Street signs: Gland's grey market premium shrinks, banking stocks, and more

Gland’s grey market premium shrinks

The grey market premium for Gland Pharma has come off sharply from Rs 185 per share to just Rs 60 per share. Market players say the company has priced its IPO aggressively which has hit sentiment in the grey market. China’s Fosun Pharma-promoted firm has set the price band at Rs 1,490-Rs 1,500 per share for its Rs 6,480-crore IPO. “Many were expecting that the issue will be price around Rs 1,300 per share,” said a broker.

Sundar Sethuraman

Much steam left in bank stock rally

The Nifty Bank index posted its biggest weekly jump in seven months, gaining 12 per cent to end at 26,799 on Friday. The gains in banking stocks propelled the markets to near all-time highs. Derivative analysts say traders have built aggressive long positions in the banking stocks on optimism that the rally will continue. The open interest in the Nifty Bank index has risen 18 per cent, along with price rise, indicating the rally was supported by fresh long accumulation, says Dharmesh Shah, head-technical, ICICI Securities, who expects the index to move towards 27,500.

Sundar Sethuraman

Old wine in new bottle

Sebi's move to introduce a flexi-cap category has cheered the industry, but in a way defeated the very purpose of imposing restrictions on the multi-cap category, schemes of which were anyway investing across market capitalisations and functioning as 'flexi' funds. That most of the existing multi-cap funds will migrate to the new category is a given and, apart from the name change, fund managers and the key fund attributes will likely remain the same. A new category may also spur an asset gathering exercise, said experts. 

Ashley Coutinho