Street signs: Laxmi Dental GMP at 37%, market mood rides the seesaw

Muni bonds: The sleeping giant ready to awaken?

 

While the Securities and Exchange Board of India chairperson has expressed optimism about municipal (muni) bonds, alongside other instruments like real estate investment trusts and infrastructure investment trusts, this fundraising avenue has yet to have its day in the sun. According to data from the market regulator, nearly 11 muni corporations raised around Rs 2,684 crore until the last financial year (2023-24). However, sources indicate that six to seven new muni corporations are now considering this route to raise funds. Nearly half a dozen are expected to file for muni bonds by March-April this year. An official previously mentioned that the regulator has been engaging with multiple corporations to explore muni bonds.

 

Laxmi Dental IPO: A 37% smile that investors cannot ignore

 

The grey market premium (GMP) for OrbiMed-backed Laxmi Dental, whose initial public offering (IPO) opens for subscription on Monday, stands at 37 per cent above its issue price. The Rs 698 crore IPO includes a fresh issue of Rs 138 crore and an offer for sale of Rs 560 crore. The company allotted shares worth Rs 314 crore to anchor investors. The fresh issue portion will be used to repay debt and fund the capital expenditure needs of the company and its subsidiary. Laxmi Dental’s product range includes crowns and bridges, clear aligners, thermoforming sheets, and paediatric dental products.

 

Market mood rides the seesaw: Up, down, or sideways?

 

Markets may not see big movements this week, but overall investor sentiment is expected to remain sombre. Indian equity benchmarks ended the previous week with losses, partly due to selling by foreign portfolio investors (FPIs). Sensex and Nifty dropped by 2.4 per cent and 2.3 per cent, respectively, as FPIs offloaded shares worth Rs 17,289 crore. Quarterly earnings reports from major companies, concerns over potential policy shifts, and new jobs data from the US — which has led to reduced expectations for Federal Reserve interest rate cuts — are likely to weigh on investor sentiment. “Given the losses in the US market, the first half of the week is expected to be challenging. However, we’re approaching an oversold condition, so a bounce may occur by Wednesday. By then, more earnings results will be available, and much will depend on their outcomes. On the upside, 23,600 is the resistance level for Nifty, and 23,100 could serve as the key support level. Large moves are unlikely, but the overall bias remains weak,” said Deepak Jasani, former head of retail research at HDFC Securities.