Street signs: FPI flows turn net buyers, Tata Tech shares firm up, and more

FPI flows: March a mirage, not an oasis

After being net sellers in the preceding two months, foreign portfolio investors (FPIs) turned net buyers in March. So far this month, FPIs have been net buyers of Rs 13,540 crore. On a year-to-date basis, FPIs have been net sellers to the tune of Rs 20,606 crore. However, this month’s positive tally is underpinned by a few large block deals, including the stake sale by Adani Group promoters. “Some large block deals may be offering a distorted picture of the FPI numbers. Volatility is heightened because of rate-hike fears and the Silicon Valley Bank’s swoon. One should parse this month’s FPI figures as they continue to take money off the table,” observes an analyst.

Volatility, advance tax payments halt IPO march

A few mid-sized companies have pushed their initial public offer (IPO) plans to next month amid a spike in market volatility. There were also concerns that advance tax payments this month could influence liquidity. “Everyone has to pay advance taxes by March 15. Often, this leads to a crunch in liquidity. This has made issuers circumspect. We could see a few launches in April,” says a banker. So far this month, only one IPO by automotive drivetrain components and solutions company Divgi TorqTransfer Systems has hit the market.

Tata Tech shares firm up in unlisted market

The stock price of Tata Technologies (Tata Tech) has firmed up in the unlisted market after the engineering services company filed its initial public offer (IPO) document with the capital markets regulator - the Securities and Exchange Board of India. “Shares of Tata Tech have gained between 10 per cent and 15 per cent in the past few days. They were quoting about Rs 700 a month back but are now going upwards of Rs 800,” says Dinesh Gupta, director of Unlisted Zone, a firm that facilitates the buying and selling of unlisted company shares. Market players say the prices could gain more in the run-up to the IPO if market conditions are well-disposed. Tata Tech isn’t issuing any new shares in the IPO. The offering will entirely be a secondary share sale by promoter Tata Motors and two other entities.