Report by- Sabyasachi Bhattacharya
Weak listing for Aavaas Financiers as it debuts at a 9% discount to IPO price-
Housing finance company Aavas Financiers shares butchered on opening itself on Monday as the stock price debuted at Rs 746, a 9 percent discount to issue price of Rs 821. The stock was trading at Rs 719.9, down 4 percent from its listing price at 10:05 hours IST on the NSE. On the BSE, it was quoting at Rs 711.1, down 6 percent after opening at Rs 758. Aavas Financiers is a retail, affordable housing finance company, primarily serving low and middle income self-employed customers in semi-urban and rural areas in India. The Rs 1,734 crore initial public offer was subscribed 97 percent during September 25-27, amid challenging stock market conditions for the entire NBFC sector. The IPO comprised a fresh issue of up to Rs 400 crore and an offer for sale of up to 1,62,49,359 shares, including anchor portion of 63,36,439 shares. Price band for the offer was fixed at Rs 818-821 per share. The listing was on expected lines due to weak market conditions and sharp correction in NBFCs including housing finance companies after IL&FS-led liquidity fear and high valuations.
Source-MoneyControl, Purple Trades Research Department
Amidst high volatility, Nifty and Sensex recover sharply-
Chart source- Upstox
Indian markets had a day of recovery today after a long period of bear dominance. As you can see in the charts, there was high volatility in the markets which kept the investors and speculators interested. In the early periods of the day Nifty moved lower where it formed a Hammer. Just after the two hammer formations the market got injected with bulls who took the price much higher and breached the 10,350 mark. Once the market reached this level, it consolidated for a brief period throughout the lunch session. After the lunch session market again caught up volatility and started moving downwards showing the entry of the bears. But the bears could not breach the support provided by the 10,200 mark which as you may recall also provided the support in the morning session. After the formation of an Invested hammer, the market was again showing bullish signs as the bulls ensured that Nifty recovered after the lunch session. All in all there was high volatility in the market and it came as a sigh of relief for the investors after four consecutive bearish days. A sharp recovery in financials in the last hour helped indices close in the green as Nifty closed around the 10,350 mark, while Sensex ended around 100 points higher. Although the market was equally volatile in both the directions, we can sum up the following points on why the market ended up Green today-
- Oil dropped to around $83 a barrel on Monday, pressured by expectations that some Iranian oil exports will keep flowing after the U.S. re-imposes sanctions, easing a strain on supplies. Two companies in India, a big buyer of Iranian oil, have ordered barrels in November, India’s oil minister said on Monday.
- From 3:30 in the morning till 7AM rupee moved upwards against the dollar and staying below Rs 74/$.
- RBI’s neutral stand on the Repo rate came as a shocker as the Central Bank was expected to raise the Repo rate by 25 bps but they didn’t. This also helped the markets recover.
- Finance Minister Arun Jaitley Saturday said there are some more steps on the anvil to narrow the current account deficit (CAD) and bolster forex inflows. The minister said the government has already cut the borrowing target for the current fiscal by Rs 70,000 crore and allowed oil companies to raise $10 billion in one year.
Source- Purple Trades Research Department
Top sectors that moved the market today- Data source- Moneycontrol
Top Gainers for today- Data source- Moneycontrol
Top losers for today- Data source- Moneycontrol