Only about one-third of the stocks listed in this fiscal have held their IPO price
The novel coronavirus seems to be one of the biggest threats to the market right now.
Many stocks have hit their multi-year lows in current market turmoil. Stocks listed in the last year have also plunged sharply from their all-time high levels.
Only about one-third of the stocks listed in this fiscal have held their IPO price.
Overall it was not a good year for the primary market, but still 17 companies were listed on bourses during the year, while 3 companies (Dinesh Engineers, KPR Agrochem and Antony Waste Handling Cell) withdrew their IPOs.
Indian Railway Catering & Tourism Corporation (IRCTC) was the 'biggest gainer' of Dalal Street (and also among listed companies of FY20) with 192 percent rally from its IPO price of Rs 320 per share.
E-commerce company Indiamart Intermesh and diagnostic chain Metropolis Healthcare were second and third biggest gainers among FY20 listed firms, rising 87 percent and 44 percent, respectively, from the issue price.
Neogen Chemicals, Polycab India and Affle (India) too traded 58 percent, 37 percent and 32 percent higher over their issue price, respectively, while Vishwaraj Sugar Industries was 7 percent higher from its IPO price.
SBI Cards and Payment Services, the only listed stock in 2020 so far, was the victim of the COVID-19-led fall.
All the above-mentioned stocks dropped 20-90 percent from their respective record-high levels touched during the year.
Overall the sentiment has been bruised in last three months. Lot of issues lined up for opening but due to weak market conditions, they deferred their IPOs including Rossari Biotech, Burger King etc.
Experts feel the revival in the primary market is largely dependent on the recovery in sentiment and secondary market which is expected to be volatile till the COVID-19 recedes.
"Currently, we are nowhere close to overcoming the COVID-19 crisis. If we see a peak in cases in India and globally for another two to three weeks, (as we saw on Thursday in India when the highest number of people died in a day) then we could see the Nifty dropping back and might possibly even break its recent low," Gaurav Garg, Head of Research at CapitalVia Global Research Limited- Investment Advisor told Moneycontrol.Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.