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Broader market trades firm; IndusInd Bank down 10%

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Capital Market
Last Updated : Nov 08 2021 | 11:50 AM IST
Benchmarks traded near the flat line with tiny losses in mid morning trade. The Nifty hovered at 17,900 mark. Pharma, healthcare and banks stocks declined while media and consumer durable shares advanced.

At 11:28 IST, the barometer index, the S&P BSE Sensex, was down 59 points or 0.1% to 60,007.88. The Nifty 50 index traded 13 points lower or 0.07% to 17,903.50.

The broader indices were trading firm. The S&P BSE Mid-Cap index gained 0.64% while the S&P BSE Small-Cap index rose 0.36%.

The market breadth was positive. On the BSE, 1603 shares rose and 1533 shares fell. A total of 196 shares were unchanged.

Broader Market Gainers:

Whirlpool of India (up 5.13%),Bata India (up 4.59%), Canara Bank (up 4.52%), Union Bank of India (up 4.48%) and Bharat Electronics (up 4.24%) were top gainers in Mid Cap space.

Prince Pipes & Fittings (up 7.4%), Jubilant Ingrevia (up 3.76%), VIP Industries (up 3.63%), Spice Jet (up 3.12%) and Happiest Minds (up 3.06%) were top gainers in Small Cap space.

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Primary Market:

The initial public offer (IPO) of One97 Communications (Paytm) received bids for over 33.42 lakh shares as against 4.83 crore shares on offer on Monday (8 November 2021), according to stock exchange data at 11:15 IST. The issue was subscribed 7%.

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.

The IPO opened for bidding today, 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.

Stocks in Spotlight:

IndusInd Bank slumped 10.52% to Rs 1063.70 after media reports suggested that whistle blowers had raised loan evergreening issue at the bank's microlending arm Bharat Financial Inclusion (BFIL). A group of senior officials at Bharat Financial have reported alerted the Reserve Bank of India and the board of IndusInd Bank of the misgovernance and lapse of accounting norms to evergreen loans since the outbreak of the COVID-19 pandemic, reports said. Acting as whistle blowers, the officials warned that if the practice of adjusting new loan money with overdues from earlier loans" is not checked immediately, the fault in the subsidiary would eat into the financials of the parent, media reports said.

Gujarat Alkalies & Chemicals rose 0.17%. The company's net profit jumped 12.9% to Rs 74.57 crore on a 29.4% surge in net sales to Rs 825.76 crore in Q2 FY22 over Q2 FY21.

Global Markets:

Most Asian stocks were trading lower on Monday as investors react to China's trade data released over the weekend.

Official data released over the weekend showed China's exports surging 27.1% in October as compared with a year ago.

Wall Street stocks jumped early Friday, lifting markets to fresh records following a strong US jobs report and a Pfizer announcement about a promising COVID-19 treatment.

Meanwhile, Pfizer announced that a clinical trial of its pill to treat COVID-19 showed an 89% reduction in risk of hospitalization or death among adult patients at high risk of progressing to severe illness.

On the macro front, the US economy added 531,000 jobs last month and job gains in the prior two months were higher than originally reported, while the unemployment rate dropped to 4.6%, according to government data.

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First Published: Nov 08 2021 | 11:28 AM IST

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