Trump Warns Iran of 'Greater Force' as Israel Shuts Airspace; Indian Stocks Brace for Monday Slump

  The escalating Israel-Iran conflict, now intensified by U.S. strikes on Iranian nuclear sites, has sent shockwaves through global markets. U.S. President Donald Trump, speaking from the White House, warned Iran of “greater force” if it retaliates, labeling the nation a “Middle East bully” and urging peace. With Israeli airspace closed and U.S. B-2 stealth bombers deployed to Guam, the situation is precarious. This article analyzes the potential negative impact on the Indian stock market come Monday, as geopolitical tensions threaten economic stability. Escalation of the Israel-Iran Conflict The conflict entered its second week with the U.S. confirming strikes on Iran’s Fordow, Natanz, and Isfahan nuclear facilities. These targeted attacks follow heightened hostilities between Israel and Iran, with Trump’s remarks signaling a hardline U.S. stance. The closure of Israeli airspace underscores the severity of the situation, disrupting regional trade and aviation routes. Iran’s potent...
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The IPO Market in 2024: A Record Year, but Investors Should Stay Cautious

 


2024 has been a remarkable year for the IPO market, showing impressive growth and attracting many investors. However, despite the surge in initial public offerings (IPOs), there are key reasons why investors must remain cautious before diving in. According to a report by The Economic Times, many companies that debuted this year have struggled to maintain their initial profits, with stock prices dropping significantly after a strong start. Let’s take a closer look at the state of the IPO market in 2024 and the factors investors should consider before making any decisions.

The Surge in IPOs in 2024

The year 2024 has set a new record for IPOs in India. By December 20, 81 companies had listed on the main board, raising a total of ₹1.5 lakh crore — a significant jump from the ₹50,000 crore raised in 2023. This has been largely driven by a bullish secondary market and sustained participation from foreign portfolio investors (FPIs). According to data from the National Securities Depository Limited (NSDL), FPIs have invested approximately ₹1.2 lakh crore in the primary market, while simultaneously selling ₹1.1 lakh crore worth of stocks in the secondary market.

This increase in IPO activity is largely attributed to a growing market and investor optimism. However, as the year progresses, there are some concerning trends that investors need to be aware of.

IPO Performance: A Mixed Bag

While the IPO market in 2024 has been record-breaking, not all companies have managed to maintain their initial success. According to the data, more than half (48 companies) of the 81 IPOs listed in 2024 saw an increase in stock prices of 10% or more on listing day. However, only 20 companies managed to sustain or further increase this profit. The remaining companies saw significant declines after their initial high.

In fact, 33 companies, accounting for over a third of the total IPOs, reported a 25% or higher profit on their listing day. Yet, only 9 of these companies successfully held onto or increased their gains. This demonstrates that while the initial excitement around an IPO can drive up stock prices, maintaining those gains is not guaranteed.

Losses Post-Listing: A Growing Concern

In addition to the volatility in share prices, many companies listed above their IPO price have struggled to maintain profitability. Out of the 62 companies that listed at a premium to their IPO price, 26 have reported no profits by December 24. This is a concerning trend, especially since some of these companies are newly listed and may show different performance over time.

It is important to note that this analysis doesn't take into account the duration of time these companies have been on the market. Shares of newly listed companies may still undergo significant fluctuations in the future, either rising or falling, depending on market conditions and company performance.

Top Performers in 2024

Despite the challenges, there are some success stories in the IPO space. Vibhor Steel Tubes emerged as the top performer, with an impressive 179% gain. Other notable performers include BLS e-Services (129%) and Premier Energies (120%), showing that while many IPOs have struggled, some have significantly outperformed expectations.

What Investors Should Know: Caution is Key

As the IPO market heats up, there’s a rush to invest in new offerings. However, investors should exercise caution and not be swayed by initial excitement or short-term gains. It is critical to conduct thorough research before investing in any IPO. This includes analyzing the company’s fundamentals, business model, and long-term prospects.

Investing in an IPO purely based on its initial performance or "listing gains" can be risky. Many companies experience a spike in stock prices on listing day, only to see them fall shortly after. It’s essential to take a long-term perspective and avoid making hasty investment decisions.

The Bottom Line: Not Every IPO Guarantees Profit

The IPO market may be thriving, but it’s important for investors to remember that not every offering will guarantee a return. While 2024 has been a record year for IPOs, the stock market remains volatile, and many companies will struggle to maintain their gains.

Before diving into any IPO, take the time to evaluate the company’s business prospects, financial stability, and market conditions. The initial excitement around IPOs can be tempting, but remember: not every IPO guarantees profit.

Stay informed, invest wisely, and avoid the temptation to chase after short-term gains. Only then can you make the most of the opportunities that the IPO market presents in 2024.

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