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Benchmarks trade with modest losses; PSU banks decline

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Capital Market
Last Updated : Oct 07 2022 | 2:50 PM IST

The key equity indices continued to trade with modest losses in morning trade. Negative global cues impacted sentiment. The Nifty continued to trade below the 17,300 mark. PSU banks witnessed some bit of profit booking after advancing in the past two sessions.

At 10:29 IST, the barometer index, the S&P BSE Sensex, was down 192.31 points or 0.33% to 58,029.79. The Nifty 50 index lost 59.60 points or 0.34% to 17,272.20.

In the broader market, the S&P BSE Mid-Cap index slipped 0.49% while the S&P BSE Small-Cap index gained 0.11%.

The market breadth was positive. On the BSE, 1692 shares rose, and 1391 shares fell. A total of 133 shares were unchanged.

Primary Market:

The initial public offer (IPO) of Electronics Mart India received bids for 59.98 crore shares as against 6.25 crore shares on offer, according to stock exchange data 10:24 IST on Friday (07 October 2022). The issue was subscribed 9.60 times.

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The issue opened for bidding on Tuesday (04 October 2022) and it will close on Friday (07 October 2022). The price band of the IPO is fixed at Rs 56-59 per share. An investor can bid for a minimum of 254 equity shares and in multiples thereof.

The issue comprises only fresh issue of equity shares aggregating to Rs 500 crore. Of the net proceeds about Rs 111.441 crore towards funding of capital expenditure (largely opening of stores and warehouses); Rs 220 crore towards funding incremental working capital requirements and Rs 55 crore towards repayment / prepayment of certain borrowings in part or full.

Buzzing Index:

The Nifty PSU Bank index fell 1.20% to 2,989.75. The index had advanced 3.84% in the past two sessions.

Bank of Baroda (down 1.93%), Canara Bank (down 1.1%), Bank of Maharashtra (down 1.08%), State Bank of India (down 1.08%) and Indian Bank (down 1.03%) were the top losers.

Among the other losers were Union Bank of India (down 1.01%), UCO Bank (down 0.84%), Punjab National Bank (down 0.82%), Central Bank of India (down 0.5%) and Bank of India (down 0.41%).

Stocks in Spotlight:

Dabur India shed 0.87%. The company said that the consolidated revenue is expected to grow at mid-single digit. The company said that it will continue to grow ahead of category growths and gain market share in most of its segments, both in domestic and overseas markets.

During the quarter inflation was at peak levels which impacted gross margins. The input cost pressure led to a near term impact on operating margin which is expected to be lower by around 150-200 bps as compared to Q2 FY22 but will see sequential improvement. With commodity prices easing, inflation is expected to ease in H2 FY22 leading to YoY improvement in operating margins.

Indian Hume Pipe Company surged 9.98%. The company received letter of acceptance (LOA) for Rs 194.03 crore under Jal Jeevan Mission Project in Maharashtra.

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First Published: Oct 07 2022 | 10:31 AM IST

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