Zomato IPO ends with a bang

Nifty50: 15,923 ▼-0.8 (-0.0%)
Sensex: 53,140 ▼-18 (-0.0%)

After making a new high yesterday, markets remained flattish today. The advance:decline ratio was largely even with 23 stocks closing in the green.

Among the Nifty sectoral indices, Pharma (+1.1%) and Realty (+1.1%) were the top gainers, whereas IT (-1.0%) and Bank (-0.4%) fell the most. 

Here are the top stories of the day.

L&T Infotech reports healthy Q1

• For the June quarter, the IT company reported its best-ever sequential revenue growth in dollar terms. In rupee terms, the revenue grew by 5.9% QoQ to ₹3,462 crore. The profit also rose 9% sequentially to ₹496 crore.
• While the company has not given any guidance, it mentioned that it is confident about its future prospects because of the strong demand and healthy pipeline. Shares of the company had risen 10% over the last two days, but witnessed profit booking today and fell 3% today.  

Cyient soars after strong Q1 results

• Shares of IT services company Cyient surged 11.7% today after it reported robust results for the June quarter. Its consolidated net profit rose 3.9% sequentially to ₹115 crore.
• Meanwhile, revenue from operations fell 3.2% sequentially to 1,058 crore. The dip in revenue was mainly due to lower revenues from the design-led manufacturing (DLM) segment. The company said that in FY22, it expects double-digit revenue growth in its Services business (80% of total revenues) and 20% growth in its DLM business.

Investors lap up IPOs

• The online food delivery platform Zomato received strong investor interest with its shares being oversubscribed by over 38 times on day 3. Meanwhile, the specialty chemicals maker Tatva Chintan Pharma Chem’s IPO, which opened today, was also subscribed over 4 times. You can apply for this IPO on Upstox.
• Meanwhile, Paytm has also jumped onto the IPO bandwagon.  The digital payment platform has filed its draft papers with the SEBI for an IPO upto ₹16,600 crore, supposedly India’s biggest public issue till date. 

Tata Steel Long reports a profitable Q1

• The sponge-iron producer reported a consolidated net profit of ₹331 crore in the June quarter as compared to a loss of ₹131 crore in June 2020. The turnaround was led by a 158% jump in revenue to ₹1,697 crore.
• The  results were announced yesterday after market hours, and today the stock opened at its lifetime-high of ₹1,173. However, it gave up the early gains and closed 0.3% lower.

Closing bell

This week, the markets gained 1.4% and ended at life-time high levels on a weekly basis. The energy stemmed from strong results of IT companies announced this week and hopes of economic revival. In the next week, in the absence of any major data releases, the focus will be completely on June quarter earnings. Some of the largest Indian companies, including Reliance Industries, Asian Paints, and Bajaj Finance, are expected to declare their results. As a result, Indian markets may continue to remain disconnected from those of the international indices in the days ahead. 

Good to know

What is capital expenditure?
Capital expenditure or capex refers to investment a company makes to acquire or maintain fixed assets, such a plant, machinery or buildings. If a company thinks that the demand for its products or services is increasing, it may invest in upgrading or increasing capacities if its existing capacity may fall short. A company’s capital expenditure is shown on the assets side of the balance sheet. This is because capex is used to create assets for the business rather than as an expense. 

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