Thanks to frenzy associated with the Initial Public Offer (IPO) of Reliance Power Ltd, majority of the listed stocks from the sectors like Non-Banking Finance Companies(NBFCs), finance and investment companies hit their all time high on Tuesday. Some prominent among them included Reliance Capital Ltd, Centrum Capital, Emkay Shares and Stock Brokers Ltd, Apollo Sindhuri Ltd etc. Heavyweights like Axis Bank, Indian Bank also touched their alltime high. Even the stocks of the listed broking firms posted good returns, though the overall markets were trading in negative.
Experts believe that most of the brokerage companies are going to gain from the series of IPOs that are going to hit the capital markets in near future.
Jignesh Desai, head, institutional sales, SBI Caps said, ?Banking and NBFCs are doing good business on the front of IPO financing as most of the investors prefer to take loan from these institutions to bid for the IPOs and also the broking firms tend to gain from this series of IPOs that are expected to hit the market soon.?
Some experts also believe that impending rate cut by the Reserve Bank of India (RBI) in its policy announcement on January 30 will also benefit these NBFCs. Also, the NBFCs have a sizeable portfolio investment in the secondary market. Looking at the Q3 results of the leading companies, their portfolio is expected to generate good return. All these factors have made these stocks attractive for the investors.
Other companies that saw good investors? interest were DGP securities, First Custodian Finance, DJS Stocks & Shares, VB Desai Financial Services, Masret Trust, Amani Trading, Manappuram Ggeneral Finance, BCC Finance, Fortune Financial Services, Paragon Finance, Maruti Securities, Dover Securities, Gogia Securities, Geeka Finance, Subhkam Corp, Abhinav Capital, Geeka Finance etc
The banking index, BSE Bankex lost 300.38 points or 2.39% to close at 12,258.42 points on Tuesday.