Street Signs: Litmus test for IPO mkt, WhatsApp is Sebi's bogey, and more

A firecracker November series likely

The benchmark Nifty rose 5.5 per cent during the October derivatives series. Analysts are expecting the markets to perform well during the November series which started on a positive note. “Going into the November series, we will be bullish and assign a higher probability of a breakout on the upside after a long spell of consolidation. We will be a buyer on dips. Key levels for the index will be 17,900/18,100 and 17,500/17,300. A breakout above 18,100 can take the index to its previous highs. Reversal in the dollar index and softening US 10-year bond yields are mirroring expectations of major central banks, possibly slowing the pace of aggressive rate hikes in the months ahead,” said Sriram Velayudhan, vice-president, IIFL Alternative Research. The Nifty last closed at 17,787.

Litmus test for IPO market

The grey market premium (GMP) for the four initial public offerings (IPOs) that open this week is a mixed bag. According to market players, DCX Systems is commanding the highest premium of nearly 40 per cent, followed by Bikaji Foods at 27 per cent. Meanwhile, the GMP for Global Health and Fusion MicroFinance are in single digits. GMPs tend to fluctuate wildly and may not be an accurate representation of after-listing performance. This week, four companies are looking to raise more than Rs 4,100 crore via IPOs. Experts say this will be a litmus test for the IPO market.

‘Disappearing’ WhatsApp is Sebi’s bogey

The ‘disappearing messages’ feature introduced by WhatsApp is proving to be a major irritant for the Securities and Exchange Board of India (Sebi) officers. Introduced nearly a year ago, the feature is an impediment to tracing insider trading cases. But call data records and phone recordings are proving to be invaluable tools for Sebi. It recently suffered a setback in a WhatsApp leaks case after the Supreme Court rejected its appeal to penalise a broker for sharing stock price-sensitive data on WhatsApp on the grounds that the regulator could not find the primary source of the message. Telegram, too, has evolved into a platform for information-sharing. Sources said Sebi is working on various techniques to stay ahead of the curve.