In the latter half of September 2023, the Indian benchmark indices came close to nullifying the gains made during the initial half of the month, marking the end of their longest winning streak since 2007. This downturn was primarily influenced by weak global cues, concerns about heightened inflation rates, surging crude oil prices, and an elevated 10-year Treasury yield. Additionally, the situation was compounded by foreign institutional investors offloading over ₹25,000 crore in the cash markets. Conversely, in the primary market, a different trend surfaced – one that remained exceptionally robust and vibrant.
It highlighted the unwavering optimism among investors, exemplified by the launch of 14 mainboard IPOs and numerous SME IPOs throughout the month of September. The Indian capital market experienced a noteworthy total of 36 mainboard IPOs throughout 2023, resulting in companies raising over ₹27,000 crore. Impressively, approximately 65 per cent of the funds raised in 2023 were concentrated in the July-September quarter. The majority of these IPOs not only attracted enthusiastic investor interest but also delivered impressive returns, defying the prevailing bearish sentiment.
The rapid listing of IPOs within just three days of issue closure has highlighted a trend among investors who seek to exploit these opportunities promptly. Investors in a rush to seize opportunities for profit frequently depend solely on readily accessible factors, such as the grey market premium (GMP), when making their investment choices. These factors may not consistently support sound decision-making. Such a situation can potentially perplex genuine investors, especially when faced with a multitude of simultaneous IPOs, the majority of which come with enticing GMPs. Let’s explore how financial parameters aid in evaluating IPOs to seize potential investment opportunities.
هذه القصة مأخوذة من طبعة October 23, 2023 من Dalal Street Investment Journal.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة October 23, 2023 من Dalal Street Investment Journal.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
