Benchmarks end with decent gains; Electronics Mart IPO subscribed over 6 times

6 Oct 2022 , 03:42 PM

The domestic equity benchmarks ended with minor gains after a volatile session on Thursday. The Nifty closed below the 17,350 level. Metal, media and realty stocks were in demand. On the other hand, pharma, healthcare and FMCG shares were under pressure. Trading remained volatile due to expiry of weekly options on the NSE. As per provisional closing data, the barometer index, the S&P BSE Sensex, gained 156.63 points or 0.27% to 58,222.10. The Nifty 50 index added 57.50 points or 0.33% to 17,331.80. The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 1.13% while the S&P BSE Small-Cap index gained 1.30%. Buyers outnumbered sellers. On the BSE, 2,365 shares rose and 1,091 shares fell. A total of 127 shares were unchanged. Economy: The seasonally adjusted S&P Global India Services PMI Business Activity Index stood at 54.3 in September, signalling growth for the fourteenth consecutive month. That said, falling from 57.2 in August, the latest reading highlighted the weakest rate of expansion since March. Companies linked higher output to greater bookings, events and client bases. The upturn was reportedly restricted by price pressures, an increasingly competitive environment and unfavourable public policies. Primary Market: The initial public offer (IPO) of Electronics Mart India received bids for 37.85 crore shares as against 6.25 crore shares on offer, according to stock exchange data 15:33 IST on Thursday (06 October 2022). The issue was subscribed 6.06 times. The issue opened for bidding on Tuesday (04 October 2022) and it will close on Friday (07 October 2022). The price band of the IPO is fixed at Rs 56-59 per share. An investor can bid for a minimum of 254 equity shares and in multiples thereof. The issue comprises only fresh issue of equity shares aggregating to Rs 500 crore. Of the net proceeds about Rs 111.441 crore towards funding of capital expenditure (largely opening of stores and warehouses); Rs 220 crore towards funding incremental working capital requirements and Rs 55 crore towards repayment / prepayment of certain borrowings in part or full. Buzzing Index: The Nifty Metal index rose 3.24% to 5,956.45. The index has added 6.47% in two sessions. Welspun Corp (up 6.03%), Hindalco Industries (up 4.73%), JSW Steel (up 4.7%), Vedanta (up 4.59%) and Hindustan Zinc (up 4.09%) were the top gainers. Among the other gainers were APL Apollo Tubes (up 3.7%), Steel Authority of India (up 3.39%), Jindal Steel & Power (up 3.07%), National Aluminium Company (up 2.61%) and Hindustan Copper (up 2.5%). Stocks in Spotlight: Bajaj Finance fell 1.15%. The NBFC said new loans booked during Q2 FY23 were 6.8 million, up 7.94% compared with 6.3 million in Q2 FY22. Deposit book stood at approximately Rs 39,400 crore as of 30 September 2022, a YoY growth of 37%. Customer franchise as of 30 September 2022 stood at 62.9 million, up 19.13% YoY. Assets under management (AUM) grew by 31% YoY to approximately Rs 218,350 crore as of 30 September 2022. Larsen & Toubro (L&T) advanced 2.10%. The company said that the buildings & factories business of L&T Construction has secured an order from a leading automobile major to construct a state-of-the-art manufacturing facility in Haryana. As per L&Ts classification, the value of the significant project is Rs 1,000 crore to Rs 2,500 crore. Zee Entertainment Enterprises rallied 4.88%. The Competition Commission of India (CCI) approved the merger of Zee Entertainment Enterprises with Sony Pictures Networks India and Bangla Entertainment, both part of the Sony Group Corp., accepting the modifications proposed by the companies to the deal they had announced last December. CCI granted approval with certain modifications to the proposed merger of Zee Entertainment Enterprises (ZEE) and Bangla Entertainment (BEPL) with Culver Max Entertainment (CME), formerly known as Sony Pictures Networks India. JSW Energy jumped 13.24% after the company said that its wholly-owned subsidiary, JSW Neo Energy, has entered into a Memorandum of Understanding (MoU) with the Maharashtra Government for setting up a 960 megawatt (MW) capacity hydro pumped storage project (PSP) viz. Pane (Raigarh) pump storage project in the state of Maharashtra. Godrej Consumer Products slumped 4.51%. The company said that the Indian FMCG industry continued to remain soft during the quarter. In India, the company expects to deliver close to double-digit growth during the quarter and a mid-single-digit volume drop, with a low single-digit 3-year volume CAGR. RBL Bank advanced 2.55%. The private lenders total deposits rose 5% to Rs 79,407 crore as of 30 September 2022 from Rs 75,588 crore recorded on 30 September 2021. The banks retail LCR deposits aggregated to Rs 32,804 crore as on 30 September 2022, recording a growth of 4% YoY. Yes Bank rose 2.78%. The banks deposits increased by 13.2% to Rs 2,00,020 crore as on 30 September 2022 from Rs 1,76,672 crore as on 30 September 2021. Loans & advances as on 30 September 2022 stood at Rs 1,92,809 crore, up by 11.6% YoY. Ujjivan Small Finance Bank rallied 5.17%. The banks gross loan book jumped 44% to Rs 20,938 crore as on 30 September 2022 as against Rs 14,514 crore recorded on 30 September 2021. Total Deposits aggregated to Rs 20,389 crore as on 30 September 2022, up 45% YoY. Global Markets: Shares in Europe advanced across the board while Asian stocks traded mixed on Thursday. Wall Street stocks closed lower on Wednesday after data showing strong U.S. labor demand again suggested the Federal Reserve will keep interest rates higher for longer. Fed officials have insisted on aggressive rate tightening to battle inflation, a message the market has feared would lead to a hard landing and likely recession. The U.S. trade deficit fell slightly more than expected in August to its lowest level in more than a year, the Bureau of Economic Analysis reported Wednesday. The trade shortfall declined to $67.4 billion, a $3.1 billion drop from the previous month. In March 2022, the deficit had hit a record $106.9 billion. Mainland China markets are closed for a holiday this week. Powered by Capital Market – Live News