-3-star rating. But fans with BLDC technology may qualify for 4-5-star ratings. As a result, analysts say larger organised companies like Havells, Crompton and Orient Electric, will gain market shares in the long run.

HNI shift focus to SME IPOs

With IPO deals drying on the mainboard, high net-worth individuals (HNIs) and savvy investors have shifted their focus on small and medium enterprises (SME) at bourses. Market players say investors are scouting for deals on the NSE Emerge and the BSE SME platforms where there is a steady flow of IPOs. Last week, the Rs 50-crore IPO of KN Agri Resources garnered a record 200 times subscription. “While there have been no mainboard IPOs this month, the SME exchanges have seen eight deals already and two more IPOs -- PE Analytics and Empyrean Cashews -- are getting launched,” said an investment banker.