Fresh IPOs indicating this market is bullish, not bearish: Sandip Sabharwal

In an interaction with ET Now, Sandip Sabharwal, asksandipsabharwal.com, says IPOs indicate that the passion for equity is there. It is not that people want to get out of equities, people want to come into equities but they are scared of coming into equities stocks which they have seen go down. Excerpts:

ET Now: Bunch of things which are in news like Tata Steel, Thomas Cook as a Quess IPO, and ADAG does not seem to be going out of news at all, neither is Sun Pharma. What is top of your mind?

Sandip Sabharwal: If you look at a combination of all these things, this is an indication of a bullish market rather than a bearish market. If you look at the grey market premiums of the IPOs which are going to be listed like 30% for Dr Lal's, 20-25% for Alkem and at the valuations at which the IPOs came, all indicate that investors are wary of the markets. It is just that the secondary markets have become much cheaper, than what the primary market.

ET Now: Everyone is coming for that IPO pop. What are your thoughts on that?

Sandip Sabharwal: Yes, everyone is coming, but that the kind of IPO pop we are seeing and the IPO pop sustaining beyond that for a month, two months, three months. That indicates that the passion for equity is there. It is not that people want to get out of equities, people want to come into equities but they are scared of coming into equities stocks which they have seen go down. That's the psychology which is playing right now in the markets.