Hold on to your seatbelts

The week had four trading days and markets gained on three of those days The BSESENSEX gained 53050 points or 167 per cent to close at 3181422 points NIFTY gained 19110 points or 191 per cent to close at 997970 points Broader indices like the BSE100 BSE200 and BSE500 gained 203 per cent204 per cent and 215 per cent respectively BSEMIDCAP gained 255 per cent and BSESMALLCAP gained 310 per cent Movement in the small indices has again picked upUnion Finance Minister Arun Jaitley and Revenue Secretary Hasmukh Adhia l at the 22nd meeting of the Goods and Services Tax GST council in New Delhi PicPTIGainers and losersThe top sectoral gainer was BSEMETAL up 422 per cent followed by BSEOILampGAS 403 per cent and BSEHEACARE 351 per cent There were no sectoral losers but the one to rise the least was BSEBANKEX at 068 per cent In individual stocks the top gainer was GAIL or Gas Authority of India Limited which was up 734 per cent followed by Aurobindo Pharma 699 per cent and Reliance Industries 657 per cent The top loser was Power Grid down 286 per cent followed by Hero Moto 206 per cent and ICICI Bank 173 per centDow is wowDow Jones was up and made yet another lifetime high It gained 36858 points or 162 per cent to close at 2277367 points The Indian Rupee was under pressure and lost 10 paisa or 015 per cent to close at Rs 6538 RBI met for its policy review and kept rates unchanged as was widely expected There was no adverse reaction to the same and market recorded gains for that day They have cut SLR rates which would reduce marginally the cost of funds for banksSegment on trackThe government has made some changes in GST norms for the SME and MSME segment This would help many small businessmen and significantly reduce paperwork and compliance costs Many could say that this was done keeping an eye on the upcoming State elections starting in the next two monthsEye on issuesPrimary market continues to hog the limelight The week gone by saw the successful launch and subscription of Godrej Agrovet The issue was subscribed over 95 times There were two listings during the week as well with SBI Life listing on Tuesday October 3 The company had through an offer for sale sold 12 crore shares at Rs 700 and raised Rs 8400 crore for its shareholders The issue did well on listing day but by the end of the week it closed with small small losses at Rs 69490 a loss of Rs 510 or 073 per cent The other share to list was snack maker Prataap Snacks which had issued shares at Rs 938 and gained a little over 25 per cent on day one The share which listed on Thursday closed with gains of over 35 per cent at the end of the weekA primary moveThe week ahead sees two primary market issues The first is from the power exchange IEX The cash rich company is offering shares through an offer for sale to raise just about Rs 1000 crore in a price band of Rs 16451650 The issue opens on Monday October 9 and closes on Wednesday October 11A big openingThe week also would see the opening of the largest IPO in 20172018 so far from General Insurance Company of India Limited The company is tapping the capital markets with its simultaneous fresh issue and offer for sale of 1247 crore shares in a price band of Rs 855 to 912 There is a discount of Rs 45 for retail investors and employees of the company The issue size would be Rs 1066185 crore to Rs 137264 crore The issue is priced at a PE multiple of 2497 timesSee huge growthAllotment in the retail category for all those who apply for one lot is assured as the size entails 27 lakh applications The previous best in applications was in the issue of Cochin Shipyard where under 21 lakh applications were received To add to ones comfort is the fact that retail investors and employees would get a discount of Rs 45 There would also be a spill over from HNI category into QIB and Retail The issue is well priced and the business is compellingWith huge under penetration of insurance whether it is life or general insurance in India and the same set to grow there is only one way for reinsurers Grow the business and one could see huge growth going forward Markets would wait for results to be announced which would begin in the next 10 days Market mood indicates that they expect positive results in the quarter this time around This expectation is the same over the last 1012 quarters For the good of the market and the momentum to continue I hope the feeling is right Brace for increased volatility going forwardArun Kejriwal is founder of the Mumbaibased advisory firm Kejriwal Research amp Investment Services Pvt Ltd Disclaimer No financial information whatsoever published anywhere in this newspaper should be construed as an offer to buy or sell securities or as advice to do so in any way whatsoever All matter published here is for educational and information purposes only