Sensex Nears All Time High; Metal & Auto Stocks Rise

Indian share markets continue to trade on a strong note after plummeting 850 points in opening trade as the BJP headed for a victory in Gujarat to retain its nearly two-decade stranglehold over power and also stayed on course to oust the Congress in Himachal Pradesh. Sensex inched closer to the all-time intra-day high of all-time high 33,865.95.

The BSE Sensex is trading higher by 290 points and the NSE Nifty is trading higher by 93 points. Meanwhile, the BSE Mid Cap index is trading up by 1.4% & the BSE Small Cap index is up by 0.9%. Gains are largely seen in metal stocks, auto stocks and pharma stocks. The rupee is trading at 64.09 to the US$.

In news from IPO segment, ICICI Securities, a subsidiary of private sector lender ICICI Bank, has filed draft red herring prospectus (DRHP) with the market regulator to raise an estimated Rs 30-40 billion through an Initial Public Offering (IPO).

The public offer will comprise sale of 64,428,280 equity shares, amounting to 20 percent stake, by ICICI Bank.

The company intends to use a portion of the net proceeds to achieve the benefit of listing the equity shares on the stock exchanges.

Reportedly, ICICI Bank will be diluting its stake in ICICI Securities. ICICI bank share price was trading up by 2.3% on the BSE.

In another development, Future Supply Chain solutions share price was trading up by 3.8% from its issue price of Rs 664 per share.

The offering, which was open for subscription between December 6 and December 8, was subscribed 7.56 times. The issue price was fixed at Rs 664 per share i.e. at upper end of price band of Rs 660 – 664 apiece.

2017 will undoubtedly be considered as the year of IPOs. The IPO activity is headed for a record. They have garnered more than Rs 650 billion, surpassing the previous record of Rs 375 billion in 2010. This year, the demand has exceeded expectations.

According to an article in Business Standard, an investor who bet on the 33 IPOs of 2017 (on a weighted average basis) has seen the value of investment rise by 17%. However, compared to broad market indices, the underperformance is a bitter disappointment.