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July '97 disastrous for primary market

The primary capital market posted its worst ever performance in July this year since 1992 even though the sensex has been going up merrily, throwing a major paradox in the financial sector.

Only a measly sum of Rs 30 million could be raised from the primary market through only three public issues in July, a prime study of Prithvi Haldea said.

''This has been the worst ever month for the primary market ever since the Securities and Exchange Board of India came into active being in June 1992. In fact, the last decade has seen only one worse month, which was June 1991 which had only one public issue for Rs 5.9 million,'' the study said.

The other months with low mobilisations (less than Rs 200 million) were march 1989 with Rs 70 million, May 1991 with Rs 190 million and July 1991 with Rs 190 million.

It is for the fourth month in succession that the market has witness an ''extremely low level of mobilisation through public issues.''

The Rs 30 million mobilisation in July represents a substantial fall from even the earlier months' poor figures: Rs 530 million in June, Rs 720 million in May, and Rs 730 million in April. There were 13 issues in June, nine in May and 15 in April.

UNI