Street Signs: Nifty rally regains steam, AMC premium rockets, and more

Nifty regains momentum as technicals turn bullish, IndiGo slides ahead of Sensex entry, and ICICI Prudential AMC IPO heats up on strong grey market demand

Index back in saddle: Rally gains ground 

The Nifty 50 climbed 289 points, or 1.12 per cent, over the past two sessions to close at 26,047, recovering from a 428-point, or 1.64 per cent, decline in the previous three sessions. The bounce has reinforced bullish sentiment among technical analysts, who expect the benchmark to extend its gains. “As long as the Nifty holds above the 25,900–26,000 support zone, the bias stays bullish. Immediate resistance is at 26,300–26,500, and a decisive breakout could push the index towards 26,800–27,000, supported by stable global cues and ample domestic liquidity. A slip below 26,000 may trigger modest profit-taking towards 25,800, but the broader structure stays constructive,” said Ponmudi R, chief executive officer of Enrich Money. Echoing this outlook, Nagaraj Shetti, senior technical research analyst at HDFC Securities, said the underlying trend remains upbeat, with the next upside levels at 26,300–26,400, while immediate support lies at 25,900. 

Shares in a tailspin ahead of index lift-off 

InterGlobe Aviation (IndiGo) shares dropped nearly 10 per cent last week — the steepest fall among Nifty components — amid uncertainty over widespread flight cancellations. The downturn comes just days before the stock’s debut in the BSE Sensex. Following BSE Index Services’ November announcement, IndiGo will replace Tata Motors Passenger Vehicles in the 30-stock blue-chip index this Friday. While the inclusion is expected to generate ₹2,700 crore in passive inflows, it remains uncertain whether this liquidity will arrest the stock’s slide or provide only a temporary lift. Conversely, Tata Motors Passenger Vehicles will likely see passive outflows of around ₹1,700 crore due to its removal. 

AMC premium rockets: Market FOMO peaks 

Shares of ICICI Prudential Asset Management Company (AMC) are trading at an 11 per cent premium in the grey market, up 5 percentage points following strong demand in the anchor book. The initial public offering (IPO) — the fourth largest of the year — was 73 per cent subscribed on Friday, its opening day. ICICI AMC seeks a market capitalisation of ₹1.07 trillion, slightly below HDFC AMC’s ₹1.15 trillion. On a price-to-earnings basis, the IPO is priced at a 10 per cent discount to its rival. Analysts, however, note that ICICI AMC boasts the industry’s highest share of active assets, along with superior revenue, margins, and return on equity. “Given ICICI Pru AMC’s leadership in high-growth segments and strong profitability, the IPO pricing is expected to command a justified premium relative to the peer group average,” observed Deven Choksey Research.