Sensex fall shocks grey market

TNN / Jan 22, 2008, 02:05 IST

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Not a single transaction was registered in the grey market here on Monday as majority of operators were left gasping for reasons for the fall.

AHMEDABAD: The bustling Ahmedabad grey market reacted with shock to the bloodbath in the stock markets on Monday. Market operators, who are normally agile in fixing premiums, refrained from taking any new positions as the news of the crash began pouring in.
Not a single transaction was registered in the grey market here on Monday as majority of operators were left gasping for reasons for the fall.The premium on Reliance Power IPO has plummeted to Rs 205 per share from Rs 250 that was seen on January 18.
Even at this rate of premium, there were no transaction on the Reliance Power counter. Operators were busy calculating the losses they incurred in the stock markets.
The mood at Future Capital counter, which witnessed transactions at a premium of Rs 500, too was sombre as operators were not willing to bet due to uncertainty in the official stock markets.

Reliance Power IPO, which had resumed trading on January 3 with a premium of Rs 380 that went up to Rs 450 few days ahead of the opening of IPO, has shed over 50 per cent premium. Reliance Power IPO is expected to be listed in second week of February but operators say that if the bearish sentiments continue, investors may not get the desired listing gains.
Their negative take on the Reliance Power IPO stems from the fact that power stocks like NTPC and Reliance Energy too suffered as much as 15 % loss in the bloodshed.
The mood in the grey market is expected to remain gloomy for the next few days till the stock markets see some signs of recovery.
"Retail investors are not expected to participate in huge numbers as before and this bloodshed is going to have an impact on the forthcoming IPOs too," said a grey market operator.

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