Market Walk

Top Market Highlights Of The Day – Nov 29th 2021

Nifty Updates

Nine of the ten most valuable companies on the Nifty saw value erosion worth Rs.2,62,146 crore for the week ended 26-Nov. The big losers were Bajaj Finance and Reliance. As the Nifty plunged over 4.3% in the week, Bajaj Finance lost Rs.41,518 crore in market cap while Reliance lost Rs.38,441 crore. Other losers were Infosys Rs.37,950 crore, HDFC Rs.33,068 crore, SBI Rs.29,853 crore, ICICI Bank Rs.28,567 and HDFC Bank Rs.26,874 crore. Bharti Airtel was the sole gainer in Nifty with gains of Rs.14,779 crore in the week

SGX Nifty in green; Benchmark Indian equity indices may open higher today

Benchmark Indian equity indices may open higher today. The SGX Nifty was up 0.3% at 7.30 am. Indian stocks tumbled nearly 3% to hit a three-month low on Friday, tracking Asian markets, as investors pressed the panic button over reports of a new and possibly vaccine-resistant coronavirus variant. Currency markets stabilized after Friday’s volatility.

Gold drops as easing virus variant concerns curb haven demand

Gold fell after some concerns over the omicron coronavirus strain eased, boosting risk appetite even as the World Health Organization urged caution.Two South African health experts, including the doctor who first sounded the alarm about omicron, suggested the variant is presenting with mild symptoms so far. 

Paytms Q2 net loss widens to Rs 482 cr amid rising expenses

Financial technology firm Paytm’s parent One 97 Communications on Saturday reported that its non- Unified Payments Interface revenue volumes grew 52 per cent in the second quarter of FY22. This is the first time the company has reported earnings after listing earlier this month.The company said its net loss widened 11 per cent to Rs 482 crore in the quarter ended September (Q2) on a year on year basis, and increased 28 per cent compared to the quarter ended June.

ITC steps into D2C arena after buying stake in Mother Sparsh

Fast-moving consumer goods (FMCG) major ITC announced on Friday that it will acquire 16 per cent stake in direct to consumer (D2C) brand Mother Sparsh for ₹ 20 crore. In a regulatory filing to the stock exchanges today, ITC said that it will invest in the brand with a focus on the ‘mother and baby care’ segment, on a fully diluted basis.ITC has been focussing on the non-cigarette FMCG business over the past few years. “We believe that this investment provides an exciting opportunity which is in alignment with our aspiration to have a significant play both in the naturals and ayurvedic segment as well as in the D2C channel,” said Sameer Satpathy, Chief Executive, Personal Care Products Business, ITC.

SEBI’s Proposal

SEBI has proposed large-scale changes to the rules pertaining to preferential allotments of shares, warrants or convertibles to promoters and large investors on private placement basis. The pricing would now be based on the higher of 10-day VWAP and 60-day VWAP price since the 6-month price was not really relevant. Also, any preferential issue resulting in change in control or shift of over 5% stake will require a mandatory valuation by a registered valuer. The 3 year lock-in will also be relaxed to 18 months.

Hinduja brothers to increase their stake in IndusInd Bank

The Hinduja brothers of UK, among the richest Indian families in the world, are looking to increase their stake in IndusInd Bank. This was triggered after RBI eased ownership rules for private sector banks. They are awaiting final rules by the RBI. Hindujas are now willing to hike their stake in IndusInd Bank to 26%. RBI agreed to let promoters hike their stakes in private banks from 15% to 26%, but refused to permit corporates into banking. Currently, Hindujas own 16.5% in IndusInd Bank. It will benefit Kotak Bank too.

Pharma and healthcare On A Rally

Pharma and healthcare stocks rallied amidst a weak market on Friday 26-Nov as the return of COVID brought back hopes of another surge in pharma demand. The pharma index gained 2.4% in a weak market on Friday. Some of the big gainers in the Pharma index on Friday included names like Cipla, Alkem, Dr. Lal PathLabs, AstraZeneca, Pfizer, Reddy Labs and Divi’s Labs. Players like Cipla, Cadila, Reddy Labs and Sun Pharma are among the domestic manufactures of Remdesivir, a key antiviral drug against the COVID-19.

Macrotech Developers looking to enter Bengaluru

Macrotech Developers (formerly Lodha Developers) is looking to enter the fast-growing Bengaluru market to tap the huge property demand from IT employees in Bengaluru. Just last week, Godrej Properties had also announced an expansion into Bengaluru. Macrotech plans to grow its annual sales bookings 3-fold to Rs.20,000 crore by FY26. With debt pruned post the IPO and the balance sheet stronger, Macrotech finds it the right time to make its Southern foray. It is targeting sales bookings of Rs.9,000 crore for FY22.

Tata Steel To Focus on Iron ore production

Tata Steel will focus on enhancing its iron ore production from 30 MTPA to 45 MTPA over the next 5 years. Currently, its 30 MTPA is spread across its captive mines located in Noamundi block in Jharkhand and in Katamati, Joda and Khondbond blocks in Odisha. These will cater to the steel plants of Tata Steel located at Jamshedpur and Kalinganagar. Tata Steel started its iron ore mining operations at Noamundi in 1925. This expansion of capacity by 50% will give them a more assured supply of iron ore plus control over costs.

FPI Pumps Rs. 5319 Cr In Indian Market

Foreign portfolio investors pumped in Rs.5,319 crore into Indian capital markets in November, but it is the sub-text that is a lot more revealing. FPIs were net investors in equities to the tune of Rs.1,400 crore and in debt to the tune of Rs.3,919 crore. However, it is the Rs.1,400 crore FPI flows into equities that is of interest. It comprises of secondary market outflows of Rs.25,919 crore and IPO inflows of Rs.27,319 crore. FPIs were major sellers in banks. FPIs are likely to be influenced by the spread of the COVID variant.

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