How is Indian stock market going?

It’s good to find Indian stock market has started to roar again after a lull of consecutive months (owing to nine-month slump) and all, including corporate India, are having a sigh of relief. The best specimen of this can be found in the renewed initiatives of Indian companies along with their bankers. They, for the moment, are busy in lining up a series of initial public offerings to strike into the rising confidence of foreign and domestic investors in the Indian market. It is to be noted that the benchmark S&P Nifty stock index is up about 80 percent since early March.

Want to know more? On Friday, a power company was likely to close a $625 million offering, the largest I.P.O. in the country in the recent times. What’s more, only on Thursday afternoon, orders had been placed for nine times as many shares as the company, Adani Power, was offering.

This has led to a great interest among an assortment of stakeholders and it is expected that the Adani Power deal would be quickly followed by a $1.25 billion offering by a state-owned hydroelectric power company. Other companies planning to sell shares include a state-owned oil company, an electric scooter firm and a wedding products company.

Commenting on this, Chengalath Jayaram, Executive Director at Kotak Mahindra Bank said,
“Right now it looks very good for I.P.O.’s.” “For investors’ point of view, there is a lot of pent-up demand.”

Adani Power, which is building two large power plants in western India, is part of a conglomerate, Adani Group, that is also involved in ports, coal mining, real estate, power trading and agriculture processing. The company is based in Ahmedabad, a western city north of Mumbai.

“Certainly there is no frenzy either among institutional investors or retail investors,” said A. Murugappan, an executive director at ICICI Securities. “They are slowly getting their confidence back.”