The benchmark indices reversed early losses and ended with strong gains on Monday. The S&P BSE Sensex, surged 477.99 points or 0.80% at 60,545.61. The Nifty 50 index rose 151.75 points or 0.85% at 18,068.55.
Titan Company (up 4.29%), Ultratech Cement (up 4.26%), Bajaj Finserv (up 4.15%), HDFC (up 2.71%) and Infosys (up 1.65%) boosted the indices.
The government's decision to cut excise duty on fuel prices, improved PMI numbers and good festive season sales numbers supported buying. Globally, the US Fed's plan to start with gradual tapering fell in line with market expectations.
The broader market ended with firm gains. The BSE Mid-Cap index rose 1.20% and the BSE Small-Cap index gained 0.78%.
The market breadth was positive. On the BSE, 1,808 shares rose and 1,551 shares fell. A total of 191 shares were unchanged.
The NSE's VIX index, a gauge of market's expectation of volatility over the near term, rose 3.76% to 16.34.
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The central government on Wednesday announced a cut in excise duty on petrol by Rs 5 per litre and diesel by Rs 10 per litre on the eve of Diwali. The move was followed by reductions in value-added tax (VAT) by more than a dozen states.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 6.302% as compared with 6.357% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 74.03, compared with its close of 74.46 during the previous trading session.
MCX Gold futures for 3 December 2021 settlement fell 0.09% to Rs 47,930.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.06% to 94.27.
In the commodities market, Brent crude for January 2022 settlement rose 96 cents at $83.70 a barrel. The contract rose $2.20, or 2.73% to settle at $82.74 a barrel in the previous trading session.
Foreign Markets:
Shares in Europe and Asia were mixed 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.
The Dow Jones US Futures were up 68 points, indicating a positive opening in the US market today.
Sentiment improved after US drug major 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.
Meanwhile, 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.
Stocks in Spotlight:
Britannia Industries rose 1.89%. The FMCG company reported 22.9% fall in consolidated net profit to Rs 384.22 crore despite a 5.5% rise in total revenue from operations to Rs 3,607.37 crore in Q2 FY22 over Q2 FY21.
Profit before tax in Q2 FY22 stood at Rs 522.84 crore, down by 22% from Rs 670.18 crore in Q2 FY21. Inventory turnover ratio was 40.87 in Q2 FY22 as against 47.75 in Q2 FY22. Operating margin was 14.09% in Q2 FY22 as against 18.34% in Q2 FY22.
IndusInd Bank slumped 10.71% after the media reported that several people, including a group of senior employees of the IndusInd Bank arm, Bharat Financial Inclusion (BFIL), alerted the RBI and the board of the private sector lender about lapses in governance.
IndusInd Bank termed the allegations of 'evergreening' of loans as inaccurate and baseless, even as it admitted that due to a technical glitch in May, about 84,000 loans were disbursed without customer consent.
IndusInd had acquired the micro-finance lender BFIL - formerly SKS Microfinance - in a stock deal in March 2019.
Divi's Laboratories dropped 5.54%. The drug maker posted a 17% rise in consolidated net profit to Rs 606 crore in Q2 FY22 from Rs 520 crore posted in the corresponding quarter last year. The drug major reported a 13.6% increase in revenue from operations to Rs 1,987.51 crore in Q2 FY22 from Rs 1749.30 crore posted in Q2 FY21. Profit before Tax (PBT) for the quarter amounted to Rs 760 crore in Q2 FY22, 9.6% higher than Rs 693 crore registered in Q2 FY21.
Wockhardt jumped 5.23% after the company reported a consolidated net profit of Rs 34 crore in Q2 FY22 as against a net profit of Rs 4 crore in Q2 FY21. Sales increased by 21% YoY to Rs 862 crore during the quarter. The company's UK Business grew by 66% over previous corresponding quarter and stood at Rs 387 crore in Q2FY22. The continuing India Business stood at Rs 187 crore in Q2FY22, registering growth of 47%. Emerging Markets Business of the company stood at Rs 113 crore (down 33% YoY) in Q2 FY22. Irish Business stood at Rs 38 crore (up 12% YoY) in Q2FY22. US Business stood at Rs 61 crore in Q2FY22 as compared to Rs 99 crore in Q2FY21, registering de-growth of 38%. Research and Development (R&D) expenses were Rs 39 crore in Q2 FY22, amounting to 4.5% of the sales of the company. In Q2 FY21, R&D expenses aggregated to Rs 45 crore (6.3% of sales). EBITDA in the second quarter was Rs 109 crore as against Rs 27 crore in the same period last year. EBITDA margin was 12.7% in Q2 FY22 as compared with 3.8% in Q2 FY21.
Canara Bank advanced 6.75% after ICRA upgraded the rating of bank's Basel-III Tier-II bonds worth Rs 7900 crore to 'ICRA AAA (Stable)' from 'ICRA AA+(hyb) (Stable)'. The credit ratings agency has also upgraded its ratings on the Basel III Additional Tier l bonds worth Rs 1500 crore to 'ICRA AA+ (Stable)' from 'ICRA AA (hyb) (Stable)'.
Olectra Greentech rallied 4.59% after the company said its consortium has received letter of award from a state transport corporation for 100 electric buses under FAME-II scheme of Government of India. The consortium of Olectra Greentech and Evey Trans (EVEY) will supply 100 electric buses on Gross Cost Contract (GCC) / OPEX model basis. Value of this contract is approximately Rs 140 crore to the company.
Pfizer jumped 5.17% after the company's parent said on Friday that its experimental Covid-19 antiviral pill cut by 89% the chance of hospitalization or death for adults at risk of severe disease. The drug - Paxlovid - is intended for use soon after symptoms develop in people at high risk of severe Covid-19 disease. The drug was found to reduce the risk of hospitalization or death by 89% compared to placebo in non-hospitalized high-risk adults with Covid-19.
Uflex shed 2.90% after the company's consolidated net profit dropped 23% to Rs 171.05 crore on a 38.3% jump in net sales to Rs 2,983.90 crore in Q2 FY22 over Q2 FY21. Consolidated EBITDA skid 10.2% to Rs 424.50 crore in Q2 September 2021 from Q2 September 2020.
Inox Wind rose 3.85% after the company bagged an order for a 150 MW (mega-watt) wind power project from NTPC Renewable Energy, a wholly owned subsidiary of NTPC, to be commissioned in the state of Gujarat. The order will help NTPC achieve its target of having over 60 GW (giga-watt) renewable energy capacity, constituting nearly 50% of its overall power generation capacity by 2032.
Primary Market:
The initial public offer (IPO) of One97 Communications (Paytm) received bids for over 88.23 lakh shares as against 4.83 crore shares on offer on Monday (8 November 2021), according to stock exchange data at 17:00 IST. The issue was subscribed 18%.
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.
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