Indian Stock Market and Mutual Funds

t3chg33k said:
Not sure what to call this beyond gambling. No one would call looking for random listing gains as a trading strategy, so if you are doing that, then go ahead with it.

Swiggy was only the 3rd or 4th IPO I applied for this year and the first one that got allotted. However, didn't even check the price yesterday and probably wouldn't be selling now.
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Whenever we have past high returns in any market, people cant help themselves but gamble. ( Just look at crypto mania. Only actual use of crypto that i have seen is in fraud and crimes. ). US housing blow up was the same.
Have seen it multiple times and have also done it once. Only after some losses people learn ( or stay away ). Some ofc cant help themselves and blow up and then blame everyone else.

But also, just because prices are high does not mean it wont go higher and sometimes they might be justified too based on future. Very hard to deal with all this unemotionally - either just buy and hold or do active trading with tested edge ( works only for < 1% of people).

So far from what i have seen, when people grow crazy chasing ipos, market top is nearby ( atleast for medium term perhaps). But no rule is 100%.
 
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TEUser2K1 said:
Doesn't this mean estimated gmp projection went wrong. Wondering how and why.
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SEBI has flagged several SME promoters manipulating their share prices and demand. Then you have all the "influencer" hyping up a specific stock because it is in a specific sector.

I suppose the primary reason is that the Swiggy IPO came at a time when in general discretionary spend has reduced. It is impacting all the consumer goods stocks as well in addition to many foreign investors pulling out of the volatile and overpriced Indian market in favor of US and China.

Lack of these factors led to very few retail purchasers opting for it, though institutional ones still did. The initial exuberance after listing is probably a sign of it being hyped up a bit, but it will probably not sustain. On the Flip side, you could say it is valued a lot less than Zomato presently, so there might be scope for growth, but not in the current market. If anything, Zomato valuation might get adjusted.
 
TEUser2K1 said:
Doesn't this mean estimated gmp projection went wrong. Wondering how and why.
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Yeah I guess. For the past year I only applied those IPOs which yielded more than 50% premium on grey market. Not that I got any other than 1 but still.
What to do with Ntpc green? Overvalued? You guys applying it? Current GMP is 3 rs lmao
 
guest_999 said:
Zomato started earning small profits too while swiggy losses still in thousand crore+.
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Yes, but Swiggy valuation is still lower than when Zomato listed and at that time Zomato losses were nearly the same. Shareholder pressure will make them cut costs now and they wouldn't be burning VC money anymore.
 
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