Street signs: Street turns bearish on banks

The Bank Nifty closed flat in the June series from its previous expiry close of 23,190. With a large number of short positions getting rolled over during Thursday's expiry, analysts expect public sector banks to remain under pressure in this series. Farm loan waivers in four states and higher provisioning requirements for non-performing assets have hit the sentiment towards bank stocks. The Bank Nifty will make a clear move upwards of 24,000 only if it can manage to hold 23,500 levels for a few sessions, say analysts.

                                                                                                                    Ashley Coutinho

AU Small Finance premium surges after IPO demand 

The grey market premium of AU Small Finance Bank almost doubled following the huge response to initial public offering (IPO). According to broking sources, grey market operators were assigning a premium of 10-15 per cent for the stock, which has now surged to 25-30 per cent. “There are hopes that the stock will do well on listing, as the IPO has created legroom for foreign investment limit,” said a broker. AU Finance’s Rs 1,900-crore IPO, which closed last week, was subscribed around 53 times. 
                                                                                                                        Samie Modak

Investors' gain, BSE’s pain

Investors who managed to get shares of Central Depository Services (India), or CDSL, in its initial public offering (IPO) were rejoicing after the stock saw a huge jump on debut. However, the depository firm’s founder, BSE, might not be as happy, as it parted away with its 26 per cent stake in the company at Rs 149, around 75 per cent lower than the listing price of Rs 261. Interestingly, the exchange had sold 4.15 per cent stake in CDSL in October 2014 at just Rs 79 per share. BSE had to divest its holding to comply with the market regulator's shareholding cap. The solace for BSE, however, is that it continues to hold 24 per cent stake in CDSL, which has caught the fancy of stock market investors.

                                                                                                                             Samie Modak