Street signs: IPOs brave uncertainty & premiums muted, Nifty nears support

IPOs brave volatility, premiums muted 

The recent rout in equity markets has disrupted initial public offering (IPO) plans, delaying some large issues and forcing one company to extend its subscription period by three days amid volatile conditions. 

Even so, the primary market has shown resilience, with eight companies hitting the market — making it the busiest March for IPOs since 2021. Three issues — Powerica, Amir Chand Jagdish Kumar (Exports) and Sai Parenterals — are set to launch this week. The IPO of Coal India’s subsidiary, Central Mine Planning & Design Institute, which opened on Friday, will also close this week. Together, these four issues aim to raise ₹3,791 crore. 

Grey market premiums, however, remain subdued, with one issue quoting at zero and the rest in the 1-3 per cent range. 

A market participant said some issues were nearing the expiry of their Sebi approvals, with financials updated only until September 2025, leaving little room to delay. “If they missed the deadline, they would have had to update their documents. And as far as grey market premiums are concerned, a strange phenomenon has occurred lately: a premium floats around as long as the issue is open, but once the issue shuts, the premium vanishes,” the person added. 

Crude volatility keeps markets on edge

  Benchmark indices Sensex and Nifty rose in four of the five sessions last week, but a sharp sell-off on Thursday — the worst since June 2024 — dragged them into losses for the fourth consecutive week.

 

Brent crude volatility remains a key overhang, with price spikes triggering corrections. Price action since the onset of the conflict has been telling, with every pullback sold into, reflecting weak buying conviction. Elevated energy prices are likely to continue weighing on equities.

 

“Going ahead, the 22,850 - 22,800 zone will act as immediate support for Nifty. A sustained breach below this level could accelerate the decline towards 22,500. On the upside, the 23,420 - 23,460 zone is likely to act as stiff resistance, with any pullback expected to face selling pressure in this band,” said Sudeep Shah, vice-president and head of technical and derivative research at SBI Securities.

 

DIIs hold the line amid FPI outflows 

Amid continued foreign outflows, exacerbated by the West Asia conflict, domestic institutional investor (DII) flows have remained resilient — at least in the first fortnight of March.

 

As of March 13, DIIs had invested ₹70,527 crore, taking cumulative inflows in FY26 to ₹7.8 trillion, according to the NSE Market Pulse report.

 

The report noted that the pickup in domestic inflows coincided with renewed foreign portfolio outflows in March, underscoring the role of local investors in absorbing selling pressure during periods of external volatility.

 

DIIs also extended their buying streak in February to 31 consecutive months, though inflows were the lowest since April 2025.