IPO-bound stocks gain stock market spotlight

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After Bajaj twins, NTPC gains steam in stock market

By S Jha

New Delhi, September 26: The Nifty in all probability is looking to settle above 26000 level in near future. The Bank Nifty also is gaining strength from frontline banking stocks.

The global equity markets are drawing confidence from improving liquidity. Flow of funds is edging up indices in the emerging markets.

There is almost a flood-like situation in the primary capital market. The steady flow of IPOs may divert the liquidity from the secondary market per market participants.

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The IPO calendar is buzzing with fresh offerings. The success of the Bajaj Housing Finance and Premier Energies has boosted the confidence of investors.

The market is showing intense interest in stocks which have linkages with IPO-bound companies. Earlier, Bajaj Finance and Bajaj Finserve saw stellar run on the street in the run up to the Bajaj Housing Finance IPO.

After the listing of the Bajaj Housing Finance, calm returned to two Bajaj twins on the street. They are now in consolidation phases per market participants.

Hero Moto Corp has been trending for past few weeks. The buzz in the stock among other reasons is also due to IPO-bound Ather in which the Munjal-owned company has major stakes.

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NTPC is now buzzing on the street. The thermal power major sizzled on the street in the yesterday’s session.

NTPC share gained over four per cent yesterday. It kept adding strength as the day progressed. Brokerages are giving targets for NTPC as high as ₹483 in the short term.

The NTPC’s renewable energy arm is slated to list on the bourses. Investors are taking positions in NTPC per market participants in the hope that shareholders’ category will help them get allotment of IPO shares.

The NTPC’s renewable energy arm IPO has been highly awaited in the street. The last two renewable energy related IPOs – IREDA and Premier Energies — after their listing whetted appetites of the investors.

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Waree Energy Renewable has also been buzzing after green nod to its arm for IPO. This scrip had corrected 50 per cent from its peak.

The easy bets for traders are to go after the stocks whose associates are coming out with IPOs, claim market participants. The Bajaj twins have shown the path to the traders to make short term bets on such scrips who have stakes in the IPO market.

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