The key benchmark indices staged a smart recovery on Monday helped by steady gains in private banks and IT shares. The Sensex gained 969 points from the day’s low, to settle 296 points higher at 57,420, and the NSE Nifty ended with a gain of 82 points at 17,086. Debutant HP Adhesives ended at Rs 335 - a 22 per cent premium to its issue price of Rs 274 per share.
Shares of RBL Bank hit a 52-week low at Rs 132.35, slipping as much as 23.2 per cent in Monday’s intra-day trade, after the bank said over the weekend that Vishwavir Ahuja, its managing director and chief executive officer, had gone on leave and the Reserve Bank of India (RBI) had appointed Yogesh K Dayal as an additional director of the bank.
The development saw most analysts sound caution as regards the road ahead for the bank and suggest the December 2021 quarter results may provide the much-needed sentiment support to the counter. The RBI, too, on its part allayed investors’ fears saying that the bank remains on a sound footing.
According to brokerage CLSA: "We believe that with such a transition, banks with the RBI’s permission should give more solid reasoning for the actions of the regulator as minority investors are important stake holders. Its 2HFY22 results will be the key in bringing about stability and comfort."
Over the next few days, given the trading holidays owing to the year-end celebrations globally, volume especially from the FII segment is likely to remain thin. However, the key benchmark indices are prone to sudden sharp swings given the uncertain news flow on developments around the Omicron variant and the monthly F&O expiry.
On Tuesday, investors shall eye the outcome from the SEBI meet.
Some of the key points that may be discussed in today’s SEBI board meet, according to reports, include – increasing the lock-in period for anchor investors from present 30-day norm, fixing a separate price band for wealth investors (NIIs ) segment and putting restrictions on the use of startup IPOs funds for unidentified M&A activities.
That said, analysts expect stock-specific action to continue as the week progresses though the indices may still remain range-bound and prone to volatility. On Tuesday, shares of Supriya Lifescience are likely to debut on the bourses.
Supriya Lifescience IPO received a strong response from all sets of investors, with the share sale being subscribed 71.51 times. The retail portion was subscribed 56.01 times and wealthy investors up to 161.22 times. The Grey Market Premium is indicating a likely 40-45 per cent listing gain for the stock versus the issue price of Rs 274 per share.
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 "Market analysts sound caution on RBL Bank")
