Best Performers

As benchmark indices move closer to their historic highs, investors are booking profits, with equity mutual funds witnessing a net outflow of Rs 7,011 crore in September.







IPOs Lose the Midas Touch
More than half the companies that raised money through initial public offerings or follow-on public offers between February and October this year, are trading below their issue prices. In case of some stocks, the current market price is less than half their listing price.

• Between February and October 2010, 42 companies have raised money through initial public offerings or follow-on public offers. Of these, 24 companies are trading below their issue prices.
• If an investor had subscribed to all 42 IPOs, he would have earned a meagre return of 8.8%. This is far lower than the return delivered by the BSE-500 Index, which gained 26% during the same period.
• The poor performance is attributed to the overpricing of public issues by promoters and investment bankers.
• Though it isn't a foolproof strategy, tracking IPO gradings through rating agencies can help investors stay clear of fundamentally weak public issues.