Nifty might again test 2015 lows

With the US Federal Reserve's meeting approaching on December 16, savvy investors are betting that the benchmark Nifty will test its 2015 lows. According to market players, several high net worth investors have purchased Nifty 7,500 puts in large quantities, anticipating further weakness in the market in the coming days. The 50-share index is currently at 7,780 points, only three per cent shy of the 2015 low of 7,558. Derivatives experts say 7,700 will act as a crucial support for the Nifty, and if that is broken, the index could slip to 7,500 points.

MFs not convinced with Sebi's direct plan push

In a move that could spell bad news for distributors of mutual funds (MFs), the Securities and Exchange Board of India (Sebi) wants the sector to promote direct investing. In a recent meeting of the Mutual Fund Advisory Committee, constituted by the regulator, the discussion was around reducing the commission payout to distributors and promote direct plans.

U K Sinha, chairman, Sebi, has also expressed his concerns about the sector's excessive dependence on distributors, at various forums. The sector, on its part, believes distributors bring more value to the table and one should not worry too much about saving 50-70 basis points.

Attractive IPOs but concern over allotment

The initial public offerings (IPOs) of Alkem Laboratories and Dr Lal PathLabs could be attractive bets, as they are both commanding a 20 per cent premium in the grey market. However, investors applying in the retail category are unlikely to get an allotment of more than one lot, say sector players. "In the SH Kelkar IPO, over 90 per cent of the retail applicants applied for just one lot. The two IPOs, which open next week, could see similar investment pattern. So, retail investors cannot expect allotment of more than one lot," said a broker.