Street signs: Regulatory changes may impact BSE revenue, say analysts

About 90% of 331 companies are facing the heat of regulator

Analysts are predicting an unexpected headwind for the BSE, India's oldest stock exchange, in the form of so-called Graded Surveillance Measures (GSM) and compulsory delisting — both actions initiated by the market regulator Securities and Exchange Board of India. About 90 per cent of the 331 companies facing the heat of regulator and the government are exclusively listed on the BSE. They say, the revenue of the BSE could see some impact due to the move in the next two quarters. "There is a risk of additional impact in future coming from potential delisting of stocks, which could impact a portion of the listing fees for the BSE," said US-brokerage Jefferies in a recent report.

Pavan Burugula  

 

 

Dixon Technologies quoting at 25% premium in grey market 

Shares of Dixon Technologies, which recently came out with an initial public offering (IPO), are quoting at a premium of 20-25 per cent in the grey market,  compared to the issue price. Investors are willing to pay nearly Rs 400 above the issue price band of Rs 1,760-1,766, fixed by the company. However, the premium for Bharat Road Network, another IPO that will hit the market this week, is only 10 per cent above its price band of Rs 195-205. “Dixon is a technology provider, the sector has a lot of potential. However, investors are still sceptical about the infrastructure sector that Bharat Roads is into, that's why we are seeing a lower premium,” said a banker.

Pavan Burugula

Bank Nifty loses steam

After gains in seven consecutive futures & options series, the Bank Nifty futures ended in the negative in August, sliding 2.5 per cent over the closing of July series. Most of the long positions were unwound, which analysts believe is a sign of concern, as the past few series had seen a sustained built-up of long positions. The going may be tough, especially for public sector banks such as Bank of Baroda, State Bank of India and Canara Bank, which have seen a significant built-up short positions in their counters. On the upside, the Bank Nifty might face resistance at 24,500-24,750. The downside level for the index is pegged at 23,800. Any fall below 23,800 might see the index slipping to 23,000 levels, reckon analysts.

Ashley Coutinho