Sensex and Nifty closed at record highs on September 12, contrary to expectations. An IPO played an important role in this boom in the stock market. In early trade, Nifty was struggling to cross the 25,000 mark, but after 2 pm the market became one-sided. Apart from Bajaj Housing Finance, IPOs of two more companies played an important role in this rise.
Sensex and Nifty closed at record highs on September 12, contrary to expectations. An IPO played an important role in this boom in the stock market. In early trade, Nifty was struggling to cross the 25,000 mark, but after 2 pm the market became one-sided. Apart from Bajaj Housing Finance, IPOs of two more companies played an important role in this rise.
Bids worth Rs. 3.24 lakh crore were submitted for Bajaj Housing Finance’s IPO, through which it was intended to raise Rs. 6,560 crore. Two other IPOs- Kross and Tollins Tyres also received excellent subscriptions. Wealth worth about Rs. 4 lakh crore was blocked in these IPOs.
According to the ASBA system, while applying for an IPO, the relevant amount is blocked in the bank account and cannot be used anywhere else. If the IPO is allotted, the amount is debited. If there is no allotment, the amount blocked in the bank account is immediately freed. It is possible that this freed amount has been invested in the market and there is scope for an increase in Nifty and Sensex.
Large-cap stocks played an important role in the rise in the stock market on September 12. Reliance Industries, HDFC Bank, Bharti Airtel, Infosys, and SBI played an important role in the rise in the market. Shares of all the companies included in the Nifty 50 index closed with gains. September 12 was the day of weekly expiry for Nifty 50 and this event also contributed to the recovery.
