Street signs: Fund houses shun airline stocks, IPO plans on hold, and more

Fund managers shun airline stocks 

Some fund houses have stopped covering Jet Airways and investing in its stock or debt issuances. The ailing airline, which defaulted on its payments, has already got a thumbs down from top mutual fund houses in recent months. Even Interglobe Aviation, the operator of IndiGo, is not a stock that gets fund managers interested. “We do not invest in airline stocks, or subscribe to their debt. While the sector has potential, there has been too many cases of default. Betting on them is rather difficult even in good times when the crude oil prices are falling,” says a fund manager.

Joydeep Ghosh

Sentiment turns positive for PSBs

The sentiment towards public sector banks (PSBs) is turning. Capital infusion, recovery in bond yields and expectations that the non-performing asset issue may have peaked out have helped. “There wasn’t much activity in these banks in the last series but the January series has seen a long build-up, and volumes coming back,” said a derivatives analyst. Counters like State Bank of India, Union Bank of India, Syndicate Bank, Bank of Baroda and Punjab National Bank have seen long formations. The Nifty Bank index fell 0.2 per cent last series. But there is a good chance it may climb to 27,400 this series. The index has downside support at 26,800 and surpassing 27,400 could take it to 27,800.

Ashley Coutinho

IPO plans on hold

The Bengaluru-based Barbeque Nation has joined the list of companies that have let their regulatory approval for initial public offering (IPO) lapse. More than 50 companies, which had received Sebi’s nod, have not launched their IPOs. Experts cite weak market conditions as the reason. Some private equity (PE) players are looking for exits by selling their stake to other PE players. Expect companies to restart the filing process when conditions turn conducive.

Sundar Sethuraman