Stock markets to be abuzz with new IPOS next week

Both primary and secondary markets have seen a lot of action in the last month of the calendar year 2024 so far, now the week before Christmas and new year are likely to be similar in nature.

As the secondary market has recorded new all-time highs almost everyday in Dec. so far, some profit taking is likely going ahead. Last week the Sensex closed at a new all time high of 71,483.75 and Nifty-50 at 21,456.65.

More than half a dozen companies will hit the market with their initial public offerings, IPOS of Azad Engineering,inox India, Muthoot Microfin, Motisons Jewellers, Suraj

Estate, Happy Forgings, RBZ Jewellers, and Credo Brands are slated to open during the week. This is likely to suck some liquidity from market for bidding in these IPOS.

“The cumulative amount that is being targeted to be raised from these IPOS is around `8,000 crore. Markets are likely to witness a robust capital raise next year as well,” said Mahavir Lunawat, managing director, Pantomath Capital Advisors.

The foreign portfolio investors have invested `42,733 crore in equity in the first half of Dec. so far which is the second highest monthly inflow in 2024.

“The trend of FPIS turning buyers has intensified after the Fed indicated rate cuts in 2024. This triggered a crash in US bond yields with the 10-year going below 4 per cent. FPIS heavily bought stocks in banking and IT segments. FPI buying is likely to sustain, going forward,” said V K Vijayakumar, chief investment strategist, Geojit Financial Services.

FPIS are also investing in the debt market and have put in `8,936.58 crore so far in the first of December compared to `14,860 cr in November.