Street Signs: Street buckles up for turbulence, Yatharth GMP at 25% & more

Street buckles up for fresh turbulence

Domestic equities could witness fresh turbulence as the Street weighs up earnings announcements by blue-chip firms such as Reliance Industries (RIL), ICICI Bank, and Kotak Mahindra Bank. “RIL’s earnings were not up to the mark, but not disastrous either. Another round of corrections on Monday cannot be ruled out. Well, markets have become expensive and are looking for a reason to correct,” observes Ambareesh Baliga, an independent market analyst. The National Stock Exchange Nifty finished last week at 19,745, down 234 points, or 1.2 per cent — the most in four months. Technical analysts say a key support level for the Nifty is around 19,700, and a breach of this level may lead to a substantial correction.

 

Freak trade or technical issue?

The Morgan Stanley Capital International (MSCI) India Index witnessed a sharp drop of over 9 per cent on Friday, stunning exchange-traded funds and other index trackers. The steep fall came regardless of the benchmark S&P BSE Sensex and the National Stock Exchange Nifty indices dropping just 1.5 per cent. While MSCI India’s value was soon corrected, it left market players guessing if the sudden drop in the index was due to a freak trade or a technical issue. Some analysts said the fall could be due to the adjustment in the price of Reliance Industries, which, a day earlier, spun off its financial services unit. A few others suspected freak trades amid weakness in information technology stocks. An official query was sent to MSCI on the issue.

IPO booster shot for

 

Yatharth: GMP at 25%

The grey market premium (GMP) for Yatharth Hospital and Trauma Care Services is hovering around 25 per cent ahead of its initial public offering (IPO). The Noida-based multi-care hospital chain’s Rs 687 crore IPO opens on Wednesday and closes on Friday. The price band for the IPO is Rs 285–300 per share. Yatharth is looking to raise Rs 490 crore in fresh capital, which will be used to retire debt and fund expansion. At the top end, the hospital chain will be valued at Rs 2,576 crore. For the year ended March 2023, the company reported a net profit of Rs 66 crore on revenues of Rs 520 crore.