Street signs: Tale of two benchmarks, grey mkt cheer TCNS issue, and more

Tale of two benchmarks
 
The S&P BSE Sensex has climbed to a new all-time high, while the Nifty 50, more popular among traders, is still a percentage point away. This is on the account of a 270 basis point difference in the year-to-date performance between the two indices. The Sensex is up 7.3 per cent, while Nifty has gained only 4.6 per cent so far in 2018. While most of the components of both benchmark indices are common, Sensex has only 30 stocks, while Nifty is more broad-based with 50 components. Having a narrower focus has clearly helped the Sensex. This year the broader market has been under pain while select index heavyweights such as Reliance Industries, Infosys, TCS and HDFC Bank have led to the exuberance. This is in sharp contrast to last year when the entire market saw secular gains.

Samie Modak

 

Investors see green in Suven’s patents
 
Things seem to be turning around for many companies in the pharmaceutical sector. Recently, Suven Life Sciences, a pharmaceutical company, which is in drug discovery and its commercialisation, has found takers in the stock market in the past month after it received product patents in the US, China and other countries. Market players are betting on the stock as a long-term play. The stock has gone up nearly 14 per cent from May.
 

Joydeep Ghosh

 

Grey market cheer TCNS issue 
 
Grey market operators are giving thumbs up to the Rs 11-billion initial public offer (IPO) of TCNS Clothing, the operator of popular women’s wear brand W. Shares of the company are changing hands at a premium between 30 per cent and 40 per cent in the unofficial market ahead of its three-day IPO, which opens July 18. According to analysts, the IPO is priced attractively vis à vis Page Industries, which sells Jockey branded innerwear. “TCNS has posted strong revenue growth since 2012-13. It is well-positioned to tap the growth in the contemporary women’s wear segment,” said an analyst.
 

Samie Modak