Tale of the Tape 

Howdy folks.

Markets were at their boring best. Nifty and Sensex traded sideways before some late choppiness saw them give up all the gains and end FLAT. Midcaps (+0.3%) and Smallcaps (+0.4%) had a better day. The advance-decline ratio was in favour of the bears (3:2). Check out the Stocktwits Sentiment Meter:

Most sectors ended in the red. NBFCs (+0.8%) and Banks (+0.5%) saw the most buying. Energy (-0.7%), Metals (-0.6%) and Real Estate (-0.5%) witnessed selling pressure.

Just how wild has India’s IPO party been and what lessons does it offer? Read our top story below on SEBI’s new study.

This tile-maker stock could rally +37% over the next year. Find out more below.

Kaynes Technology, FIEM Industries and HAL all saw big movements today. Check out their charts to find out why.

Premier Energies had an insane market debut, ending the day +86% over its IPO price of Rs 450 p/sh.

Zee Entertainment fell -4% after its chairman Subhash Chandra accused the SEBI chairperson of corruption.

Aadhaar Housing Finance (+8%) soared after Kotak Securities initiated coverage on the stock; the brokerage sees a +31% upside from current levels.

Matrimony.com (+6%) hit a 52-week-high after it said it would consider a share buyback proposal on September 5.

Adani Green Energy (-3%) slipped despite announcing a $444 million JV with TotalEnergies.

Signature Global cracked -5% after 57.2 lakh shares (4.1% equity) changed hands in a block deal; the buyers and sellers were not immediately known.

Here are the closing prints:

IPO
India’s IPO Scene Is Wild!

Everyone knows how crazy India’s IPO party has become. The frenzy has been somewhat justified too: of the 144 mainboard IPOs listed between April 2021-Dec 2023, 75% of them delivered positive returns! As many as 26 public offers delivered +50% returns on listing day itself. This is why we see HUGE oversubscription figures, with everyone hoping for a listing pop. A new study from SEBI confirms this. Here are its top takeaways: 

1) Quick selling: Irrespective of returns, individual investors sold over 50% of shares (in value terms) allotted to them within a week of listing. Contrast this to mutual funds, which sell only 3% of what is allotted to them within the same time-frame.

2) Higher and lower: When returns are more than 20% after a listing, individual investors sold 68% of shares by value allotted to them within a week. When returns are negative though, investors sell only 23%, implying that yes you automatically become a long-term investor if the IPO flops.

3) Geographic divide: Over 50% of retail investors who get IPO share allotment come from just three states. They are Gujarat (39.3%), Maharashtra (13.5%) and Rajasthan (10.5%). It’s probably because there are just a lot more investors in these three states, but who knows, maybe moving there will increase your chances in the IPO lottery!

Big Picture: As long as a majority of IPOs deliver listing day gains, we’re going to see huge oversubscription levels. A note of caution though, no one knows how long this “easy money” party will continue. When the tide reverses make sure you’re not the one bag holding.

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5 Stocks To Buy In September - By SEBI RAs

Markets are at all-time highs but don’t know where to invest? In this video, we cover 5 mid & smallcap stocks which can give up to 30% returns from current levels.