Street Signs: Bulls in charge but 24,200 holds key, Santar GMP at 40%

Bulls in charge, but can 24,200 break their stride?

The benchmark National Stock Exchange Nifty has now posted gains for six straight weeks, marking its best weekly winning streak since December. As markets trade at new highs, technical analysts are unable to pinpoint any resistance levels on the upside. However, should the Nifty slip below 24,200, things could take a turn for the worse. “Despite the markets appearing overbought by various measures, there are no signs of weakness, and bulls remain in control, supported by sector rotation. For the Nifty, close attention needs to be paid to the 24,200–24,150 zone. A breach of this level could signal initial weakness, potentially testing levels below 24,000 ahead of the Budget,” said Rajesh Bhosale, equity technical analyst at Angel One. The Nifty last closed at 24,502.

Budget clouds darken over stock market intermediaries

Stock market intermediaries, including stock exchanges, broking firms, and depositories, have recently been in the spotlight following the Securities and Exchange Board of India’s decision to pivot to a flat-free fee structure from a slab-wise one, aimed at incentivising high-volume traders. This move is expected to dent their revenues. While their stocks have stabilised somewhat, they are not out of the woods just yet. In the run-up to the Budget, financial intermediaries would be on thin ice as they brace for potential changes in the capital market tax structure, particularly the long-term capital gains tax (LTCG). It is widely expected that the Centre could align the ‘holding period’ definition for LTCG across asset classes to three years from differing time horizons at the moment. Currently, the holding period is 12 months, 24 months, and 36 months for equities and mutual funds, real estate, and unlisted debt securities, respectively.

Sanstar gains 40% grey market thrust ahead of IPO liftoff

Ahead of its initial public offering, shares of Sanstar are trading at a premium of 40 per cent in the grey market. Sanstar, a leading manufacturer of plant-based specialty products and ingredient solutions in India for food, animal nutrition, and industrial applications, has priced its Rs 510 crore maiden share sale at Rs 90-95 per share. Sources indicate that the company’s shares are changing hands in the range of Rs 130–135 per share. This healthy premium comes on the back of encouraging listing day performance by the two companies that listed last week — Emcure Pharmaceuticals and Bansal Wire Industries. Market observers also note that Sanstar’s valuations stack up well against some of its listed peers.