Informist, Thursday, Nov 18, 2021
By Ankika Biswas and Abhishek Saini
MUMBAI – Even as bears strengthened their grip on the market today, shares of debutant One97 Communications were the ones that witnessed prominent selling pressure. The shares of Paytm’s parent company hit the lower circuit today, as they extended losses following a weak debut.
While the stock had listed at a discount of 9%, it extended the losses and slumped over 27% to 1,560.80, triggering a trading halt. Market participants attributed the fall to Macquarie Research’s initiation of coverage on the stock with an ‘underperform’ rating and a target price 40% lower than the issue price.
Calling the company a “cash guzzler”, the brokerage house said achieving scale with profitability is a big challenge for Paytm. Unless it starts lending, it can’t make significant money by merely being a distributor, Macquarie said.
“The steep losses in Paytm’s parent have dampened the sentiment for further IPOs with steep valuations, especially in the financial technology space,” said Vinit Bolinjkar, head of research at Ventura Securities.
In view of this, analysts asked new investors to explore other opportunities where new-edge companies could perform better than Paytm.
As for the overall market, weak global cues amid inflation fears and recent downgrades by major investment banks and brokerage firms also played against the risky asset class.
Today, headline indices slumped over 1% during the day amid broad-based selling, but gains in select frontline banks and a recovery in index-heavy Reliance Industries’ shares saw the indices end off the day’s lows.
Briefly slumping below the 17700-point mark, the Nifty 50 closed 0.8% lower at 17764.80 points, while the Sensex closed 0.6% lower at 59636.01 points, after hitting an intra-day low of 59376.50 points.
Falling for the third straight session, the 50-stock index closed the week with 2% losses after two weekly gains.
Among frontline sectors, stocks in the automobile space fell prey to profit booking following weak retail sales in October, after registering sharp gains in the last few sessions on hopes of easing semiconductor chip shortage.
Shares of Maruti Suzuki India, Hero MotoCorp and Tata Motors closed 2-4% lower, dragging the Nifty Auto index nearly 3% down.
The information technology pack also succumbed to selling pressure. HCL Technologies fell nearly 3% today, while Tata Consultancy Services and Wipro shed over 1% each. The Nifty IT index snapped its four-day gaining streak and closed 2% lower.
Among individual stocks, shares of Zensar Technologies closed 9% lower following large deals of around 12% stake on BSE.
Shares of index-heavyweight Reliance Industries snapped their three-day losing streak and closed nearly 0.4% higher at 2,473.30 rupees.
Shares of Escorts closed nearly 11% higher after touching a lifetime high in early trade as Japanese farm-equipment manufacturer Kubota Corp is set to increase its stake in the company and become a joint promoter.
As for the other debutant, shares of Sapphire Foods India made a decent debut on bourses today, but closed off the day’s high due to profit booking. It closed 3% higher at 1,211.55 rupees.
Meanhwile, selling pressure was also seen in the broader market today, with the mid-cap and small-cap indices on the NSE closing over 1% lower each.
* Among Nifty 50 stocks, 7 rose and 43 fell
* Among Sensex stocks, 6 rose and 24 fell
* On the NSE, 463 stocks rose, 1,526 fell and 67 were unchanged
* On the BSE, 1,038 stocks rose, 2,289 fell and 135 were unchanged
* Nifty Auto: down 2.6%; Nifty Pharma: down 1%; Nifty Bank: down 0.2%
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BSE National Stock Exchange
Sensex: 59636.01 down 372.32 pts (0.6%) Nifty 50: 17764.80, down 133.85 pts (0.8%)
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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)
End
Edited by Avishek Dutta
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