Street signs: Brokers up margin, KPR Agro IPO pull-out dulls mood, and more

Illustration by Binay Sinha
Will big MFs get bigger?


Shares of HDFC Asset Management Company (AMC) gained over 15 per cent in June. The gains have come despite the turbulence faced by the mutual fund (MF) industry and tightening of regulatory norms, which are expected to make a dent in industry assets. Analysts say the surge in shares of HDFC AMC is an indication that the Street expects bigger players to benefit from the recent events in the Rs 25-trillion MF industry.

“Corporate defaults have shattered the confidence. Investors would want to stick with fund houses with solid backing. This will benefit big MFs such as HDFC AMC,” said an analyst. Shares of HDFC AMC, which listed a year ago, are currently up nearly 90 per cent over their IPO price


Samie Modak


Brokers up margin before Budget


Broking houses are asking clients to cough up higher margins ahead of the Union Budget this Friday. The move is a safeguard against an unexpected spike in volatility if the Budget disappoints. “The market is pinning high hopes on the Budget. If there is any disappointment, we could see stock prices correcting, especially in the mid and small cap space,” said a broker. The margin funding scene has been tough for the last few months due to corporate defaults and the liquidity crunch as a result of the crisis in the non-banking finance sector


Sundar Sethuraman


KPR Agro IPO pull-out dulls mood


At least two small-sized companies poised to launch their initial public offerings (IPOs) have applied brakes on the plans. The surprise pull out of KPR Agrochem’s Rs 283-crore IPO last week has led to second thoughts among IPO aspirants. According to sources, KPR Agrochem decided to withdraw its IPO due to tepid response from institutional investors. “It is not clear whether investor sentiment is conducive for the revival of the IPO market. We are keeping our plans on hold for now,” said a banker requesting anonymity


Sundar Sethuraman

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel