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Benchmarks trade in narrow range; metal stocks lose shine

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Capital Market
Last Updated : Nov 10 2021 | 12:50 PM IST
Benchmark indices were trading in a narrow range with modest losses in mid-morning trade. The Nifty held above the 17,950 level. Negative global cues weighed on investors' sentiment.

At 11:24 IST, the barometer index, the S&P BSE Sensex, declined 283.24 points or 0.47% to 60,150.54. The Nifty 50 index fell 83.25 points or 0.46% to 17,961.

The broader market displayed mixed trend. The S&P BSE Mid-Cap index fell 0.33% while the S&P BSE Small-Cap index added 0.41%.

The market breadth was positive. On the BSE, 1791 shares rose and 1315 shares fell. A total of 165 shares were unchanged.

Primary Market:

The initial public offer (IPO) of One97 Communications (Paytm) received bids for over 2.67 crore shares as against 4.83 crore shares on offer on Wednesday (10 November 2021), according to stock exchange data on 11:00 IST today. The issue was subscribed 55%.

One97 Communications (Paytm) is one the largest payments platform in India based on the number of consumers, number of merchants, number of transactions and revenue ended March 2021.

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The IPO opened for bidding on Monday, 8 November and it will close on 10 November. The price is set at Rs 2080 to Rs 2150.

Ahead of the IPO, Paytm raised Rs 8,235 crore from anchor investors including Blackrock, CPPIB, Birla MF, GIC among other blue-chip investors. The IPO consists of a fresh issue to raise Rs 8300 crore and offer of sale (OFS) comprising Rs 10,000 crore.

The initial public offer (IPO) of Sapphire Foods India received bids for over 61.04 lakh shares as against 96.63 lakh shares on offer on Wednesday (10 November 2021), according to stock exchange data on 11:03 IST today. The issue was subscribed 63%.

Sapphire foods is one of YUM's franchisee operators in the Indian subcontinent. Company is also Sri Lanka's largest international QSR chain in terms of revenue for the financial year 2021as also number of restaurants operated as of 31 March 2021. The IPO opened for bidding on Tuesday, 9 November and it will close on 11 November. The price is set at Rs 1120 to Rs 1180.

Ahead of the IPO, Sapphire Foods finalized allocation of allocation of 79,06,473 equity shares to anchor investors, at a price of Rs 1,180 per equity share to anchor investors, aggregating to Rs 932.96 crore.

Buzzing Index:

The Nifty Metal index slipped 1.86% to 5,654.40. The index has declined 2% in two days.

Tata Steel (down 2.85%), Steel Authority of India (down 2.83%), Hindalco Industries (down 2.53%), JSW Steel (down 2.43%) and Coal India (down 2.08%), Jindal Steel & Power (down 2.05%) and NMDC (down 2%) declined.

Earnings Impact:

Procter & Gamble Health was down 0.4%. On a standalone basis, the company's net profit fell 6.6% to Rs 55.37 crore on a 3.3% rise in net sales to Rs 272.80 crore in Q1 September 2021 over Q1 September 2020.

Milind Thatte, the managing director (MD) of Procter & Gamble Health, said, "We delivered a strong performance in our first quarter of fiscal 2022 focused on executing our strategies of offering superior brands, driving productivity, increasing reach, and improving awareness. With the country gradually easing restrictions further due to improved vaccination coverage, we will continue our strategy to leverage technology and deliver constructive disruption to better serve our consumers and customers who count on our brands and the benefits they provide."

CreditAccess Grameen fell 3.41% to Rs 598.90 after the company reported 7.9% fall in standalone net profit to Rs 71.99 crore despite 8.3% rise in total income to Rs 510.33 crore in Q2 FY22 over Q2 FY21. The microfinance institution recorded an operating profit of Rs 194.71 crore in the second quarter, up 10.5% YoY. Provisions and write-offs increased by 39.5% to Rs 91.12 crore in Q2 FY22 from Rs 65.32 crore in Q2 FY21.

Global Markets:

Asian stocks were trading lower on Wednesday as investors reacted to the release of Chinese inflation data for October.

China's consumer inflation for October came in roughly in line with expectations, according to official data released Wednesday. The consumer price index for October rose 1.5% from last year. Producer prices, however, rose more than expected. The producer price index for October surged 13.5% from last year.

Wall Street closed lower on Tuesday as profit-taking and worries over ongoing inflation fueled a broad sell-off.

U.S. inflation data for October is also set to be released later Wednesday stateside.

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First Published: Nov 10 2021 | 11:27 AM IST

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