Street signs: SAT awaits presiding officer, Nifty showing signs of fatigue

SAT awaits new presiding officer

The Securities and Appellate Tribunal (SAT) is waiting for the appointment of a new judicial member as presiding officer (PO). Justice Tarun Agarwala, who was appointed to the SAT in December 2018, bid farewell last week. In August 2023, the Ministry of Finance invited applications for filling up the position of PO. During his tenure, Justice Agarwala delivered crucial orders on NSE colocation matters, Karvy Stockbroking, and several other corporations. However, several other appeals from big firms are pending before the tribunal. The SAT is a statutory body which hears and disposes of appeals against the orders of the Securities and Exchange Board of India, the Insurance Regulatory Development Authority of India, and the Pension Fund Regulatory and Development Authority. The SAT only has one Bench in Mumbai. For the position of PO, the person must have been a judge in the Supreme Court or a chief justice at a high court.

Filing of IPO papers picked up pace in December

There was an uptick in the filing of draft red herring prospectus (DRHPs) in December amid market buoyancy. In December, 10 firms filed their offer documents with the markets regulator against two in November. Those that filed their DRHP include Ola Electric, Brainbees Solutions, Emcure Pharmaceuticals, and Gretex Share Broking. The stellar returns in the midcap and smallcap space and the returns by the newly listed stocks last year are giving IPO-bound firms the confidence to try their luck. Compared to the Nifty’s 20 per cent gain in 2023, the Nifty Midcap 100 and Nifty Smallcap 100 rose by 46.6 per cent and 55.6 per cent, respectively. The average listing-day gain for the 59 IPOs last was 26.3 per cent. “It’s good to have new papers coming in when the flows are strong, the index has peaked, and valuations are rich across sectors. There is strong demand from investors, especially domestic investors, for good quality companies,” said a banker.

Nifty showing signs of fatigue

After posting double-digit returns last year, Nifty stocks are showing signs of fatigue. Analysts said the upward momentum may continue, but there are enough signs of a need for consolidation. The index stocks and largecaps will need continued support from foreign portfolio investors to sustain the momentum. “The day-on-day gains in index stocks are slowing, and we are 

seeing a decline day in between. Moreover, a bit of sector rotation is happening. The resistance next week could come from the 21,505 levels, while 21,801 could offer support,” said Deepak Jasani, head of retail research of HDFC Securities.