Right-priced IPOs to be a hit: Expert

There is enough appetite for initial public offerings in the market but the pricing of the issues have to be "right", a top stock-market expert said.

"If the IPOs are priced right, then there is enough appetite for them in the market," Enam Securities Chairman Vallabh Bhanshali told reporters in Mumbai on Monday.

There might be some pressure on pricings but appetite for IPOs would remain, he said, adding "a climate of caution will, however, exist".

Terming the sharp slide in the stock-market today as a "correction", Bhanshali said that the market was overbought and "hence, a correction was due".

The Sensex fell by 1,408.35 points on Monday, the biggest on a single day in absolute terms and the fifth biggest in percentage terms. Attributing today's fall to a lot of selling by domestic entities, Bhanshali, however, said that he would be surprised if the decline continued.

"The market fundamentals are still strong and at the present levels, the market could once more be attractive."

"Unfortunately, corrections do not come in a measured way," he said, while commenting on the fall of over 1,400 points on Monday on the Bombay Stock Exchange. "If history is anything to go by, the markets also do recover sharply," Bhanshali added.