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Nifty holds 18,000 mark; breadth weak

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Capital Market
Last Updated : Oct 28 2021 | 1:04 PM IST
Benchmark indices extended losses and hit fresh intraday low in mid morning trade. The Nifty held above the crucial 18,000 mark. All sectoral indices on the NSE traded in the red with metal, realty and PSU banks declining the most. Negative global cues weighed on domestic sentiment.

At 11:35 IST, the barometer index, the S&P BSE Sensex, declined 503.87 points or 0.82% to 60,639.91. The Nifty 50 index fell 159.7 points or 0.88% to 18,051.25.

In the broader market, the S&P BSE Mid-Cap index fell 0.63% while the S&P BSE Small-Cap index declined 0.98%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 970 shares rose and 2097 shares fell. A total of 143 shares were unchanged.

Primary Market:

The initial public offering (IPO) of Nykaa, with a price band of Rs 1,085-1,125 per share, opened for public subscription on Thursday and will conclude on 1 November. Ahead of its IPO, Nykaa on Wednesday said it has raised Rs 2,396 crore from anchor investors.

As of 11:24 IST, Nykaa IPO was subscribed 28% with the retail portion fully booked with 1.37 times, NSE data showed. The portion reserved for employees has been subscribed 0.11 times and non institutional investors (NIIs) 0.04 times

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Earnings Impact:

Happiest Minds Technologies rose 0.24%. The IT company's net profit jumped 30.4% to Rs 44.44 crore on 44.68% increase in revenue from operations to Rs 264.53 crore in Q2 FY22 over Q2 FY21. Profit before tax rose 39.09% to Rs 59.35 crore in Q2 FY22 over Q2 FY21. The net profit rose 24.38% and revenue from operations rose 8.14% in Q2 FY22 over Q1 FY22. EBITDA rose 6% QoQ and 42% YoY to Rs 70.12 crore in Q2 FY22. EBITDA margin stood at 25.6% in Q2 FY22 lower than 26.1% in Q1 FY22 and 26.3% in Q2 FY21. Operating revenues in US$ terms stood at $35.8 million (growth of 8.0% q-o-q and 44.9% y-o-y). The company reported free cash flows of Rs 67.43 crore in Q2 FY22.

Adani Enterprises (AEL) dropped 6.82% to Rs 1,460.80 after the company's consolidated net profit tumbled 55.35% to Rs 194.54 crore on a 44.83% surge in revenue from operations to Rs 13,218.02 crore in Q2 FY22 over Q2 FY21. Consolidated total income jumped 46% to Rs 13,597 crore due to significant increase in index prices in IRM segment. Consolidated EBIDTA rose 33% to Rs 1,262 crore due to increase in revenue and better margins in Integrated Resources Management (IRM) business.

Buzzing Index:

The Nifty Metal index slipped 3.09% to 5,564.70, falling for second trading session. The metal index declined 4.56% in two days.

Jindal Steel & Power (down 4.88%), Vedanta (down 4.77%), Coal India (down 3.03%), Hindalco Industries (down 2.86%) and Steel Authority of India (down 2.56%) were the top losers. Among the other losers were Hindustan Zinc (down 2.21%), JSW Steel (down 2.05%), Tata Steel (down 2.03%) and NMDC (down 0.53%) were top losers in metal space.

Global Markets:

Asian stocks were trading lower on Thursday as investors await the Bank of Japan's latest monetary policy announcement. The Bank of Japan is set to announce its latest monetary policy decision on Thursday. The central bank is expected to hold steady on policy, as per reports.

Japan's retail sales fell for a second month in September as consumers limited spending amid concerns over the coronavirus pandemic. Retail sales in September slipped 0.6% from the same month a year earlier, government data showed on Thursday. It followed a 3.2% dip in August that marked the first year-on-year decline in six months.

The Dow Jones Industrial Average dipped 266.19 points to 35,490.69, falling for the first time in four days, dragged down by Visa. The S&P 500 traded down 0.5% to 4,551.68, for its first down day in three. The tech-heavy Nasdaq Composite closed at 15,235.84, flat despite a jump in Microsoft and Alphabet shares.

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First Published: Oct 28 2021 | 11:34 AM IST

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