ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Fresh Issues Under Way

Operators were waiting, with some trepidation, for the Draft Outline of the Fourth Plan. Sentiment in the next few days will be affected by the interpretations and implications of the Draft Outline. No surprises were expected but stock markets cannot help taking a bearish view regardless of whether the resource gap, which is sizeable, is sought to be covered through deficit financing or additional taxation. Sentiment would be subdued if industry keeps on complaining about financial stringency.

Operators were waiting, with some trepidation, for the Draft Outline of the Fourth Plan. Sentiment in the next few days will be affected by the interpretations and implications of the Draft Outline. No surprises were expected but stock markets cannot help taking a bearish view regardless of whether the resource gap, which is sizeable, is sought to be covered through deficit financing or additional taxation. Sentiment would be subdued if industry keeps on complaining about financial stringency.

With the approaching end of the closed season for new issues, preparations are under way for offers of capital issues. Right now there is a fair enquiry for preference shares and it seems likely that many companies will take advantage of this interest and come out with 9.5 per cent preference issues. Some of the larger companies are also planning further issues of capital. There would be, without doubt, a bunching of capital issues during the last quarter of this year, as no major corporate issue can be expected to succeed in the first quarter of next year when attention would be focussed on the elections and the postelection budget.

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