Street Signs: Nifty 50's downward spiral, IPOs mending the fray, and more

GQG Partners a new strand in India’s investment fabric

 

GQG Partners has ascended to become the sixth-largest foreign portfolio investor (FPI) in India. According to PRIME Database, the US-based boutique investment firm holds stakes in 13 companies (with at least a 1 per cent stake), and its investments are valued at Rs 46,050 crore as of the end of September. Leading the FPI rankings are the sovereign wealth funds of Singapore (GIC) and Norway (Norges). GIC holds stakes worth Rs 2.7 trillion across 685 companies, while Norges has invested in 95 companies, with the combined value of its holdings at Rs 1.42 trillion. GQG Partners’ rise is largely attributed to its strategic bets on Adani group stocks, which have made its emerging markets equity fund particularly popular among US investors seeking exposure to the Indian market.

 

Nifty 50’s downward spiral: A weak link in the chain

 

The benchmark National Stock Exchange Nifty 50 Index has closed in the red in five out of the last six weeks, marking an 8 per cent decline from its record high. Historically, such sharp downturns have been seen as buying opportunities. However, experts are cautioning against bottom-fishing, as the trend remains weak. “The short-term trend for Nifty continues to be choppy, with consolidation likely to continue in the near term and a weak bias. The next lower support levels to watch are around 23,800, with immediate resistance at 24,537,” said Deepak Jasani, head of retail research at HDFC Securities. The Nifty index closed at 24,148.

 

IPOs mending the fray, tailoring to market shifts

 

The recent selloff in the secondary market and disappointing initial public offering (IPO) listings have prompted companies planning IPOs to reassess their strategies. Industry insiders reveal that both issuers and investment bankers are revising IPO structures to better adapt to changing market dynamics. To improve listing prospects, potential solutions include reducing secondary components and lowering valuations. One example is Niva Bupa Health Insurance Company, which reduced its IPO size from Rs 3,000 crore to Rs 2,200 crore by cutting the offer-for-sale component. Sources suggest that more companies may follow suit amid these turbulent market conditions.