Markets closed with minor losses; Sensex dips 112 points & Nifty ends below 18,044

Equity indices ended a volatile trading session on a flat note on Tuesday, November 9, 2021. The S&P BSE Sensex was down 112.16 points, or 0.16 per cent, to 60,433.45. The Nifty 50 index declined 24.30 points, or 0.13 per cent, to 18,044.45. The Nifty managed to close above the 18,000-mark after hitting an intraday low of 17,983.05 in afternoon trade. The Nifty Bank dropped 69.45 points, or 0.18 per cent, to 39,368.80.

The broader markets outperformed the Sensex on the BSE with the S&P BSE MidCap rising 0.82 per cent and the S&P BSE SmallCap closing 0.67 per cent higher.

The market breadth was positive. On the BSE, 2007 shares rose and 1304 shares fell. On the Nifty 50 index at the NSE, 25 shares advanced and 25 shares declined. The top five gainers on Nifty are Mahindra & Mahindra (up 5.24 per cent), Tata Motors (up 1.91 per cent), Hero MotoCorp (up 1.27 per cent), SBI (up 1.10 per cent) and ONGC (up 1.07 per cent). The top five losers were Britannia (down 2.60 per cent), HDFC Bank (down 1.70 per cent), HDFC (down 1.39 per cent), NTPC (down 1.39 per cent) and Bajaj Finance (down 1.35 per cent).

The NSE's VIX index, a gauge of the market's expectation of volatility over the near term, fell 2.06 per cent to 16.

IPO Update

Paytm IPO Update

The initial public offering of One 97 Communications Limited, the parent company of India's leading digital financial services company, Paytm, was subscribed 0.48 times on Tuesday, the second day of subscription by 5 pm at BSE. The Qualified Institutional Buyers (QIBs) portion was subscribed 0.46 times, while the Non Institutional Investors (NIIs) and Retail Individual Investors (RIIs) were subscribed 0.05 times and 1.23 times, respectively.

The company has fixed the price band at Rs 2,080-2,150 per share for the offer as it seeks to raise around Rs 18,300 crore from the issue. The issue will come to a close on November 11, 2021. The issue comprises a fresh issue of equity shares worth Rs 8,300 crore and an offer for sale of Rs 10,000 crore (including Anchor portion of 3,83,02,326 Equity shares).

Sapphire Foods India Limited IPO Update

The initial public offering (IPO) of Sapphire Foods India Limited, a franchise operator of KFC and Pizza Hut restaurants, was subscribed 0.49 times by 5 pm at the BSE, on Monday, the first day of subscription. The Qualified Institutional Buyers (QIBs) portion was subscribed 0.02 times, while the Non Institutional Investors (NIIs) and Retail Individual Investors (RIIs) were subscribed 0.05 times and 0.56 times, respectively.

Sapphire Foods has fixed the price band of the issue at Rs 1,120-1,180 per share. It seeks to raise up to Rs 2,073 crore through the issue that will close on Thursday, November 11, 2021. Investors can bid for a minimum of 12 equity shares and in multiples of 12 shares thereafter. The maximum subscription amount for a retail investor is Rs 2 lakhs.

Economy

The US 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.

Prices that Chinese companies charge for their output likely rose at the fastest pace in more than two decades last month, driven by the continued commodity boom and an energy crunch, coupled with a resurgence of Covid and bad weather. The producer price index is expected to have climbed 12.3 per cent last month from a year earlier, according to the median estimates in a survey of economists, the fastest pace since late 1995.

Producer prices in China have been rising rapidly in the past few months, first due to the global commodity price rally and then output curbs caused by a power crunch nationwide. While the impact of higher PPI on global inflation is small, faster inflation is likely to worsen the situation for domestic businesses, especially smaller ones that were already facing higher costs and weak domestic demand. Premier Li Keqiang said recently the government needs to address the problems faced by small and medium-sized companies, including commodity-driven costs, and further price rises may add to calls for policymakers to step up support as the economy slows.