Street signs: Large AMCs corner SIP pie, GMP strong for new IPOs and more

Inflows through the SIP route have been strong this financial year, even as lump-sum investments have slid

Nifty, Bank Nifty near key supports

The Nifty and the Bank Nifty are hovering around their key support levels, and a breach could trigger another 2-5 per cent correction, say analysts. “The 100-day moving average (DMA) of 17,168 is immediate support. Below this, the Nifty is likely to retest its previous swing low of 16,782, while 16,700-16,400 is a critical demand zone for the Nifty for a strong pull-back,” says Santosh Meena, head of research, Swastika Investmart. Meanwhile, the Bank Nifty is also close to its key support of 200-DMA of 35,750. “If it starts to trade below its 200-DMA, we can expect further weakness, where 35,000-34,800 is an immediate demand zone, while 34,000 will be the next critical support level,” said Meena. On Friday, the Nifty closed at 17,197; the Bank Nifty ended at 36,197.

Large AMCs corner large SIP pie

Inflows through the systematic investment plan (SIP) route have been strong this financial year, even as lump-sum investments have slid. Both in September and October, SIPs witnessed inflows of Rs 10,000 crore each. Industry players say bulk of the SIP inflows are being garnered by large fund houses. “The top five fund houses are garnering 65-70 per cent of the SIP money every month,” said a senior industry official. If true, the share of the top five players of the SIP pie will be higher than their overall AUM share. The top five fund houses account for 56 per cent of the overall AUM, while the top 10 players account for nearly 82 per cent.

GMP strong for most new IPOs 

The IPO of Tega Industries, which closed last week, garnered one of the highest-ever subscriptions. If grey market activity is anything to go by, the forthcoming IPOs, too, could see enthusiastic response. The grey market premium (GMP) for Rategain Travel, a company that provides software support to the hotel and airline industry, is around 30 per cent, while that for private wealth manager Anand Rathi is also more than 20 per cent. “While the GMP for upcoming IPOs is good, one needs to keep an eye on the secondary market. If volatility spikes, we could see sentiment turn sour, even for the primary market,” said an analyst.