Indian Stock Markets Enter Consolidation Amidst IPO Surge
Indian stock markets opened November with a flat session, continuing consolidation. While IPOs surged, expert Ajay Bagga noted the potential for market outperformance, conditional on global stability. Key factors include earnings growth, rupee stability, and the India-US trade deal. Regional politics and sectoral performance will influence future trends.
- Country:
- India
The Indian stock markets commenced November's first trading session on a flat note, maintaining their streak of consolidation. The Nifty 50 opened at 25,696.85, a dip by 25.25 points or 0.10 percent, while the BSE Sensex started at 83,835.10, down by 103.61 points or 0.12 percent.
Market experts highlight a robust month for initial public offerings (IPOs), with promoters capitalizing on high valuations to monetize their holdings. Ajay Bagga, a noted banking and market expert, informed ANI that promoters, private equity funds, and foreign portfolio investors are finding easy exits via Indian retail inflows through mutual funds and insurance channels.
Bagga pointed out that after 13 months of underperformance, the Indian market might soon witness an outperformance phase, assuming no major global disruptions occur. He mentioned the anticipated India-US trade deal and the impact of upcoming Bihar elections on market sentiment, as the regional party's influence could affect the federal coalition government.
In November, the primary market is set for a bustling period with IPOs potentially raising over Rs 70,000 crore. Despite valuation concerns over Lenskart's IPO, it saw full subscription in the retail sector on the initial bidding day. Institutional and retail investors showed strong interest, with QIBs subscribing 1.42 times their share.
The broader market saw the Nifty 100 index slightly decline by 0.04 percent, whereas midcap and smallcap indices increased by 0.10 percent each. Sectoral indices exhibited mixed trends; Nifty Auto was up 0.15 percent, while IT, FMCG, and Media indices dipped. Nifty PSU Bank led the gains, climbing 0.62 percent in early trade.
Sunil Gurjar, a SEBI-registered analyst, remarked that the Nifty 50's flat performance indicates a consolidation phase near the resistance of 25,265 points, suggesting a potential breakout and continuation of the uptrend.
Today's key financial results include firms like 3M India, Bharti Airtel, and Tata Consumer Products. Asian markets saw the Hang Seng index rise 0.48 percent, with South Korea’s KOSPI gaining over 2 percent. Meanwhile, Singapore and Japan’s markets were closed due to holidays.
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