Markets close negatively, traders warn people to 'tread lightly'

Volatile times call for deft nimble movements The markets were volatile last week and even though we lost on just two of the five trading days the week ended in negative territory Even on the two days that market recorded losses they had opened gap up and then surrendered the gains and ended negative The BSESENSEX lost 371 points or 111T to close at 3331456 points NIFTY lost 13075 points or 127 per cent to close at 1032175 points The broader indices like the BSE100 BSE200 and BSE500 lost 126 per cent 121 per cent and 119 per cent BSEMIDCAP lost 091 per cent while BSESMALLCAP lost 120 per centCelebrations post revision of GST tax slab in Patna PicsPTIIt figuresThe top sectoral gainer was BSECONDUR up 937 per cent followed by BSEIT 326 per cent and BSETECK 170 per cent The top loser was BSEHEACAR down 485 per cent followed by BSEOILampGAS 341 per cent and BSEREALTY 294 per cent In individual stocks the top gainer was Mah amp Mah up 445 per cent followed by Hind Unilever 411 per cent and Infosys 354 per cent The top loser was Lupin down 2578 per cent followed by Bharti Tele 788 per cent and Reliance Industries 701 per cent The Indian Rupee lost ground and weakened 64 paisa or 096 per cent to Rs 6516 to the US Dollar Dow Jones also lost ground down 11698 points or 050 per cent to 2342221 pointsBourse courseIn primary market news Shares of Reliance Nippon Life Asset Management Limited listed on the bourses and gained 1282 per cent at the end of the week Shares were issued at Rs 252 and closed at Rs 28430 at the end of the week Leveraged investors lost money in the issue as the cost of funding was Rs 5556 and the gains made on listing were about Rs 37 The other company whose shares were listed was Mahindra Logistics Limited and they struggled to close above issue price Shares which were issued at Rs 429 ended a tad higher at Rs 42915 and in the process the merchant bankers avoided being classified as a share which closed below issue price on day one One can be sure that the small change above issue price was a concerted effort by the people who would have got affected by the sameIssue viewThe issue from Khadim was just about subscribed at 190 times The QIB portion was subscribed 244 times and Retail 233 times while HNI was undersubscribed 018 times The other issue open for subscription was the mega issue from HDFC Standard Life Insurance which was subscribed 490 times and received excellent institutional support The QIB portion was subscribed 1660 times while HNI was subscribed 229 times Retail and shareholder quota remained undersubscribed The issue which was to raise Rs 8695 crore garnered interest of Rs 33570 crore Clearly the name HDFC did the trick and the fact that investors in the two listed entities HDFC and HDFC Bank have made huge returns in these two stocksCut downWith one eye on the state elections and the other on the economy the GST council has pruned drastically the number of items in the 28 per cent GST bracket They have removed 178 items from the top slab and brought them down to 18 per cent This leaves just 50 items in the 28 per cent bracket In a significant move all eating housesrestaurants have been brought into the 5 per cent bracket and no input credit would be given This piece of news would be welcomed by Mumbaikars as eating out is a necessity for the hustle bustle of Mumbairsquos lifestyleLook outIn the week ahead shares of New India list today Monday followed by HDFC towards the end of the week The week is also to see the ETF issue Bharat 22 from the government As the name suggests the ETF Exchange Traded Fund would comprise a basket of 22 stocks and would be traded on the Exchange on alive basis The maximum amount to be divested would be R 10000 crore All investors would be offeredallotted units at a 3 per cent discount to the weighted average traded value of each stock over three trading days when the issue is open The issue opens on Wednesday November 15 and closes two days later on Friday November 17Raising moneyThe highest fund raising through IPOs was in 2007 when roughly 35000 crore was mopped up This year with about 45 days to go a sum of about Rs 65000 crore has been mopped up and of this roughly 45000 crore has been through the five insurance companies Till last year insurance was the sunrise sector and everyone was looking forward to these issues There has been an overkill of these issues and the effect on the markets is telling Of the five issues three have listed and two of them are trading at a discount while of the remaining two New India would be listing on Monday followed by HDFC Standard Life towards the end of the weekCaution advisedMarkets would be more volatile in the coming week with geo political tensions increasing Besides rising crude oil prices the possibility of a default in Venezuela is looming large This would certainly have an impact on global markets It therefore makes sense to remain light in commitment and use sharp movement to enter and exit the marketsArun 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