Power Grid Corp Of India (PWGR IN): Aggressive Capex Target for FY19, Can It Deliver?

India: GST Collections Still Below Trend, Incipient Signs of Fiscal Stress

India Economist/Strategist

Ashutosh Datar

Thematic (Sector/Industry)

<p>India’s primary capital markets have cooled off significantly in the last few months. Total equity capital raised this year (FY19) is likely to be the lowest in last 5 years with number of IPOs likely to fall by 60%, at current run rate. This slowdown in primary capital market activity reflects the fact that volatility has increased sharply in the secondary market which has brought back to the fore the risk aspect of equities. But equally, this reflects the fact that IPOs themselves have underperformed in a still relatively benign equity market. This cooling off has short-term negative implications for the the secondary market as well as to the economy given the nascent recovery and large disinvestment program of the government. But equally the relatively benign cooling off of parts of the market has a silver lining to it.</p>

India’s primary capital markets have cooled off significantly in the last few months. Total equity capital raised this year (FY19) is likely to be the lowest in last 5 years with number of IPOs likely to fall by 60%, at current run rate. This slowdown in primary capital market activity reflects the fact that volatility has increased sharply in the secondary market which has brought back to the fore the risk aspect of equities. But equally, this reflects the fact that IPOs themselves have underperformed in a still relatively benign equity market. This cooling off has short-term negative implications for the the secondary market as well as to the economy given the nascent recovery and large disinvestment program of the government. But equally the relatively benign cooling off of parts of the market has a silver lining to it.

India: IPO Market Cools Off