Street signs: A new charge to break resistance, Sebi casts the net, more

Bulls at the gate: A new charge to break resistance

Strong gains posted on Friday have shifted momentum back in favour of the bulls. The benchmark National Stock Exchange Nifty 50 ended at 24,541, up 1.6 per cent — its best single-day gain since July 26. Although it remains 537 points (2.2 per cent) shy of its record high, the index is poised for further upside. Its ability to reach new heights depends on overcoming near-term resistance. According to Rajesh Bhosale, equity technical analyst at Angel One, “In the upcoming sessions, we may see the Nifty testing levels of 24,700 and 24,850, which serve as immediate hurdles. If global markets remain supportive, we might even retest the 25,000 mark. However, if the Nifty breaches 24,200, it may decline to 24,000 and 23,900 levels.”

Sebi casts the net: Clearing corps snagged by interest mandate

Market regulator Securities and Exchange Board of India (Sebi) has proposed mandating that clearing corporations periodically pass on the interest income earned on cash collaterals to brokers. Since clearing corporations are fully owned by exchanges, the proposal — expected to be approved by the Sebi board soon — will impact the bottom line of the bourses. Analysts say it remains to be seen whether clearing corporations will have to pass on the entire interest income or just the interest on idle funds — those without an underlying position. “If, on average, 15 per cent of the clearing funds are idle, the estimated impact on 2023-24 earnings per share for BSE and Multi Commodity Exchange (MCX) of India is 3.3 per cent and 1.4 per cent, respectively. The maximum impact will be 6.6 per cent and 2.8 per cent for BSE and MCX if we assume 30 per cent of the funds are idle,” according to a note by HDFC Securities.

IPO Street on turbo: New listings drive next big wave

IPO Street is set for another exciting week following a blockbuster last week. Two new initial public offerings will hit the market: Interarch Building Products (size Rs 600 crore) and Orient Technologies (Rs 215 crore). Meanwhile, Saraswati Saree Depot, which saw a remarkable 107x subscription, will list on Tuesday, expected to debut with a 26 per cent premium. In the grey market, Interarch — one of the leading turnkey pre-engineered steel construction solution providers in India — is commanding a 34 per cent premium, while Orient, an information technology solutions provider, has yet to gain traction. Building on the momentum, the last three listings — Unicommerce eSolutions, Ola Electric, and FirstCry (all backed by SoftBank) — have been rewarding for investors, with the first two (integrated e-commerce enablement company and two-wheeler manufacturer) currently trading 75 per cent above their issue price and the baby products retailer gaining 44 per cent.