 "BSE")
Market on knife’s edge: A single cut could deepen the correction
After an eight-session losing streak, the Nifty 50 is teetering near crucial support levels. A breakdown may drive the current correction down by 2-3 per cent. The 50-share index closed at 22,929 on Friday. Nagaraj Shetti, senior technical research analyst at HDFC Securities, said, “A decisive drop below 22,800 could lead to a further decline to the 22,450 level in the near term. Immediate resistance is at 23,250.” Jatin Gedia, technical research analyst at Mirae Asset Sharekhan, added, “We expect the Nifty to persist in its decline and reach the 22,670-22,600 level next week. Resistance lies between 23,000 and 23,100.” A close below 22,829 would bring the Nifty to levels not observed since June 2004.
Bear crossing ahead: IPOs on brink of a market mauling
Two companies planning to announce their initial public offering (IPO) plans last week have postponed them due to the ongoing selloff in the secondary markets. The recent market instability has made it harder for companies to attract investors, despite some reducing their issue sizes. Hexaware Technologies, which wrapped up its IPO on Friday, succeeded with backing from institutional investors. Other companies, however, are waiting for a more favourable market window. “It’s becoming more challenging to attract investors at current valuations,” said a banker. “While cutting issue sizes can help, there’s a limit to how much you can scale down — beyond 20 per cent, you have to refile your draft red herring prospectus. Companies are now waiting for the optimal window to launch their IPOs.”
SIP storm approaching: MFs race to keep investors onboard
As the market downturn threatens to erode investor discipline, the domestic mutual fund (MF) industry is stepping up efforts to persuade systematic investment plan (SIP) investors to stay the course. Industry participants are ramping up outreach initiatives, leveraging social media to emphasise the importance of maintaining SIP investments amid market turbulence. They are also underscoring the critical role SIPs play in long-term wealth creation. “Market volatility can shake us out of our discipline and long-term plans,” warned Kalpen Parekh, managing director and chief executive officer of DSP MF, on the social network X. “It takes just two buttons to stop an SIP, but a lifetime to build wealth.” This push comes as SIP account closures increase and one-year returns for SIP investors turn negative. January marked the sixth consecutive month of net declines in new SIP account additions, highlighting the need for investor reassurance.
