By Arun Kejriwal The week began on a bleak note for markets, with sharp losses on the first day of the week.They ended the week with more worrying signs, losing 1.5x more on Friday than they lost on Monday.This left the world wondering what the next week would bring for global markets.
BSESENSEX lost 2.528,00086 points or 4.24 percent to close at 57.107.15 points.NIFTY lost 738.35 point or 4.16 percent to close at 17,026.45.45 points.BSE100 and BSE200 lost 4.10 percent, 4.07 percent, and 3.96% respectively in the broader markets.BSEMIDCAP lost 4.14 percent, while BSESMALLCAP fell 2.52 percent.The markets lost three of the five trading sessions, while they gained two.Surprisingly, gains and losses occurred on different days.
The Indian Rupee fell 63 paisa (0.85%) to close at Rs.74.87 against the US Dollar.Dow Jones lost nearly 900 points in half an hour of trading on Friday, when it suffered a grueling half-day.Dow closed at 34,899.34, down 702.64 points, or 1.97 percent, for the shortened week.Dow Jones futures are down an additional 185 points at the time this article was written.
Global markets have been shaken by the discovery of the new Covid-19 mutant, ‘Omicron’ from Africa.
There has been an increase in Covid-19 cases in Europe, including the UK, Germany, Austria, and Germany.The number of cases in the USA has been increasing rapidly, with some even dying.
Many countries, including India are considering new restrictions on international travel.
India has seen an increase in vaccinations.They now have 122.07 crore, which includes 78.37 million people who have received their first dose and 43.69 millions who are fully vaccinated.This new variant or mutant would raise awareness and we should see more people vaccinated.
November futures ended on a week note that lost 321 points or 1.80 percent to close at 17,536.25 point.It is alarming to note that December series’ first day began with losses of 509.80 point or 2.91 percent on NIFTY and 1,687.94points or 2.87 percent on BSESENSEX.
Issue from Go Fashion (India Limited) Limited was oversubscribed 135.40 Times in the primary market.QIB section subscribed 100.73, HNI section subscribed 262.08 and Retail part subscribed 49.39.This issue is expected list on Tuesday of the next week.
Two issues were listed in the past week.Latent View Analytics Limited’s first issue was the most subscribed in the last decade, with 338.51 subscribers.The issue, which had a size of Rs 600 million, attracted a subscription of Rs 1.13 crore crore.The share, which was initially issued at Rs.197, ended day one at Rs.488.60, increasing 148 percent.The share gained more and closed at Rs 695.95 at the end of the week, a gain 253.27 percent.
Tarsons Products Limited, which had issued shares at Rs 652, was the second share to be listed.The share closed at Rs 840 after a sedate discovery price of Rs 700.This was a gain of 26.89 percent.This could be a fascinating point to consider.Of the 22 shares that were listed on August 16, only 10 or 45.45 percent are trading below the issue prices.This clearly shows that the market is being affected by the pricing of issues by promoters, private equity investors, and merchant bankers.
Star Heath and Allied Insurance Company Limited will open the first issue next week.This new issue is worth Rs 2,000 crore and offers to sell 5.83 crore shares at a price range of Rs 870-900.The issue would bring in Rs 7,249 crore at its highest price.
The issue will be available from Tuesday, November 30th to Thursday, December 2nd.
The largest private sector player in health insurance is this company, but it reported losses for the year ending March 2021 and the quarter ending September 2021.
Due to claims for Covid-19, the company would not be able to turn profits into the current year.The balance sheet of star-health will be affected by claims for other seasonal and viral diseases like dengue, malaria, chikungunya, and chikungunya.
At the current rate, the company may not be able to make profits in FY 23.The stock has a PE of infinite and the NAV as at 30 September is Rs 57.83.The issue is costly and investors should spend Rs 14,400 they would have used in the share to purchase health insurance for Covid-19 or other diseases.This would be a great investment as it would protect your health and make you wealth.
Tega Industries Limited’s second issue is available for sale at Rs 443-453.
It is offering 1,36,694,478 shares for sale at a price range of Rs 443-453.The issue would bring in 619 crore at its highest price point.
The issue will be available from December 1 through December 3.The company manufactures recurring consumable products for the mining industry.It is a major player in this sector.The company has three plants located in India, three in Chile, and three in South Africa.
For the year ended March 2021, the company reported an EPS value of Rs 20.48 based on a fully diluted basis.At this EPS, the PE multiple for company is 21.63-22.12.Tega is the only competitor for the company.Tega makes equipment for the metals mining sector, while AIA Engineering makes similar equipment for cement plants.Wagner, a private equity investor, is leaving the company after 10 year and would make a return of 2.62x.One believes that the returns are suboptimal considering the returns private equity investors are making and how the fortunes of the mining sector have changed.Make a calculated decision about investing in the company.
Markets will be volatile, choppy and, most importantly, cautious for the week ahead.
While FII’s have been aggressively selling in the secondary market but the flurry of IPO’s seems to never end, Markets must stabilize and get over fears of valuations, Covid-19 new strain and FED interest rates increasing.There are also a host of smaller issues that need to be addressed before sanity reigns.
It is not good news for global markets that oil prices fell close to 10%.
It is a good idea to have cash on hand, and then go out and buy large cap stocks.Any rallies that may be classified as corrective, dead cat bounce, you can use to sell into and make profits.Avoid shorting, as the bull in distress would try to retaliate.
Let the markets consolidate and find new levels stability before you make new commitments.
Kejriwal Research and Investment Services was founded by Arun Kejriwal.These views are my own.
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