Street signs: Nifty's sprint to glory, the IPO juggernaut rolls on, more

Nifty’s sprint to glory: Aiming to cross the 25,000 finish line

After a two-week slump, the benchmark National Stock Exchange Nifty has posted gains for two consecutive weeks, buoyed by positive global signals. On Friday, it closed at 24,823.15, up 1.2 per cent from the previous week’s close. This rally has been coupled with a significant drop in the India Vix, from 23 to 13.6, reflecting decreased market volatility — a favourable sign. Market participants are hopeful that the Nifty will soon reclaim the 25,000 mark, especially given the US Federal Reserve’s hints at a potential rate-cut cycle. The index is just 255 points away from its record high of 25,078, set on August 1. According to Nagaraj Shetti, senior technical research analyst at HDFC Securities, “The Nifty’s underlying trend remains choppy but with a positive bias. A further upmove could push the index towards 25,000-25,100, with immediate support at 24,650.”

Market detox: Record block deals unclog trade overhang artery

The domestic market experienced a surge of block deals exceeding Rs 25,000 crore last week, as promoters and strategic investors capitalised on market optimism to divest their holdings. These trades not only attracted buyers but also boosted the shares of the underlying companies, as investors welcomed the alleviation of the share-sale overhang. A ‘clean-out trade’ happens when a large investor sells their entire stake. Recent examples include PNB Housing (General Atlantic), Kalyan Jewellers (Warburg Pincus), Eris Lifesciences (Emerald Investments), and Tata Technologies (Alpha TC Holdings). Major trades also involved Zomato (Ant Group), Ambuja Cements (Adani family), and Cyient DLM (Cyient). In most cases, stock prices surged following the completion of these block trades. This year, block-deal activity in India has already reached a record high, approaching $20 billion.

The IPO juggernaut rolls on: Listings shift into warp speed

The primary market is set for further acceleration, driven by the recent success of initial public offerings (IPOs). Market sources reveal that Bajaj Housing Finance, Baazar Style Retail (backed by Rekha Jhunjhunwala), Gala Precision Engineering, and Northern Arc Capital are preparing to announce their IPO plans soon. Meanwhile, Interarch Building Products and Orient Technologies will debut this week, following impressive subscription numbers — 94 times for Interarch and 155 times for Orient. Additionally, two new IPOs are opening for subscription: Premier Energies’ Rs 2,830 crore issue and ECO Mobility’s Rs 601 crore issue. Premier Energies is already commanding a substantial grey market premium of 68 per cent.