Stock market listings in the ongoing turbulent phase have not only become a dreaded dream for corporates planning to raise money from public, but are turning out to be inauspicious for the benchmark Sensex too -- the recent trends on the bourses show.
An analysis of recent movements on the Bombay Stock Exchange's 30-share Sensex shows that in the past few months a new company gets listed in the market, the barometer index is most likely to plunge into the red.
More importantly, this trend has been followed even during the high-profit listings like Reliance Petroleum and Sun TV. While the two companies recieved a warm welcome from the shareholders and were listed at huge premiums over their issue prices, they still proved to be a bad omen for the benchmark Sensex.
RPL debuted on the BSE at a huge premium of nearly 70 per cent over its offer price of Rs 60 per share on May 11.
However, the Sensex registered a huge loss of 177 points that day, which marked the beginning of a sharp downslide on the bourses that pulled back the index to below the 8,800-point level from a peak of 12,671.11 on May 10.
Similarly, Sun TV debuted at a premium of nearly 27 per cent over its issue price of Rs 875 on April 24 when the market was still in its record-breaking bullish phase. But, the Sensex lost a whopping 268 points during Sun TV's debut trading session.
Situation has been even worse during the more recent listings, with a few exceptions like Allcargo Global Logistics which was listed on June 23.
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