Street Signs: Likely shift to broader market, PVC pipe firms to gain & more

Action may shift to broader market

After a sustained run, the benchmark Nifty is likely to move sideways and action could shift to the broader market. Last week’s stock price movement gave an early peak into this trend. The Nifty Midcap Index rose 3 per cent, outperforming the benchmark Nifty which rose 1 per cent to finish at 18,696. “We expect some consolidation in the Nifty, and levels near 18,400-18,500 to provide immediate support to the index. Mid-caps could outperform in the weeks to come,” read a note by ICICIdirect.

Piping hot demand to assist PVC pipe makers

Share prices of plastic pipe companies are likely to gain amidst correction in raw material prices and a pick-up in demand. Analysts say pipe companies are likely to benefit from agriculture and plumbing demand. Agriculture demand was subdued for the past three years and is expected to show robust growth in February-May 2023. Plumbing demand is also likely to remain strong, driven by an uptick in the housing market. Prince Pipes and Fittings and Finolex Industries are seen as critical beneficiaries in this space.

Firms switch horses midstream: Pause to press play on ‘pre-file’ 

A few companies on course to file their draft red herring prospectus (DRHP) with the capital markets regulator - the Securities and Exchange Board of India - have hit pause. Investment banking sources say these companies are keen to explore the confidential filing or pre-filing route. “Many issuers like the idea of filing secretly. That way they can avoid public scrutiny until they are absolutely certain about listing. We have seen companies mired in unnecessary litigation after going public with their listing plan,” observes an investment banker. Last week, the rebranded Tata Play became the first company to pre-file its DRHP. This could be the first Tata group firm to come out with an initial public offering since Tata Consultancy Services in 2004.