Global tension throws its shadow on India, resulting in a big fall

This photo released from N Koreas Korean Central News Agency KCNA shows an antiUS rally in Kim IlSung Square in Pyongyang Pic AFPMarkets had a bad outing on Friday and geopolitical tensions saw them registering their biggest fall in the calendar year 2017 BSESENSEX lost 35017 points or 109 per cent to close at 3192244 points The markets were up at the end of Thursday on a weekly basis by about 100 points on the Sensex NIFTY lost 121 points or 120 per cent to close at 996440 points The broader indices saw the BSE100 BSE200 and BSE500 lose 154 per cent 166 per cent and 173 per cent respectively BSEMIDCAP lost 227 per cent and BSESMALLCAP was down 237 per centThe only gainerThe only gainer amongst sectors was BSEHEACARE up 073 per cent The top loser was BSEREALTY down 570 per cent followed by BSEMETAL 478 per cent and BSECONDUR 301 per cent In individual stocks the top gainer was Dr Reddyrsquos up 1005 per cent followed by Bharti Infratel 422 per cent The top loser was ACC down 764 per cent followed by Gujarat Ambuja Cements 769 per cent and Hindalco 687 per cent While Indian markets were battered the US closed last week with gains Dow Jones was up 8125 points or 111 per cent to close at 2234959 points The Indian rupee lost 72 paisa or 112 per cent to close at Rs 6479Full of actionThe week gone by saw a lot of action in the primary market there were three listings and two issues closing for subscription A third issue opened for subscription on Friday and closes on Tuesday September 26 The first issue to lose was Dixon Technologies where shares were issued at TRs 1766 and the issue closed the week with gains of 50 per centThe second issue was Bharat Road Networks Limited which listed on Monday along with Dixon and closed with losses of 6 per cent The issue was priced at R 205The third issue to list was Matrimony the marriage site which issued shares at R 985 and listed on Thursday This company had given a discount of R 98 to retail investors This issue closed with losses of 16 per cent for the weekOpen season nowThe two insurance giants had their issues open during the week These were ICICI Lombard and SBI Life Insurance Company Limited Both issues were subscribed on the back of institutional support Noninstitutional response was muted and certainly much less than expected ICICI Lombard was subscribed 298 times with the HNI portion remaining undersubscribed It was the QIB portion subscription which was subscribed 817 times which saw the issue through The company is raising money through the offer for sale in a price band of R 651661 The issue is expected to list in the week and is likely to be under pressure on Day One itselfEye on insuranceThe second issue was from SBI Life Insurance which had a similar fate and performance The issue was subscribed 358 times with QIB portion subscribed 1256 times HNI retail and shareholder quota were under subscribed Here again the issue was an offer for sale in the price band of R 685700 and was extremely expensive The share is likely to be under pressure when it is listed and would happen just before the chief of SBI retiresTrack the snackThe issue which opened for subscription on Friday was snack maker Prataap Snacks which closes on Tuesday TheRs 930938 The company reported a topline of R 900 crore for the year ended March 2017 Its profits were very subdued due to the sharp rise in prices of its two key ingredients namely edible oil and potatoes The PE multiple at which shares are being offered after this one time hit of about R 20 crore last year and is about 196 times The company sells its products under the Yellow Diamond name The company merits investmentFeeling the heatThe week ahead will see September futures expiring on Thursday With four trading days to go the current lead is a mere 46 points or 047 per cent This could go either way and one needs to be cautiousGeopolitical tensions seem to have hit India much more than the world and things could get rough going into expiry day Maintain light positions and look to buy in sharp dips that may happen during this week Also the listing of ICICI Lombard this week and SBI Life next week will have a bearing on the direction markets takeArun Kejriwal is founder of the Mumbaibased advisory firm Kejriwal Research amp Investment Services Pvt LtdDisclaimer 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