Street signs: Investors cash out of Bharat-22 ETF

Investors in the new fund offer (NFO) of Bharat-22 ETF (exchange-traded fund) seem to be cashing out post listing. Units worth Rs 14,500 crore were allotted in the NFO, which closed on November 17. However, as on November 30, the scheme’s assets had reduced by 18.3 per cent to Rs 11,852 crore, data filings show. Market experts say investors could have sold the units to pocket listing gains. The Centre had offered a discount of three per cent in the NFO. Bharat-22 is the second ETF from the government, after the CPSE ETF, which too has seen its assets halve to Rs 5,095 crore from Rs 11,500 crore worth of units issued through three tranches. 

Samie Modak

Big rally in the offing?

The Street seems to be anticipating a big jump in the market after the announcement of the Gujarat election results. According to the derivatives data, the Nifty contracts recorded a maximum open interest at 10,500 points followed by 10,400 and 10,900. In other words, traders are hopeful the benchmark Nifty index could end above 10,500 or even 10,900 by the end of the December series. On Friday, the index closed at 10,333. “It is likely that the Nifty could gain another two to three per cent if the outcome is favourable. However, a five per cent kind of jump in the near-term looks unlikely,” said a broker.

Pavan Burugula

First Chinese investment in Indian IPO 

China-based institutional investors are known to be risk-averse when it comes to making portfolio investments in foreign assets. Not surprising then, there are hardly any Chinese institutional investors putting in money in the domestic stock markets. For the first time, a domestic initial public offering (IPO) saw participation from a China-based institutional investor, said investment banking sources. The investors routed the investment through participatory notes (p-notes). Surprisingly, the IPO was that of Anil Ambani-led Reliance Nippon Life Asset Management.

Samie Modak