Street Signs: Anchor lock-in expiry, reversal of fortune for ETFs & more

Stocks of Archean Chemical Industries, 5 Star Business Finance, Kaynes Technology India, and Inox Green will be watched keenly this week as 90-day anchor lock-in period in these counters expires

Investors keyed up over anchor lock-in expiry

The shares of Archean Chemical Industries, 5 Star Business Finance, Kaynes Technology India, and Inox Green Energy Services (Inox Green) will be watched keenly this week as the 90-day anchor lock-in period in these counters expires. Previously, stocks have come under pressure in the course of selling by institutional investors after the end of the anchor lock-in. The heightened volatility amid rout in Adani Group stocks is expected to further bedevil sentiment. “Except Inox Green, investors are sitting on decent gains in the three other stocks where the anchor lock-in is set to conclude. There may be some selling pressure if large investors appear to sell. But investors can use this as a buying opportunity,” observes an analyst.

FPI long-short ratio signals turn of tide

Foreign portfolio investors (FPIs) have turned aggressive sellers of domestic equities in recent weeks. They have been selling in the cash segment and creating short positions in the derivatives segment, leading to downward pressure on markets. “The FPI long-short ratio in the index futures segment is about 19 per cent. Their positioning is short-heavy,” says Ruchit Jain, lead-research, 5Paisa. Any positive set-off, says Jain, could lead to short-covering and propel the markets higher. “This will be a major trigger for the market. As far as the National Stock Exchange Nifty goes, a breakout above 17,950-18,000 may lead to a gush of buying interest, which may lead it towards 18,200-18,250. On the flip side, 17,700-17,600 is seen as the immediate support range,” he adds. The Nifty last closed at 17,857 on Friday.

Reversal of fortune for ETFs: First outflow in over 2 years
 

Investors redeemed a net of Rs 1,700 crore from non-gold exchange-traded funds (ETFs) in January. This was the first month since October 2020 when non-gold ETFs witnessed outflows. Industry data shows that redemptions from such ETFs nearly doubled month-on-month in January this year to Rs 16,670 crore, from Rs 8,980 crore in December last. Major ETFs like the Nifty50 and the Nifty Next 50 took a hit to performance in January after a free fall in Adani Group stocks.