Indian stock markets ended higher on Wednesday for the third straight day, with the Sensex and the Nifty closing 109 and 42 points higher to end at 28,452 and 8,786 respectively, NDTV reported. Intra-day trading also saw both indices register new 52-week highs, with banking and capital goods shares leading the day’s gains.
Maharashtra-based RBL Bank’s stock rose 36% on its debut day of trading, with the price of a share rising to Rs 305.5 from its issue price of Rs 225. After closing at Rs 299.4, its market capitalisation has now risen to more than Rs 11,000 crore, with its Initial Public Offering being subscribed nearly 70 times. UltraTech Cement was also among the day’s best performers, with its shares ending 3.5% higher at Rs 4,029. Kotak Mahindra Bank’s stock also rose by 2.64% after the Reserve Bank of India granted the Canada Pension Plan Investment Board approval to acquire shares above 5% (but below 10%) of the paid-up capital of the company.
A rally in domestic markets has led to a surge in new IPOs, with 2016 expected to be the best year (in the last six) for such offerings, according to NDTV. Yesterday, the Sensex ended trading 440 points higher, with the Nifty rising to a 16-month high after sharp rises in the stocks of banking and auto companies.