While the markets are making life time highs, BSE and MCX stocks seem to be making new lows. Any views on this?
BSE performance
MCX chart
Stocks of ‘BSE’ were held by a lot of entities including stock brokers and other corporate prior to it’s IPO and listing on the Stock Exchange. Brokers were given the option of selling their Equity shares as part of the Offer for Sale.
All such stocks that weren’t sold through the OFS, held pursuant to the IPO were locked-in from transfer for a period of one year from the date of allotment.
The allotment of BSE stocks happened on 1st Feb 2017. 31st Jan 2018 marked one year of completion of the lock-in period. Such stocks that weren’t offered in the OFS have been freed from the lock - in period today and are available for people to sell. Not wanting to sound conclusive, the BSE stock could be witnessing some selling pressure owing to people wanting to exit the stock.
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Like Venu says, maybe in the anticipation that the brokers will offload their holdings caused a drop in the price of BSE.
With MCX, the announcements on universal exchanges by SEBI the last few months means that NSE/BSE can start offering commodity trading. Once done, MCX may suddenly have tough competition. The stock has been factoring this news.
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