According to analysts and market experts, investors should hold the stock for a longer period.
Astha Jain of Hem Securities said that the issue was quite undersubscribed by retail and HNI investors and their remaining portion was allocated to institutional investors, who usually have a longer investment horizon.
“There is a lack of supply as the number of sellers are limited, which has capped the downside in the counter post listing,” he added. “We expect it to remain in the range of Rs 500-550 for sometime.”
After a poor listing, Nuvoco Vistas Corporation recovered most of its losses and hit an intra day high of Rs 550. However, analysts are bullish on the counter in the longer run.
“The company has a strong market share with good brand names and decent financials. Investors can hold this stock for the long term on the back of a bullish outlook on the sector and strong market share,” said Santosh Meena, Head of Research, Swastika Investmart.
Amit Jain, chief strategist of Ashika Group and co-founder of Ashika Wealth Advisory, said investors can average at lower prices for their long-term investment portfolio. He is optimistic on the government’s infrastructure push.
However, the recent tepid listings and hammering of broader markets has jittered investor sentiments in the primary market. Analysts are suggesting investors to be cautious while bidding for IPOs to make a quick buck.
“We advise investors that they need to choose the right sector and price point before applying for any IPO,” said Amit Jain of Ashika Wealth Advisory.
“The liquidity is limited and the flood of issues are affecting the positions of the investors. They need to be more watchful before taking any decision,” said Astha Jain of Hem Securities.
