Head-institutionalsales&salestrading, Systematix Shares
Do you expect the primary markets (IPOS) to suck liquidity out of the secondary market in coming months?
The market is flush with liquidity and I don’t think that IPOS will suck out liquidity. The domestic inflows are very strong and there is a shortage of good quality stocks. The IPOS will enable the funds to invest in new ideas.
Can you say that IPOS this year have revived the retail investors' sentiments?
I can say that lack of other investment avenues have revived retail investors' sentiments. Also, due to the bull market scenario, IPO companies with good growth visibility have received premium valuations. Not all IPOS have received block buster response. Listing gains in growth companies is the major reason for revival of retail investors sentiment.
Are rich valuations a concern for IPO investors as well?
IPO investment gives institutional and long term investors sizeable investment opportunities. Rich valuations are not a concern if the company can provide good topline and bottomline growth. Good companies with good financials would continue to get rich valuations.
What are the key risks for the equity markets at this juncture?
The most important risk to equity markets is slowdown in domestic flows. All geopolitical risks would be taken care of as long as domestic liquidity is strong.
Would you recommend IPO funding for investors?
I don’t really recommend IPO funding for investors. IPOS which are good have seen multiple times subscription, making IPO funding unattractive. IPOS which are anyways not good should be completely avoided.