IPO watch: All eyes would be on the listing of Manba Finance, whose Rs 150.84 crore IPO attracted 224.05 times bids recently. The IPO of Diffusion Engineers will conclude today.
Benchmark indices Sensex and Nifty look set to open the week on a cautious note, as suggested by Gift Nifty, thanks to a selloff in Japanese market amid revived fears of rate hikes by Bank of Japan and, thus, yen carry trade. Market participants would also be nervous ahead of the Sebi meet scheduled today, where the market regulator may announce a slew of measures to curb retail participation in the F&O segment, following a recent report that suggested 93 per cent of over 1 crore individual F&O traders incurred average losses of around Rs 2 lakh per trader between FY22 and FY24.
All eyes would be on the listing of Manba Finance, whose Rs 150.84 crore IPO attracted 224.05 times bids recently. The IPO of Diffusion Engineers will conclude today. SME IPOs Nexxus Petro Industries, Forge Auto International, Sahasra Electronics Solutions and Divyadhan Recycling Industries will also close today.
Among global markets, Japan’s Nikkei cracked 4 per cent in early trade as a surprise victory for Shigeru Ishiba in the ruling party’s leadership race raised bets of interest rate hikes, as he earlier advocated for fiscal consolidation. Investors would also keep an eye on peer stock market in China, which are rallying on on hopes of revival in the Chinese economy in response to the monetary and fiscal stimulus announced by the Chinese authorities.
“The cheap valuations of Chinese stocks are keeping the momentum intact. This can prove to be a tactical trade which can sustain for some more time. This means FIIs may continue to sell in India and move some more money to better performing markets. FII selling is unlikely to impact the Indian market significantly since the massive domestic money can easily absorb whatever the FIIs are selling. Investors can use dips to buy quality largecaps which are fairly valued,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
At home, a report by Mint suggested SEBI may implement all the seven recommendations by Padmanabhan Committee at its board meeting today. Sebi recently floated fresh consultation papers on futures and options (F&O), which suggested seven proposals to tame retail speculation in derivatives. These include collection of option premiums on an upfront basis, revision in minimum contract size, rationalisation of weekly index products, intraday monitoring of position limits, rationalisation of strike prices, removal of calendar spread benefit on expiry day and increase in near contract expiry margin, among others.
If implemented fully, they are seen hitting the stock market volumes by about 30-40 per cent and earnings of domestic stock exchanges by 15-30 per cent. The steps are also seen hurting discount brokers, which tasted strong success in the last couple of years.
BSE and NSE have already announced a revision to their transaction charges, effective October 1. The changes, disclosed on Friday, would result in an increase in fees for select segments.
In the case of NSE, a charge of Rs 2.97 per lakh of trade value will be applied on both sides in the cash segment. In equity futures, the rate will be Rs 1.73 per lakh, while equity options will see a fee of Rs 35.03 per lakh of premium value, applicable on both sides.
On the BSE, transaction charges for Sensex and Bankex options contracts will rise to Rs 3,250 per crore of premium turnover. However, charges for other equity derivatives, including Sensex Fifty and stock options, remain unchanged at Rs 500 per crore of premium turnover.
Gift Nifty was trading 31.50 points, or 0.12 per cent, higher at 26,321, hinting at a flat start for the day.
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