We have seen the market logging gains in the last two December. Will it make a hat-trick of rallies or will the Omicron threat prevail this December? Let's find out what market experts expect
The frontline Sensex has bounced back nearly 1,400 points in two days, staging a recovery from one of the worst bear drubbings in months.
On Thursday, the index ended at 58,461 levels, up 776 points on the BSE, lifted by healthy buying in HDFC twins, RIL, and IT stocks.
The NSE Nifty, on the other hand, is back above the 17,400-mark.
Meanwhile, in the primary market, ace investor Rakesh Jhunjhunwala-backed Star Health and Allied Insurance’s initial public offer closed with a 79% subscription (till 6:30 pm). Among IPOs of more than Rs 5,000-crore plus, Star Health has seen one of the weakest responses.
According to AK Prabhakar, who is head of research at IDBI Capital, Star Health failed to attract investor interest as the valuation seemed rich and left nothing much on the table for investors.
The IPO came at a time when fears of the Omicron Covid variant started. This, he says, may have made investors wary of investing in an insurance-related play.
That said, the IPOs of Anand Rathi Wealth and Tega Industries received a healthy investor response and have already been fully subscribed.
So, will this recovery in the secondary market gain momentum go ahead? Let’s find out.
Despite a 3.8 per cent fall in November, the BSE Sensex stands tall with a 19.5 per cent gain at the start of December 2021.
Over the past 11 months, market participants have negotiated many headwinds successfully such as the rampant spread of a second Covid wave, boiling crude oil prices, inflationary pressures, and fears of policy tightening and withdrawal of government stimulus.
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