Bull Market Run - Ipos Galore

Bull Market Run - Ipos Galore

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The market has been witnessing a flurry of initial public offerings with the turnaround of the Indian markets. This, in the larger scheme of things, is the rational reaction with the Sensex hitting the 20,000 mark after more than two years.

The optimism has returned to the markets after a spell of dealing with inflationary pressures over the last two quarters as well as the impact from the Eurozone debt crisis. Several companies have come out with the issue offerings in a bid to make most of the Bull Run. It is not surprising to see private players make a bee line to garner liquidity, especially when the markets are up. The recent flood of small cap issues has left the retail investor spoilt for a choice, even though opinions are divided over subscriptions.

In addition, most of these small cap issues have opened with a premium on their debut. Does that indicate that anything can work in the Bull Market?

Small Cap IPOs: Will the trend last

Analysts believe that the trend will continue considering there is still a huge appetite especially for the issues of good companies. Additionally, in a Bull Market people are willing to take a bet unlike the risk aversion seen in the Bear Run. Moreover, with Foreign Institutional Investors (FII) pouring liquidity into the market the activity is expected to gain further momentum.

The swarm of issues, especially in the small cap segment, is being propelled by the retail investors. Considering the market sentiment has clearly rebounded, the drive for the smaller issues will come from the high net worth individuals (HNI) and retail investors. The institutional investors, on the other hand, will continue to concentrate on the bigger issues.


About the Author:
The author is Business Editor. Visit at www.religareonline.com to read more such stories.



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