IREDA IPO: GMP, what are the subscription status signals? Allotment Date, How to Check Status

The Indian Renewable Energy Development Authority (IREDA) IPO concluded its subscription period on Thursday, receiving robust interest from investors. The overall subscription status stood at 38.80 times, with the retail portion being subscribed 7.73 times. The tentative allotment date for the IREDA IPO is expected to be November 28, 2023, with the likely listing date set for November 29, 2023.

In the gray market, which operates as an informal trading platform, the premium for IREDA Ltd shares has risen to ₹13, reflecting the heightened interest in the public offering. Market observers noted a significant increase in the gray market premium (GMP) from ₹7 to ₹13 over the past week, underscoring the buzz surrounding the IREDA IPO in the primary market. Despite recent market fluctuations, the gray market has remained bullish, and analysts anticipate further upside if there is a reversal in the market trend when the Indian stock market reopens on Tuesday after the Monday holiday.

While the GMP serves as an indicator of market sentiment, experts caution that it does not necessarily determine the success or failure of an IPO. They emphasize the importance of considering fundamental factors and evaluating the company's balance sheet. It's noted that the gray market is speculative and unregulated, lacking a direct connection to the company's financials.

During the three-day bidding period from November 21 to November 23, 2023, the IREDA IPO garnered substantial interest across investor categories. Qualified Institutional Buyers (QIBs) led with a subscription of 104.57 times, followed by the non-institutional investor (NII) segment at 24.16 times, and the employee segment at 9.80 times.

Upon the announcement of share allotment, investors can check the IREDA IPO allotment status online through the BSE website or the official registrar's website, Link Intime Private Limited. The BSE direct link for checking allotment status is bseindia.com/investors/appli_check.aspx, and for Link Intime, investors can use the link linkintime.co.in/mipo/ipoallotment.html. The status can be accessed by entering the IREDA IPO application number and PAN details.

IREDA IPO GMP

Market remains flat for the second week; rupee falls, FII selling continue

During the past week, the market remained relatively stable, showing minimal fluctuations for the second consecutive week. The rupee witnessed a depreciation, and foreign institutional investor (FII) selling continued.

In the sectoral landscape, there was a notable 2 percent increase in the BSE Realty index, a 1.8 percent uptick in the BSE Information Technology index, and a 1 percent rise in the BSE Capital Goods index. On the flip side, the BSE Power Index recorded a significant decline of 2.5 percent, the BSE Metal index experienced a 2.3 percent drop, and the BSE Telecom index saw a 2 percent decrease.

The Indian benchmark indices navigated a week marked by high volatility, ultimately concluding with marginal changes. The initial part of the week was characterized by pressure due to rising US bond yields, a stronger dollar, and mixed auto sales data. However, the latter part of the week offered some respite, thanks to positive domestic PMI data, an RBI policy outcome in line with expectations, and declining crude oil prices.

For the week, the BSE Sensex posted a modest gain of 0.25 percent or 167.22 points, closing at 65,995.63. Similarly, the Nifty50 added 15.2 points to end the week at 19,653.50.

Within the BSE Small-cap index, several stocks performed well, including Vascon Engineers, Sasken Technologies, Bhagiradh Chemicals and Industries, Authum Investment & Infrastructure, Raghav Productivity Enhancers, and Good Luck India, all witnessing significant 20 percent increases. Conversely, Mahanagar Telephone Nigam, DCM Shriram Industries, Aarti Pharmalabs, Steel Exchange India, GE T&D India, Sat Industries, Indiabulls Housing Finance, and Kalyani Steels faced declines ranging from 7 to 9 percent.

The BSE Mid-cap Index, however, dipped by 0.8 percent, primarily influenced by downward movements in stocks such as Dalmia Bharat, Glenmark Pharma, Gujarat Fluorochemicals, Vodafone Idea, Steel Authority of India, CG Power and Industrial Solutions, and Supreme Industries. On the positive side, gainers in this category included Godrej Industries, Godrej Properties, Solar Industries India, Indian Railway Catering & Tourism Corp, MphasiS, and The Ramco Cements.

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Over 100 Small-Caps Record Impressive Gains as Broader Indices Reach New Highs

This week witnessed a remarkable performance in the Indian stock market as the BSE Sensex surged by 0.77 percent, gaining 500.65 points to close at 65,387.16. Simultaneously, the Nifty50 index showed strength by adding 0.87 percent, resulting in a gain of 169.5 points and concluding the week at 19,435.30.

The positive momentum in the market was fueled by encouraging GDP figures and robust manufacturing PMI data for the first quarter of this fiscal year. These factors allowed the benchmark indices to break a five-week losing streak, overshadowing concerns such as a weak monsoon, rising crude oil prices, and mixed global market trends.

However, it was not only the large-cap indices that demonstrated resilience; the broader indices also outperformed expectations. The BSE Mid-cap, BSE Small-cap, and BSE Large-cap indices recorded gains of 2.3 percent, 3.8 percent, and 1 percent, respectively.

Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, commented on the market's performance, stating, "Indian equities posted healthy gains this week. Large indices like the BSE-30 and the NSE-50 gave weekly returns of close to 1 percent. Indian mid-cap and small-cap indices outperformed their large-cap peer."

On the sectoral front, the BSE Metals and BSE Realty indices stole the limelight with weekly gains exceeding 5 percent. Other sectors that posted robust weekly gains included BSE Commodities, BSE Auto, BSE Capital Goods, and BSE Power. In contrast, the BSE FMCG index saw a negative return for the week.

Chouhan added, "India's real GDP growth in Q1FY24 came in at 7.8 percent. In the near term, the market is expected to keep a close watch on the impact of the weak monsoon in August and the rise in crude oil prices."

Sector-wise, the BSE Metal index registered an impressive 6 percent jump, while the BSE Realty index surged by 5.7 percent. Additionally, the BSE Telecom index climbed 4.5 percent, and both BSE Power and Auto indices saw gains of 3.4 percent each. Conversely, the BSE FMCG index experienced a 0.5 percent decline.

The BSE Small-cap index emerged as a standout performer, surging by 3.8 percent. Among the small-cap stocks that stood out were Railtel Corporation of India, India Pesticides, Optiemus Infracom, HLV, Take Solutions, RattanIndia Power, Atul Auto, Jai Balaji Industries, Gokaldas Exports, Cerebra Integrated Technologies, Pokarna, Uflex, Coffee Day Enterprises, Skipper, and Sharda Motor Industries, all recording gains ranging from 25 to 46 percent.

On the flip side, GNA Axles, Digispice Technologies, Kuantum Papers, Waaree Renewable Technologies, Newgen Software Technologies, and Electronics Mart India witnessed declines of 10 to 46 percent.

Foreign institutional investors (FIIs) continued their selling spree for the sixth consecutive week, divesting equities worth Rs 4,311.58 crore. In contrast, domestic institutional investors (DIIs) exhibited a contrasting trend by purchasing equities worth Rs 9,570.03 crore. However, for the month of August, FIIs sold equities worth Rs 20,620.65 crore, while DIIs bought equities worth Rs 25,016.95 crore.

Nifty50 Outlook

Amol Athawale, Vice President - Technical Research, Kotak Securities

Analyzing the daily and intraday charts, the Nifty displayed a double bottom formation, indicating a strong possibility of an upcoming rally. Moreover, a long bullish candle on the daily charts supports the case for a continued uptrend. Key support is expected at 19,350, while the index could potentially rally towards 19,575. However, if support at 19,350 is breached, the uptrend might face vulnerability, with potential declines towards 19,275-19,220.

For Bank Nifty traders, the crucial support level is at 44,200. A move above this support could lead to gains towards 44,700 and 45,000. Conversely, a breach of 44,200 could result in a retreat towards 43,900-43,700 levels.

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

From a technical perspective, the Nifty experienced a notable rebound from the 19,250 zone, where buying interest emerged. Daily and hourly momentum indicators have triggered a positive crossover with divergence, signaling a bullish outlook in the short term.

On the weekly charts, the Nifty managed to close in positive territory after five consecutive weeks of decline, suggesting that it has reached a region where buying interest is evident. Taking these factors into account, the short-term outlook on the index

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Check the Latest IPO and GMP

Vishnu Prakash R Punglia IPO: Infrastructure Firm Sets August 24 Opening, Price Range at Rs 94-99 per Share

Infrastructure company Vishnu Prakash R Punglia is poised to launch its Initial Public Offering (IPO) on August 24, offering its equity shares in a price band of Rs 94-99 each. The public issue, consisting of 3.12 crore equity shares, is exclusively a fresh issue by the company.

The IPO also includes a reserved portion of 3 lakh equity shares for its employees, granting them shares at a discounted rate of Rs 9 per share from the final offer price. With plans to raise approximately Rs 308.88 crore through the public issue at the upper price band, the Rajasthan-based engineering, procurement, and construction company aims to channel these funds towards capital expenditure and working capital requirements.

The offering is set to conclude on August 28, while the anchor book will open for a single day on August 23. Prospective investors can bid for a minimum of 150 equity shares and in multiples of 150 shares thereafter. Qualified institutional buyers will have access to half of the issue size, while 15 percent is reserved for high-net-worth individuals (HNIs), and the remaining 35 percent is earmarked for retail investors.

Vishnu Prakash R Punglia, known for its experience in designing and constructing various infrastructure projects, is particularly focused on water supply projects (WSPs). The company has successfully executed over 75 WSPs to date, with 38 WSPs currently under execution. Boasting a strong clientele across different government departments, the company's robust order book includes over 85 projects completed and 51 ongoing projects spread across 9 States and 1 Union Territory.

While the fiscal year 2022-2023 witnessed the company doubling its net profit to Rs 90.64 crore, revenues from operations during the same period surged by 48.7 percent to Rs 1,168.4 crore. Notably, the company has managed to achieve a CAGR of 55.10 percent in its topline growth from FY21 to FY23. Despite the impressive performance, the company's debt has risen, reaching Rs 250.4 crore in FY23, compared to Rs 176.6 crore in FY22 and Rs 110.8 crore in FY21.

The IPO's merchant bankers include Choice Capital Advisors and Pantomath Capital Advisors, while Link Intime India will serve as the registrar.

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Market ends week with small gains; realty index climbs 4%, rupee appreciates

Indian equity market witnessed a rangebound movement to end almost flat in an eventful week ended June 2 amid better-than-expected GDP data, 31-month-high manufacturing PMI, higher GST collections, strong auto sales in May and closure of US debt ceiling discussions. In this week, the BSE Sensex gained 45.42 points to close at 62,547.11, and Nifty50 rose 34.75 points to end at 18,534.1.

The BSE Small-cap index surged 2.4 percent with Nucleus Software Exports, Force Motors, Centum Electronics, V2 Retail, Nureca, Brightcom Group, The Hi-Tech Gears and Kopran rising 26-40 percent, while losers included SEPC, Sunflag Iron and Steel Company, SVP Global Textiles, Sintex Plastics Technology, Campus Activewear, Technocraft Industries (India), Greaves Cotton and Precision Wires India.

BSE Mid-cap Index rose nearly 2 percent led by Power Finance Corporation, Nuvoco Vistas Corporation, 3M India, REC, Aurobindo Pharma and Apollo Hospitals Enterprises.The BSE Large-cap Index ended on a flat note. Gainers were ICICI Lombard General Insurance Company, FSN E-Commerce Ventures (Nykaa), HDFC Asset Management Company, Zomato and ICICI Prudential Life Insurance Company, while losers were Adani Total Gas, Adani Transmission, Vedanta, Oil and Natural Gas Corporation, Coal India and Adani Enterprises.

Foreign institutional investors (FIIs) were net buyers in equities this week as they bought equities worth Rs 6,519.73 crore, while domestic institutional investors (DIIs) sold equities worth Rs 1,043.1 crore.Among sectors, the Nifty Realty index gained nearly 4 percent, Media index added 3 percent and Healthcare index added 2.5 percent, however, Oil & Gas index shed 2.7 percent and Energy index fell nearly 2 percent.

In the BSE Sensex, Reliance Industries lost the most in terms of market cap, followed by ICICI Bank, Tata Consultancy Services and Infosys. On the other hand, Hindustan Unilever, Titan Company and Bharti Airtel added the most of their marketcap.During this week, the rupee gained 27 paise to end at 82.30 to a dollar on June 2 against its May 26 closing of 82.57.

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Top 10 Factors that affect the Stock Market on Monday

Bulls kept charging the markets throughout the truncated week that ended April 7, pushing the benchmark indices to sustain their rally. A host of reasons such as higher-than-expected PMI manufacturing data, monthly auto sales numbers, provisional Q4FY23 numbers from banks and NBFCs, FII inflow, and the RBI's surprise pause in interest rate hike with upward revision in growth forecast to 6.5 percent from 6.4 percent aided the surge.

The BSE Sensex climbed 841 points or 1.4 percent to 59,833, and the Nifty50 rose 239 points or 1.4 percent to 17,599, supported by banking and financial services, auto, pharma, and infrastructure stocks.

The broader markets also traded higher with the Nifty Midcap 100 and Smallcap 100 indices gaining 1 percent and 2 percent.

After yet another encouraging week, the momentum is expected to continue along with some volatility in the holiday-shortened week beginning April 10 with focus on corporate earnings, inflation data, global news flows, and FOMC minutes, experts said. 

1) Corporate Earnings

The corporate earnings season for the March FY23 quarter will be kicked off by index heavyweights Infosys on April 13, Tata Consultancy Services on April 12, and HDFC Bank on April 15.

2) CPI Inflation

The consumer price inflation, which measures the change in prices of a basket of goods and services, is likely to drop below the 6 percent mark in March on April 12, with moderation in food inflation, against 6.4 percent in the previous month, while core inflation is likely to be sticky around 5.9-6 percent.

3) US Inflation and FOMC Minutes

On the global front, investors will look for cues from US inflation numbers and FOMC minutes scheduled to be released on April 12. Overall, the inflation is expected to moderate further to around 5.3 percent in March against 6 percent in the previous month, while the core inflation is likely to be steady at around 5.5 percent, as per the forecast available on Trading Economics.

4) Global Economic Data Points

5) FII Flow

The consistent FII inflow due to the falling US dollar index and bond yields also aided the markets and experts believe the flow is expected to continue given the hope that Federal Reserve may consider a pause in interest rate hike cycle sooner than later.

6) Oil Prices

Crude oil prices reached to a month's high, with international benchmark Brent crude futures rising to over $85 a barrel, from $79.77 on a week-on-week basis and WTI crude climbing from $75.67 to $80.46 a barrel in the same period, after a surprise OPEC+ output cuts and more-than-expected draw in US oil stocks. But the gains were capped towards the end of week after the weak US economic data raised fears over demand outlook.

7) Technical View

The Nifty has formed bullish candlestick pattern on the weekly scale, with making higher top higher bottom for second consecutive week, and the momentum indicator RSI (relative strength index) giving a nice positive crossover. Also the index climbed back above the 50-week EMA (exponential moving average - 17,426), which is another positive sign.

8) F&O Cues

The weekly Option data indicated that the 17,600 is expected to be a crucial level for the next direction of Nifty50, where we have seen maximum Call as well as Put open interest. Further, the index may find strong resistance around 17,600-17,800 area, whereas 17,500 is expected to be near-term support followed by crucial support at 17,000 levels.

9) India VIX

The volatility cooled down considerably in the last couple of weeks, with the India VIX fell by 8.8 percent for the passing week to 11.79, the lowest weekly closing level since July 2021, from 12.93 levels last week.

10) Corporate Action

Schaeffler India, Britannia Industries, Varun Beverages, Visaka Industries, Edelweiss Financial Services, and Goodluck India will trade ex-dividend, while Emami will turn ex-buyback in the coming week.

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Nifty closes above 18,600 for the first time, next hurdle 18,700

The Nifty hit another high to close above 18,600 for the first time on November 29, extending the uptrend to the sixth consecutive session supported by positive global cues and buying in FMCG, metal and pharma stocks.

After opening flat at 18,552, which was also the day's low, the index traded higher for the rest of the day. It hit a new high of 18,678 and closed 55 points higher than the previous day at 18,618. The index has formed a bullish candle on the daily charts, making higher highs for the fifth straight session.

Momentum indicators the Relative Strength Index (RSI) trading above 60 and Moving Average Convergence and Divergence were trending upward on the daily and weekly charts, with MACD giving a positive crossover on the daily frame.

"The market is consistently holding higher high and higher low formation which is broadly positive. Hence the support has now shifted to 18,550 from 18,450," Shrikant Chouhan, Head of Equity Research ( Retail) at Kotak Securities said.
As long as the index trades above 18,550, the uptrend will continue. The market can move to 18,750-18,800, the expert said.

The broader market, however, saw profit booking, with the Nifty midcap 50, midcap 100 and smallcap 100 indices declining half a percent each. On the options front, the maximum Call open interest was at 19,000 strike followed by 20,000 strike, with Call writing at 18,800 strike then 18,700 strike. The maximum Put open interest was seen at 18,000 strike followed by 17,000 strike, with Put writing at 18,600 strike then 18,500 strike.

The data indicates that in near term, the Nifty may trade in range of 18,400 to 18,800. India VIX was up by 0.36 percent to 13.62 levels, but overall it has been cooling off for the last nine weeks and supporting the bulls.

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