Informist, Wednesday, Nov 10, 2021
By Dhanya Nagasundaram and Joe Milton
MUMBAI – Amid a lacklustre market, the star of the day was the stock of FSN E-Commerce Ventures, Nykaa’s owner, which witnessed a bumper listing on the stock exchanges today.
FSN E-Commerce got listed at 2,018 rupees on the NSE, about 80% higher than the issue price of 1,125 rupees. Buoyed by a strong growth outlook for the company, investors continued to accumulate the stock. On the back of strong buying interest, shares of the debutant almost doubled and touched a high of 2,248 rupees.
Analysts expect Nykaa’s owner to grow in double digits as it is among the rare lucrative new edge businesses with a positive outlook.
The upside momentum in FSN E-Commerce is expected to continue for a couple of days, and then the stock may stabilise for some time as valuation could become a concern following the huge listing gains, said Santosh Meena, the head of research at Swastika Investmart.
Some analysts suggested booking partial profits in FSN E-Commerce. “Anyone who wishes to enter fresh shall wait for the stock to declines to 1,900-1,850 rupees levels,” said Rahul Sharma, the co-founder of investment advisory firm Equity99.
Benchmark indices were weak throughout the day, but managed to recoup some losses towards the end of the session on the back of gains in some heavyweight stocks. The Nifty 50 ended 0.2% lower at 18017.20 after touching an intraday low of 17915.00 points.
Correspondingly, the BSE-Sensex ended at 60352.82, down 0.1% after touching the day’s low of 59967.45 points.
Weakness in the benchmark indices was due to continued selling pressure in financial services companies’ stocks. Shares of frontline banks like HDFC Bank, Kotak Mahindra Bank, State Bank of India, and ICICI Bank ended 0.7-1.0% lower.
Following this, the Nifty Bank index breached its major support level of 39000 points and touched an intraday low of 38873.80 points. However, the index managed to recover slightly and closed 0.9% lower at 39023.25 points.
Sustenance of Nifty Bank above 39000 is crucial, as a slide below this level may trigger further selling, analysts said.
Apart from financials, metals stocks witnessed profit booking as steel prices in China fell amid weak demand from real estate developers. On the other hand, iron ore prices also slumped as China curbed its steel production to reduce pollution ahead of Winter Olympics in 2022. Iron ore is used as raw material for steel.
Shares of Steel Authority of India, Jindal Steel & Power, Hindalco Industries, Tata Steel, and NMDC ended 2-5% lower. Nifty Metal was the worst hit among sectoral indices, falling 1.8%.
On stock-specific front, Firstsource Solutions plunged 10% and touched its two-month low of 178.90 rupees as the company reportedly cut its revenue growth guidance at its post-earnings conference call.
Among Nifty 50 constituents, gains in selective heavyweight stocks helped cushion the index on the downside. Shares of Reliance Industries, Bharti Airtel, Mahindra & Mahindra, and ITC Ltd closed 1-4% higher.
* Among Nifty 50 stocks, 25 rose and 25 fell
* Among Sensex stocks, 13 rose and 17 fell
* On the NSE, 969 stocks rose, 1,003 fell and 65 were unchanged
* On the BSE, 1,709 stocks rose, 1,602 fell and 147 were unchanged
* Nifty IT: down 0.26%; Nifty Auto: up 0.5%; Nifty Pharma: up 0.23%
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BSE National Stock Exchange
Sensex: 60352.82, down 80.63 pts (0.13%) Nifty 50: 18017.20, down 27.05 pts (0.15%)
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S&P BSE Sensitive Index Nifty 50
Lifetime High:62245.43 (Oct 19) : Lifetime High: 18604.45 (Oct 19)
Record Close High: 61765.59 (Oct 18) : Record Close High: 18477.05 (Oct 18)
2021 1st day close: 47868.98 (Jan 1) : 2021 1st day close: 14018.5 (Jan 1)
2021 Closing High: 61765.59 (Oct 18) : 2021 Closing High: 18477.05 (Oct 18)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 62245.43 (Oct 19) : 2021 High (intraday): 18604.45 (Oct 19)
2021 Low (intraday): 46160.46 (Jan 29) : 2021 Low (intraday): 13596.75 (Jan 29)
2020 Closing High: 47751.33 (Dec 31) : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23) : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31) : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24) : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20) : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19) : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28)) : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23) : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26) : 2017 High(intraday): 10515.10 (Dec 26)
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End
Edited by Mainak Moitra
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