Street signs: Nifty to see sell-on-rise pattern, Jyoti CNC GMP at 23%, more

Nifty50 may see sell-on-rise pattern
 

The benchmark Nifty50 is expected to witness selling pressure this week. Analysts said some nervousness is expected amid the announcements of December quarter results, set to begin this week. Moreover, global cues are turning unfavourable against the backdrop of tensions in the Red Sea and strong macroeconomic data in the US blurring the expectations of rate cuts by March. “Last week, the Nifty50 was unable to make new highs. 
 

And ‘sell on the rise’ may continue in largecaps. The broader markets will continue to do well. The support level for the Nifty50 will be at 21,500 and 21,350, and the resistance will come at 21,800,” said Deepak Jasani, head of retail research of HDFC Securities.
 

Jyoti CNC GMP at 23 per cent
 

The grey market premium (GMP) of Jyoti CNC, whose initial public offering (IPO) is opening on Tuesday, is at 23 per cent above its issue price. The company has priced its IPO between Rs 315 and Rs 331 per share. The IPO is a fresh issue of Rs 1,000 crore. Jyoti CNC plans to utilise the proceeds of the IPO to repay its debts and fund its working capital requirements. The company manufactures metal-cutting computer numerical control (CNC) machines. Jyoti CNC will be the first IPO of 2024. In 2023, 57 companies raised Rs 49,434 crore through IPOs.
 

International funds: High on returns, low on flows in 2023
 

International funds, mostly those investing in US equities, had a bumper 2023 in terms of returns but failed to garner fresh flows. In the January-November period, investors pulled out net Rs 2,016 crore from overseas funds. However, things may finally be turning around. Mirae Asset MF, whose NYSE FANG+ ETF delivered a 96 per cent return in 2023, has stopped taking fresh flows into most of its international offerings in "order to avoid breach" of its international investing limit. With the MF industry almost finishing off its $7 billion international investment limit in early 2022, it has since been allowed to take fresh inflows only when redemptions create fresh headroom for investments. Almost all international funds were opened for subscription in 2023 after a few months of outflows.