Record Highs for Sensex and Nifty: A Historical Day for the Stock Market
On September 12, the Indian stock market witnessed a remarkable surge as both the Sensex and Nifty indices reached record highs, defying market expectations. This upward trajectory was significantly influenced by the recent initial public offerings (IPOs) that captured investor interest and confidence.
The IPO Impact on Market Performance
Among the notable IPOs was that of Bajaj Housing Finance, which attracted substantial investor attention with bids totaling a staggering Rs 3.24 lakh crore aimed at raising Rs 6,560 crore. The overwhelming response did not stop there; two additional IPOs, Kross and Tollins Tyres, also garnered impressive subscription levels. Collectively, these IPOs saw a staggering amount of approximately Rs 4 lakh crore blocked, which indicates a significant commitment from investors.
Understanding the ASBA Process
The Application Supported by Blocked Amount (ASBA) system plays a critical role in this process. When investors apply for an IPO, the corresponding amount is temporarily blocked in their bank accounts, ensuring that these funds cannot be utilized elsewhere during the application period. If shares are allotted, the blocked amount is then debited. In cases where applications do not receive allotments, the funds are released back to the investorโs account promptly. This mechanism not only protects investor interests but also potentially enables a flow of capital back into the market, further fueling the rise of the Nifty and Sensex indices.
Contributions of Large Cap Stocks
On this significant day, large-cap stocks made a substantial contribution to the overall market rise. Key players such as Reliance Industries, HDFC Bank, Bharti Airtel, Infosys, and SBI saw their shares close with notable gains, enhancing the bullish sentiment in the market. Notably, all the companies listed within the Nifty 50 index recorded positive movements in their share prices. Additionally, September 12 coincided with the weekly expiry of Nifty 50 contracts, a periodic event that often brings about increased trading activity and market adjustments.
Conclusion
The events of September 12 stand as a testament to the robust health of the Indian stock market, driven by significant IPO activities and the performance of high-profile large-cap stocks. As IPOs continue to attract investor enthusiasm, the overall market outlook remains positive, offering exciting opportunities for traders and investors alike.
