High-net worth individuals (HNIs) have been caught on the wrong foot with the two recent initial public offerings (IPOs) of TeamLease and Quick Heal. Buoyed by the grey market premium, several HNIs had placed leveraged bets on the two issues. However, as the listing of the two companies didn't go according to the calculations, these investors had to book losses. Shares of TeamLease slipped below the IPO price but later gained, to close 20 per cent higher on Day 1. Quick Heal shares plunged over 20 per cent on debut. Market players say HNIs and other investors might turn wary of IPOs in the near future.
Brokerages start cutting workforce
The high volatility in the stock market with a downward bias is beginning to hurt brokerages. Some of the leading domestic ones have started cutting their personnel count. According to sources, two brokerages recently sent mails to all team heads, asking them to prune their workforce. Last year, these brokerages were on a hiring spree. "Whenever the markets
go up by a few hundred points on the Nifty, brokerages are quick to announce grand hiring plans. As soon as the markets
go down, they are quick to sack," says an analyst, who hopes this downturn will be short-lived and hiring resume by the next quarter.
PSB bull turns bearish
A leading mutual fund manager who has been bullish on public sector banks (PSBs) for years seems to be running out of patience with their constant troubles. Market sources say he has been offloading stocks of some leading PSBs in the past couple of weeks that have hurt his schemes' performance. "He has held on to these stocks for years on faith that these banks are drivers of growth and will do well in good times. Things haven't worked out," says an industry player.