Don't expect great momentum in secondary market

Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See what other CNBC-TV18 anchors have to say Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

The start of the week was okay but it sort of flattened out towards the end yesterday, said CNBC-TV18's Managing Editor Udayan Mukherjee. "Global markets too seem to have flattened out so don't expect great momentum. The market is fine, it is holding above 5,100 but there is a clear absence of momentum in price and volume. So we may just have to amble through a few boring days for the secondary market while all the action gets hogged up by the primary market once again."

Here is a verbatim transcript of Udayan Mukherjee's comments on CNBC-TV18. Also watch the accompanying video.

Q: It is the season of money raising?

A: Yes, I think a little bit of a March lull is setting in for the secondary market and most of the action will probably happen in the primary market once again. And, as we have seen for the last few months whenever big primary issuances come up, the secondary market is robbed of some kind of momentum-it is just not there because the force of money is not there. So I think we may just about hold a range but as you saw yesterday, it is a positive kind of range for the market. So it is not like correcting or anything like that but you may just go flat and subdued for a few days till all this large primary paper is absorbed.

Q: What about the markets?

A: We are moving at a very sedate pace and this too in a regime where we are getting more than Rs 1,000-1,100 crore of FII flows everyday. Even yesterday's number is Rs 1,100 crore. So with that kind of money flow to see the market moving up 15-10-20 points a day with general low volume trade suggests that maybe the market is in a positive kind of range but has not made up its mind about a big breakout and a dash just quite yet.

So I think what might happen now is that the Nifty does not correct significantly but it holds a positive range. I don't know maybe it is 5,000-5,200 or a little bit lower or higher than that. Within that the kind of stocks Mr Sudarshan Sukhani was talking about even yesterday a lot of the new listed initial public offering (IPO), recently listed IPOs etc and good quality midcaps did fairly well because there is a hangover for the Nifty of the paper which is coming in. It is not just NMDC, you have seen the quantitative institutional placement (QIP) gets open up again with a couple of them like Exide and India Cements.

So I think there will be a lot of issuance over the next few weeks and that might keep the index range bound and not give it that momentum that you want to see to get pass 5,300.