Street signs: Credit risk funds' inflows capped, Ircon stock, and more

Credit risk funds’ inflows capped

A large fund house recently decided to put daily maximum subscription limit of ~10 million per investor for its credit risk fund. Sources say other fund houses too are considering putting similar restrictions on such schemes that invest in corporate debt papers which offer high yield but are riskier. “The macroeconomic headwinds are strong with the rupee sliding and bond yields rising. We are curbing inflows as deploying more funds towards riskier paper could backfire, if not checked,” said a fund manager. There have been instances in last few years, where certain fund houses with large exposure to risky debt papers, have been caught on the wrong foot of asset-liability mismatch in their schemes. 

-- Jash Kriplani

10% grey market premium for Ircon

Shares of Ircon International are changing hands at 10 per cent premium in the grey market. The transport infrastructure public sector undertaking’s (PSU’s) ~4.7-billion initial public offer (IPO) opens for subscription on September 17 in a price band of ~470 to ~475. Shares of recent PSU listings - Rites and Mishra Dhatu Nigam are  currently trading 40 per cent and 50 per cent, respectively, over their issue prices. Good post-listing performance of recent PSUs will help sentiment towards the Ircon issue, said a broker.

-- Samie Modak

Investors like the Wipro story

After a lacklustre performance for the entire year, Wipro seems to be getting a lot of attention from investors, including fund houses. The stock has been the best performer in the Sensex in the past month, rising 16.9 per cent. The Sensex is up only 1.8 per cent during this period. Market players said that though the company’s first quarter results were modest, there are expectations that growth in the US economy and a declining rupee will give software companies a boost. Last week, the company bagged its biggest-ever contract of $1.5 billion in the US.

-- Joydeep Ghosh