Zerodha founder Nitin Kamath appreciated the increasing interest of investors in IPO, said important things on the market
[ad_1]
Zerodha: This week has been full of excitement for the Indian stock market. Five IPOs were listed on NSE this year. In this Tata Technology (Tata Technology)’s IPO has made a big record. 73.5 lakh people applied for the company’s IPO. Seeing the increasing interest of investors in IPO, Zerodha co-founder Nitin Kamath has greatly appreciated the investors. He wrote on social media how after a long time, large scale activity started in the IPO market, the ₹7,600 crore IPO on NSE created a stir. Almost all the IPOs launched this week have received a very good response from the market. Its effect was visible in the market also. The combined market valuation of four of the country’s top 10 valued companies increased by Rs 65,671.35 crore last week. Reliance Industries was the biggest gainer. BSE’s benchmark index Sensex recorded a rise of 175.31 points or 0.26 percent last week.
What did Nitin Kamath say
Sharing a news from ET newspaper on social media platform, Nitin Kamath said that after a long time, we have seen massive activity in the IPO market, Rs 2.6 lakh crore blocked in bank accounts for an IPO worth Rs 7.6 thousand crore. Are. Had this been 2003, it would have taken 16 working days (or ~1 month), and all the money would have gone to investment bankers and investors would have had to bear at least 0.5% (assuming 6% per annum) or Rs 1300 crores . T+16 became T+12, T+6 and from September 2023 it is T+3 (~1 week). Now, the money never comes out of the bank account till allotment. While institutional investors may miss out on interest income with funds blocked in current bank accounts that do not earn any interest for those 3 days, retail investors continue to earn interest from their savings accounts during the IPO process. In almost every aspect, capital market regulations in India have improved phenomenally in the last 20 years, especially in the last five years.
FPI’s stance changed, net investment of Rs 378 crore in November
foreign portfolio investors (FPI) made a net investment of Rs 378 crore in Indian stocks in November. The main reason for this is the decline in American bond yields. According to the data, FPIs had sold Indian equities worth Rs 24,548 crore in October and Rs 14,767 crore in September. Earlier, FPIs were continuously buying Indian shares in the last six months from March to August. Purchases worth Rs 1.74 lakh crore were made during this period. Overall, the cumulative trend for 2023 remains good. So far in this financial year, FPI has invested Rs 96,340 crore. Hitesh Jain, Strategist, Institutional Equities Research at Yes Securities India, said, “We believe that in the coming times, improvement in risk appetite in EM (emerging markets) and decline in risk-free yields in the US will attract FPIs to India.” . According to the data, FPIs made a net investment of Rs 378.2 crore in Indian shares this month (till November 24). Foreign investors remained buyers for four days this month and made a big purchase of Rs 2,625 crore on Friday. V.K., chief investment strategist at Geojit Financial Services. Vijayakumar said that the better than expected decline in inflation in the US in mid-October has given the market confidence that the US Federal Reserve has increased the rates. As a result, US bond yields have fallen sharply and the 10-year benchmark bond yield has fallen from five per cent in mid-October to 4.40 per cent now.
[ad_2]
Source link
