Street signs: Ujjivan SFB commands hefty premium, F&O trend, and more

Ujjivan SFB commands hefty premium

Shares of Ujjivan Small Finance Bank (Ujjivan SFB) are changing hands at a premium of as much as 50 per cent over the initial public offering (IPO) price in the grey market, said market operators. Activity at the counter had picked up even before the price band of Rs 36-37 for its IPO was announced. On Friday, the anchor investor portion had witnessed huge demand. Market players expect the shares to do well post listing because of high institutional interest. The pre-IPO funding drive of the SFB arm of Ujjivan Financial Services to raise Rs 250 crore, too, had met with good demand. “Listing of the SFB is an interesting theme that investors are eyeing,” said an analyst.

F&O trend suggests more upside  

The markets may have corrected on Friday ahead of weak GDP numbers, but experts tracking the derivatives (futures & options) market believe that there is steam left in the rally. They say the long-short ratio for index futures has turned favourable. “We remain optimistic for the December series and expect this up-move to continue. As far as levels are concerned, 11,900-12,000 is the immediate support zone for the Nifty and any dip around these levels should be used as a buying opportunity. On the higher side, we expect a continuation of the ongoing rally towards 12,400-12,500 levels,” says Sneha Seth, derivatives analyst, Angel Broking.

Top up woes for money managers

The Securities and Exchange Board of India's (Sebi’s) decision to double the minimum investment size to Rs 50 lakh for the portfolio management services (PMS) industry is seen as a positive because it is likely to boost assets. However, service providers are bracing for turbulence when it comes to dealing with existing investors. The minimum ticket size will remain Rs 25 lakh for existing investments. However, if any existing investor decides to make fresh investments, the new threshold kicks in. “A lot of PMS investors make small investments every month akin to systematic investment plans of mutual funds. But, this may halt now as investors may be reluctant to make a higher top up,” said an industry player. This could even impact broader market liquidity.