Most analysts have given Kalyan Jewellers IPO 'Subscribe' for a long term rating on the back of brand recall and a strong pan India presence.
On an intraday basis, Sensex plunged 993 points to 49,799, while the Nifty50 index touched 14,745 on the lower side.
Most experts suggest booking profits in MTAR Technologies as the valuations look expensive.
Shares of MTAR Technologies opened for trading at Rs 1,050 on the National Stock Exchange, compared to the issue price of Rs 575, marking a premium of 82.61%.
Sensex fell 130 points to open at 50,661; while the broader market index Nifty50 opened at 14,992 losing 38 points.
On an intraday basis, Sensex swung 1,283 points and the Nifty fluctuated 383 points.
Department of Financial Services noted that the clause on the valuation of AT1 bonds is disruptive in nature.
In the grey market, shares were quoting at a premium of Rs 655 or 59% above its price band which is fixed at Rs 1,100-1,101 per share.
The small finance bank has fixed a price band of Rs 303-305 per share. Investors can bid for a minimum of 49 equity shares and in multiples, thereafter.
Ahead of the IPO, the shares were quoting at a premium of Rs 7.5 or close to 9% in the grey market.