Street signs: Sensex, Nifty surge; Emcure IPO; Manufacturing funds gamble

Market steamrolls ahead: Sensex, Nifty surge towards record peaks

The benchmark S&P BSE Sensex and National Stock Exchange Nifty indices continued their upward trajectory, surging over 2 per cent last week and extending their gains from election result day lows to nearly 13 per cent. Technical analysts predict further momentum, potentially driving the Sensex to 79,800 and the Nifty to 24,300. The indices closed on Friday at 79,033 and 24,011, respectively. According to Amol Athawale, vice-president of technical research at Kotak Securities, “the weekly charts show a long bullish candle and the daily charts indicate a breakout continuation formation, suggesting a further uptrend. While the short-term market outlook is bullish, overbought conditions may lead to profit booking at higher levels”. However, he added that a dip below 78,700 (Sensex) and 23,900 (Nifty) could negatively impact sentiment.

Emcure IPO launch: Shares rocket with 25% premium blastoff

Emcure Pharmaceuticals’ shares are commanding a premium of over 25 per cent above their price band. The Pune-based generic drugmaker has set a price band of Rs 960–1,008 per share for its Rs 1,952 crore initial public offering (IPO), the fourth-largest this calendar year. Industry players reported Emcure’s shares were trading between Rs 1,250 and Rs 1,300 in the unofficial market active before the IPO. At the top end of the price band, Emcure is valued at around Rs 19,000 crore on a post-dilution basis. For the financial year ended 2023–24, the company clocked a net profit of Rs 527 crore on revenue of Rs 6,715 crore.

Investing with grit: Fund chief's bold manufacturing gamble

Money managers often boast about investing in their funds to demonstrate confidence and show they have ‘skin in the game’. However, one mutual fund head is putting in more than just his money on a theme he is bullish on. Speaking to journalists recently, he expressed optimism for India’s future in manufacturing, noting that his son is likely to pursue a career in mechanical engineering, a field that has seen declining interest over the years due to a lack of jobs. The executive is confident of a turnaround as manufacturing gains momentum. It remains to be seen how manufacturing and infrastructure stocks perform in the long run; however, over the past year, several schemes in this category have delivered returns exceeding 80 per cent.