Sensex Up 1.3%; Consumer Durables Stocks Witness Buying

After opening the day flat share markets in India are trading on a positive note and are presently trading above the dotted line. Sectoral indices are trading on a mixed note, with stocks in the energy sector and stocks in the PSU sector witnessing maximum buying interest.

The BSE Sensex is trading up by 433 points (up 1.3%) and the NSE Nifty is trading up by 143 points (up 1.4%). Meanwhile, the BSE Mid Cap index is trading up by 3.7%, while the BSE Small Cap index is trading up by 3.1%. The rupee is trading at 74.17 to the US$.

In the news from IPO space, Garden Reach Shipbuilders and Engineers, made a weak debut on the bourses today as it opened at a discount to its issue price. The IPO debuted at Rs 104, a 12% discount to its issue price of Rs 118.

The IPO of the company was subscribed 1.02 times and the IPO received bids for 2,97,58,920 shares against the total issue of 2,92,10,760.

Garden Reach Shipbuilders and engineers is a shipbuilding company under the administrative control of the ministry of defense (MoD). The company was incorporated in 1934 and was later acquired by the Government of India from Macneill & Barry Limited on 19th May 1960.

The company primarily caters to the shipbuilding requirements of the Indian navy and the Indian Coast Guard. It is also engaged in engineering and engine production activities.

To know more about the company, you can read our IPO analysis of Garden Reach Shipbuilders and Engineers(requires subscription).

Speaking of IPOs, the stock market is gearing up for a burst of IPO activity.

According to EY India IPO Readiness Survey Report, globally, Indian exchanges recorded the highest IPO activity as the country saw 90 IPO launches that raised US$ 3.9 billion in the first half of this year.

We believe a merit-based selection, primarily including valuation, business, and management quality, is the logical way to go about investing in IPOs. If it means going against the herd, so be it. And going by recent past, this strategy has been proven to be successful more often.