Street signs: Fuel-sensitive stocks, Paytm's Rs 18,300-crore IPO, and more

Fuel-sensitive stocks in focus

Shares of auto and logistics companies are expected to extend gains on account of the cut in diesel and petrol prices. Most companies in the space were seen rallying during the ceremonial one-hour-long trading session on Thursday. “Auto stocks have underperformed this year. Many are hoping that the shares will do well going ahead due to the relatively attractive valuations. The fuel price cut could act as a tailwind,” said an analyst.

Mega float may weigh on liquidity 

Digital payment major Paytm’s Rs 18,300-crore IPO could impact secondary market liquidity, said some experts. The company’s IPO, largest-ever in the domestic market, will remain open between Monday and Wednesday. “Our market has not seen such a large issuance. It will be interesting to see how it plays out on the secondary market,” said an expert. Others say the impact could be limited as the IPO may not be a big draw for retail and high net-worth individuals, given the tepid grey market premium. Shares of the company are commanding only 5 per cent premium in the unofficial grey market.

Birla AMC anchor lock-in ends 

Shares of Aditya Birla Sun Life AMC are likely to come under the spotlight as the 30-day lock-in period for anchor investors ends on Monday. Market experts don’t rule out downward pressure on the stock. “As seen in recent cases, the stock may see some selling from anchor investors. However, the selloff may not be as severe as there is no money to be taken off the table,” said an analyst. Shares of the company last closed at Rs 648. The Birla group firm’s shares are currently down 9 per cent over its issue price of Rs 712. Anchor investors hold 3.85 per cent stake in the company.