Street Sign: Nifty nudges down, Gold's Act III, Innova Captab IPO & more

Foreign portfolio investors are likely to slow down their purchases. Foreign investors were heavy sellers in the last two sessions of the week, although they were net buyers worth Rs 44,740 cr in Dec

Nifty nudges down:Calm before storm?

The National Stock Exchange Nifty declined last week after posting gains for the preceding seven weeks. Returns this week could be muted due to a lack of triggers. Foreign portfolio investors are likely to slow down their purchases. Foreign investors were heavy sellers in the last two sessions of the week, although they were net buyers worth Rs 44,740 crore in December. Analysts said markets are likely to move sideways unless there is a significant purchase from domestic situations or any newsflow that may nudge investors to take some money off the table.

“The Nifty may witness a sell-on-rise pattern for the next few days. The resistance early next week could come from the 21,600 levels, while 20,969 could offer support. Broader markets may post gains, but on days when benchmark indices come under selling pressure, the broader markets will see some profit-taking,” said Deepak Jasani, head of retail research at HDFC Securities.

Gold’s Act III: Signs point to bull run

Various indicators linked to gold prices show similar signs to those seen in the previous two major bull runs in gold since 1970. In its outlook for the yellow metal, Kotak Mutual Fund said declining production, a gold-to-S&P 500 ratio near all-time lows, and central banks accumulating gold are some commonalities between now and the start of the previous two cycles (1971 and 2000).

In its outlook, the World Gold Council said the trajectory of gold prices in 2024 will largely depend on the state of economies — whether they make a ‘soft landing’ or plunge into a recession. The latter will be positive for gold prices.

Innova Captab IPO: Modest dose of market enthusiasm

The grey market premium (GMP) of Innova Captab, concluding on Tuesday, is relatively modest at 35 per cent. GMPs were mostly positive for the issues that closed last week, with some commanding a GMP above 80 per cent. All seven initial public offerings (IPOs) that closed last week had huge oversubscriptions, and the issue of Motisons Jewellers was subscribed to 173 times. Innova Capital has priced its IPO between Rs 426 and Rs 448 per share.

The Rs 570 crore IPO has a fresh issue component of Rs 320 crore and an offer for sale of Rs 250 crore. Innova Captab is a pharmaceutical company that plans to utilise the proceeds of the fresh issue to repay its debts and fund its working capital requirements.