Where do we go now?

Union Finance Minister Arun Jaitley with Chairman of the General Council of Liberal Democratic Party of Japan Hiroyuki Hosoda and members of the JapanIndia Parliamentarians Friendship League in New Delhi PicsPTIThe markets continue to be a mixed bag and are unsure which way they want to move Volatility is increasing and intraday and intraweek movements have increased significantly The week gone by saw markets under pressure but for the decision by Fed to keep interest rates unchanged this time helped markets gain Post the Fed decision on Thursday our markets saw BSESENSEX gain 266 points and NIFTY 90 points Had this not happened markets would have ended in negative territory for the weekThe BSESENSEX gained a tad at 6919 points or 024 per cent to end the week at 2866822 points NIFTY gained 5170 points or 059 per cent to close at 883155 Markets are yet to breakout from the gap down opening of September 12 and are currently struggling in that zone The broader markets saw the BSE100 BSE200 and BSE500 gain 067 per cent 085 per cent and 090 per cent respectively The BSEMIDCAP gained 216 per cent and BSESMALLCAP was up 152 per cent There continues to be lot of action in this space and this is where potential trouble for investors could emergeBulls are coolThe top sectoral gainer was BSEMETAL up 346 per cent followed by BSEOILampGAS 308 per cent and BSEREALTY 192 per cent The losers were led by BSEFMCG down 145 per cent and followed by BSEIT 026 per cent In individual stocks the top gainer was Hindalco up 773 per cent followed by Yes Bank 548 per cent and Vedanta 474 per cent The OMCs too had a good week with HPCL up 475 per cent BPCL 443 per cent and IOC 244 per cent The losers were led by Axis Bank down 729 per cent followed by Lupin 319 per cent and ITC 252 per centThe Dow Jones gained 13765 points or 076 per cent to close at 1826145 points The Indian Rupee gained 33 paisa or 049 per cent to close the week at 6665 The week ahead sees September futures expire on Thursday September 29 Bulls have an upper hand with current value of NIFTY being higher than the expiry level by 23935 points or 279 per cent While bulls have the advantage we have seen on a number of occasions that the NIFTY is capable of swinging 100 points per dayEye on issuesThe primary market continues to see a lot of traction The mega issue from ICICI Prudential Insurance Company limited which had an offer for sale of 1813 crore shares in a price band of Rs 300334 was oversubscribed 1048 times QIB portion was subscribed 1183 times HNI 2855 times retail 142 times and shareholder reservation category 1220 times The shareholder category saw HNIs leveraging and applying in this category The funding cost here will be less than half that in the HNI category as that was oversubscribed 2855 times against 1220 timesThe listing of LampT Technology Services Limited survived by the skin of its teeth after being labelled a disaster The issue which was priced at Rs 860 opened at Rs 900 on the BSE and at Rs 920 on the NSE The low of the share on the BSE was Rs 860 and it was Rs 86010 on the NSE The share in weighted average close of the last half hour rose to Rs 86510 on the BSE and Rs 869 on the NSE There was just one institutional buyer for the share whose name was reported in bulk trade and probably because of this 11 lakh shares which were bought the share survived day one Whether it would survive Monday or the coming week looks most unlikely The brand LampT is under threat and investors seem to be simply shying away from itCues and viewsThere is another issue which has opened and is closing for subscription today The issue is from HPL Electric amp Power Limited The company is making a fresh issue for Rs 361 crore in a price band of Rs 175202 The company is into four verticals namely metering Switchgear Lighting Equipment and Wires and Cables The objects of the issue are to repay existing debt and for working capital purposes The company has a stretched working capital cycle of roughly 144 days and proceeds of the issue would be deployed for the same thus giving relief The debt would reduce the interest cost and help improve the bottom line The debt was taken to increase the capacity and they have no capacity constraint going forward as plenty of the same is availableThe issue has been subscribed 29 per cent with Monday being the last day QIB portion 36 per cent HNI 1 per cent and retail 37 per cent The system has always been that the subscription from HNIs and QIBs come on the last day and then retail chips in The company is in a niche segment and has different competitors in different segments While the opportunity going forward is huge the key is managing working capital cycle There are mixed views about this issue about whether the issue would perform well and reward shareholdersinvestorsThe markets will remain choppy in the coming week and the final attempt to make a new alltime high may be made this week In case it fails then time will be running out and things would become that much more difficult Trade cautiously and continue to take money off the tableArun Kejriwal is founder of the Mumbaibased advisory firm Kejriwal Research amp Investment Services Pvt Ltd Readers are invited to read more about these and other issues on his website httpak57inDisclaimer No financial information 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 and under no circumstances should be used for actual trading Readers must consult a qualified financial advisor prior to making any actual investment or trading decisions based on information published here Any reader taking decisions based on information published here does so entirely at his or her risk