Street signs: TTK Prestige rally, debt SIPs on the rise, and more

More steam left in TTK Prestige rally
 
Shares of TTK Prestige, a manufacturer of kitchen appliances and cookware, have gained 40 per cent this year. Analysts believe there is more steam left in the rally. Domestic pressure cooker manufacturers are likely to benefit from low penetration, lack of competition and shift towards premiumisation. Analysts said the pressure cooker market offers growth of 9 per cent per annum and less presence of multinational companies in this segment and the resultant low competition will help domestic players achieve stable profitability. "Introduction of pressure cookers which can be used on gas stoves as well as induction cooktops will also drive premiumisation," said a note by ICICI Securities.

 
Grey market’s false signals
 

Investors, especially high net-worth individuals (HNIs), rely heavily on grey market signals for punting on any IPO. But recent listings showed the strategy may not always work. Last week, shares of Shyam Metalics and Sona BLW Precision gained over 20 per cent each during their stock market. Grey market premia (GMPs) had indicated the former to list at over 40 per cent premium, which led to 340 times oversubscription in the HNI category. Sona BLW, on the other hand, was pegged to list around its issue price. As a result, the HNI portion got just 40 per cent subscription. “HNIs lost money in Shyam and missed a big opportunity in Sona. Last year, investors gave Gland Pharma’s IPO a miss due to tepid GMPs,” said a market player.

               
Debt SIPs on the rise
 
Systematic investment plans (SIPs) have remained a preferred route for retail investors investing through the mutual fund (MF) route. Industry players say over 90 per cent of the SIPs are to gain equity exposure. However, the mix seems to be changing. With the markets climbing to new highs and valuations reaching elevated levels, retail investors are shifting focus towards debt funds. With the debt space, market participants say, investors are preferring categories such as banking and PSU debt funds and medium duration funds as returns are better compared to liquid and ultra-short-term funds.