Street Signs: Nifty's pause before glory, MTR Foods GMP at 20%, and more

Nifty stalls near record highs, Orkla India IPO heats up the grey market, and holdcos gear up for a special auction session aimed at unlocking long-trapped value

Nifty catches its breath at the summit 

The Nifty 50 index, having rallied over 1,500 points (nearly 6 per cent), has paused just short of last year’s record highs, hovering less than 1.5 per cent below them. Analysts suggest the market is in an overbought phase, indicating a period of short-term consolidation. “We expect the index to trade in the 25,600–26,100 range to ease overbought conditions. A sustained move above 26,100 could pave the way for an advance towards 26,500 in the coming weeks. On the downside, the 25,500–25,700 band is likely to act as strong support, and any decline towards this zone can be viewed as a buying opportunity,” Bajaj Broking Research observed in a note. The Nifty last closed at 25,795. 

Grey market smells profit in Orkla’s kitchen 

Shares of Orkla India, a multi-category food company, are commanding a grey market premium of over 20 per cent ahead of its ₹1,668 crore initial public offering (IPO), which opens for subscription on Wednesday. Analysts credit the enthusiasm to the company’s strong brand portfolio and promising growth prospects. The IPO, an offer for sale, will value Orkla India at roughly ₹10,000 crore. In 2024-25, the company clocked a net profit of ₹256 crore on revenues of ₹2,395 crore. Its brands, including MTR Foods and Eastern Condiments, cover a diverse range of spices and ready-to-cook products, catering to meals from breakfast and snacks to beverages and desserts. 

Holdcos ready to open treasure chest 

Nine investment holding companies (holdcos) — including Welspun Investments and Commercials, SIL Investments, TVS Holdings (formerly Sundaram Clayton), and Pilani Investment and Industries Corporation — will participate in a special call auction session on October 29 for price discovery. The previous session, held in October 2024, was the first after the Securities and Exchange Board of India established a framework for such stocks. Investment holdcos do not have standalone operations; they primarily hold stakes in other companies, often within their own corporate groups. These dedicated call auctions are designed to reduce the steep valuation discounts at which most holdcos trade. Other firms eligible for the upcoming session include GFL, Kalyani Investment Company, Maharashtra Scooters, Nalwa Sons Investments, and Vardhman Holdings. Market watchers will be keen to see which firms unlock genuine value.