Street Signs: Nifty at a tipping point, Sebi's digital sweep, and more

Nifty at a tipping point: Will it topple or soar?

The markets experienced a roller-coaster ride last week amid a global equities selloff driven by concerns over a potential US recession. After plunging as much as 3.1 per cent to 23,960, the benchmark National Stock Exchange Nifty managed to claw back some gains, ending the week at 24,368. While bulls attempted to regain control on Friday, traders remain uncertain about the market’s direction this week. Nagaraj Shetti, senior technical research analyst at HDFC Securities, notes that the Nifty, which last closed at 24,368, is at a crucial juncture. “A decisive move above 24,450 could propel the Nifty towards the next resistance level of 24,700 in the near term. Meanwhile, immediate support is at 24,100,” he said.

Sebi’s digital sweep: Cleaning up the financial Wild West

The Securities and Exchange Board of India (Sebi) has intensified its crackdown on financial influencers who spread misinformation or violate its guidelines. The regulator has successfully flagged “several thousand” misleading links and content from social media platforms, including YouTube and Meta. More importantly, Sebi has managed to have most of these removed within 24 hours. This swift action aims to prevent further financial losses for investors, as the regulatory process can take up to a year or more. According to a Sebi whole-time member, the platforms are cooperating with the regulator’s requests, demonstrating a commitment to curbing misleading content. This collaborative approach enables Sebi to address violations more efficiently than relying solely on enforcement measures.

Draped in gains: Saraswati Saree Depot’s shares stitch a premium

Shares of Saraswati Saree Depot (SSD) were trading at a premium of over 20 per cent ahead of its mainboard initial public offering (IPO), which opens on Monday. The sari wholesaler’s shares traded at Rs 195, compared to its price band of Rs 152-160 per share. SSD’s IPO includes a Rs 104 crore fresh fundraise and Rs 56 crore in secondary share sales. The company will use the IPO proceeds to fund its working capital requirements. In addition to saris, SSD is engaged in the wholesale of other women’s apparel, such as kurtis, dress materials, blouse pieces, and lehengas. Analysts note that the company’s valuation at 21 times its 2023-24 (FY24) earnings is a discount compared to listed players like Go Fashion India and Sai Silks Kalamandir. In FY24, the company reported a net profit of Rs 39.4 crore on revenues of Rs 611 crore.