Premier Energies kisses moon in bear-trapped stock market

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Stock Market stays in bear grip while banks shine

By S Jha

New Delhi, September 5: Broader stock market remained in bear-trap on Thursday. Sensex shed 150 points. Nifty ended lower by 50 points.

Bank Nifty defied the bear trends on the street. The Banking index posted modest gains of 72 points.

While nine banking stocks in the index advanced, three were losers on Thursday. The Bank Nifty showed strength amid bearish overall trends.

Two days ago, Premier Energies listed on the bourses with over 91 per cent gains. The solar component manufacturer had shed almost 13 per cent from day’s high on listing day.

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The Telangana-based Premier Energies remained sideways yesterday. But the solar-panel manufacturer sharply rose by almost 20 per cent on Thursday.

The share of Premier Energies closed the day at ₹1000. It also happens to be one of the best IPOs to list in the market in the recent months.

The market is fancying with solar theme IPOs. The SME IPOs from solar space have given astronomical returns.

IREDA form the PSU space had quickly risen from the IPO price of ₹25 a share to go to the peak of ₹310 recently. The investors are hoping that Premier Energies will also give astronomical returns.

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But the solar-panel manufacturer is already commanding PE valuation in excess of 100. Its face value is ₹1. Besides, the listed solar companies have been bearish for months.

The likes of Waree Energies, KPI Green, and others have seen sharp corrections in the last three months. But Premier Energies is defying the sectoral trends.

The other recently listed IPO – Ola Electric – also reversed losses on the street. It gained over four per cent on Thursday.

The share of Ola Electric turned bullish amid the news break that the company will unveil electric three wheelers. Bajaj and some unlisted firms currently dominate the three-wheeler market in India.

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It was a day of reckoning for Hero Moto Corop. The share price of the two-wheeler giant crossed ₹5800 during the day.

Last year, Tata Motors had doubled the share price within a year from among the large cap. Hero Moto Corp is on course to repeat the feat of Tata Motors this year.

Titan sparked on the street on Thursday. The share price of Titan during the day sharply gained over four per cent.

The shining jewel from the Tata group has been steadily gaining since the Budget announced cut in duty on imports of gold. The chartists are taking special interests in Titan.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.

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