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Sensex, Nifty end flat amid volatility; M&M jumps 5%

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Last Updated : Nov 09 2021 | 3:51 PM IST
Equity indices ended a volatile trading session on a flat note on Tuesday. The Nifty managed to close above the 18,000 mark after slipping below that level in intraday trade. Auto, PSU banks and healthcare stocks saw buying while financial and IT shares came under pressure.

As per the provisional closing data, the S&P BSE Sensex, was down 112.34 points or 0.19% to 60,433.54. The Nifty 50 index declined 24.30 points or 0.13% to 18,044.55.

The broader market outperformed the main indices. The S&P BSE Mid-Cap index gained 0.82% while the S&P BSE Small-Cap index added 0.67%.

The market breadth was positive. On the BSE, 2007 shares rose and 1304 shares fell. A total of 168 shares were unchanged.

Primary Market:

The initial public offer (IPO) of One97 Communications (Paytm) received bids for over 1.72 crore shares as against 4.83 crore shares on offer on Tuesday (9 November 2021), according to stock exchange data on 13:21 IST today. The issue was subscribed 36%.

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 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 39.12 lakh shares as against 96.63 lakh shares on offer on Tuesday (9 November 2021), according to stock exchange data on 15:18 IST today. The issue was subscribed 0.40 times.

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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.

Stocks in Spotlight:

Mahindra & Mahindra (M&M) jumped 5.21% after the company's standalone net profit before exceptional items rose 29% to Rs 1,687 crore in Q2 FY22 as against Rs 1,311 crore in Q2 FY21. Revenue rose 15% to Rs 13,305 crore in Q2 FY22 compared with Rs 11,590 crore in Q2 FY21. EBITDA fell 19% to Rs 1,660 crore in the second quarter from Rs 2,057 crore reported in the same period last year. The company's total vehicles sales rose 9% to 99,334 units in Q2 FY22 over Q2 FY21. Its total tractor sales fell 5% to 88,920 units in Q2 FY22 over Q2 FY21. M&M said its operating margin stood at 12.5% despite rising commodity prices and shortage of semi-conductors. It reported strong growth in exports both in auto and farm businesses.

MRF fell 1.63% after the company's consolidated net profit fell 53.99% to Rs 189.06 crore on 15.63% increase in net sales to Rs 4,907.81 crore in Q2 FY22 over Q2 FY21. On a consolidated basis, profit before tax declined 55.34% to Rs 255.21 crore in Q2 FY22 over Q2 FY21.

Elgi Equipments jumped 7.72% after the company's consolidated net profit rose 55.26% to Rs 51.61 crore on 35.77% increase in net sales to Rs 652.03 crore in Q2 FY22 over Q2 FY21. On a consolidated basis, profit before tax rose 51.22% to Rs 77.06 crore in Q2 FY22 over Q2 FY21.

J. Kumar Infraprojects rose 0.83%. The company's net profit grew by 478% to Rs 411 crore as compared to Rs 7.1 crore in Q2 FY21. Revenue from Operations for Q2 FY22 grew by 62% YoY to Rs 772 crore. Its Total Order book as on 30 September 2021 stood at Rs 1,1209.2 crore. The order book includes metro projects (elevated and underground) contributing approximately 58%, while flyover, bridges & roads projects contributing approximately 42%.

Sobha rose 2.37% after the real estate developer's consolidated net profit surged 198.15% to Rs 48.30 crore on 56.92% rise in net sales to Rs 819.10 crore in Q2 September 2021 over Q2 September 2020. On a consolidated basis, profit before tax (PBT) surged 183.41% year-on-year to Rs 64.90 crore in Q2 September 2021. The company said that the housing sector continues to follow its growth trajectory with healthy traction and strong demand momentum across segments and geographies. The company's all time high new sales bookings exhibited a strong performance during the quarter followed by healthy cash flows. This has enabled Sobha to continue with its stellar run in this quarter as well.

Route Mobile fell 0.79%. The company said that its fund raising committee at the meeting held yesterday (8 November 2021) authorized the opening of the qualified institutions placement (QIP). It also approved and adopted the preliminary placement document in connection with the QIP. The floor price of the QIP issue is Rs 1949.24 per equity share, the comapny said in a regulatory filing. The floor price is set at a discount of 1.93% to Monday's closing price of Rs 1987.70 per share. A meeting of the fund raising committee of the company shall be held on Friday, 12 November 2021, to consider and determine the issue price of equity shares to be issued pursuant to the QIP.

IRCON International added 2.90% to Rs 49.70 after the company emerged L -1 bidder in a tender valuing approximately Rs 5142 crore floated by National High Speed Rail Corporation (NHSRCL). The tender involves design, supply and construction of track and track related works including testing and commissioning for double line high speed railway between Zaroli village at Maharashtra-Gujarat Border and Vadodara in the State of Gujarat and the Union Territory of Dadra and Nagar Haveli for the project for construction of Mumbai-Ahmedabad High Speed Rail.

Global Markets:

Most European markets were trading higher while most Asian stocks closed on a positive note on Tuesday. Investors are looking ahead to fresh inflation readings in the U.S. in the next few days with the latest producer price index due Tuesday and the consumer price index slated expected on Wednesday.

The U.S. House of Representatives late Friday passed a more than $1 trillion infrastructure bill, sending the legislation to President Joe Biden for his signature. First passed by the Senate in August, the package would provide new funding for transportation, utilities and broadband, among other infrastructure projects.

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First Published: Nov 09 2021 | 3:31 PM IST

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