US Stocks recovered from early losses after Federal Reserve commented that quantitative easing may be needed for a longer period than anticipated.
Asia starts the day stronger
Nikkei climbed Wednesday morning as a surprise jump in the Japan's August core machinery orders provided a lift to technology and auto shares. Else where in the region Korea's Kospi and Austrailian markets are trading decently up.
Coal India IPO
Stage has been set for the blockbuster IPO of the year. Price band for Coal India IPO was set at Rs 225-245 price band which will help it raise as much as Rs 15,200 crore, surpassing the Rs 11,600-crore record set by Reliance Power in 2008. Coal India staff and retail investors will get a 5% discount to the final price.
At the top end of the band, Coal India would be trading at 12 times the forward-year earnings forecast. Coal India would be the world’s biggest listed coal producer.
Pricing of the IPO will lure both domestic, retail and foreign investors to the Issue. But the impact might be felt on the secondary market.
IIP data overhang, Coal India IPO and Infy to dictate terms
While IIP data overhang still exists, Infosys numbers on Friday might dictate short term movement in the market. No doubt Coal India IPO will take the sheen out of secondary market as investors might sell their holdings to subscribe for the IPO. We see a subdued movement for the next 1-2 weeks with a negative bias. For today market is expected to trade in the green, marginally though.
Stick to quality midcap and smallcap stocks.