Selling pressure intensifies

Nifty50: 17,857 ▼ -353 (1.9%)
Sensex: 59,984 ▼ -1,158 (1.8%)

The markets opened on a negative note and due to sustained selling pressure throughout the day plummeted nearly 2%. The market breadth was extremely weak with 44 of the Nifty50 stocks closing in the red. 

All Nifty sectoral indices closed in the red with PSU Bank (-5.2%) and Realty (-3.7%) being the top losers.

For more updates on F&O, click here.

Here are the top stories of the day.

Sona BLW jumps on strong Q2  

Gurugram based electric vehicle (EV) component maker’s net profit rose 22% year-on-year to ₹88 crore. The company's revenue rose 52% YoY to ₹586 crore. The growth in revenues was driven by its EV segment, where revenues soared 143%.This segment now contributes 22% of total revenues from about 14% as on March ‘21. 

The management said that despite rise in input costs their profitability and return ratios remain strong. The company's order book now stands at ₹13,600 crore of which nearly 60% is contributed by electric vehicles. Meanwhile, shares of Sona BLW Precision were up 8% today and have registered gains of about 20% so far this month.

Titan falls despite jump in profits

Jewellery and watch maker reported a net profit of ₹641 crore, a growth of 222% year-on-year. Its total income rose 64% to ₹7,220 crore aided by strong recovery in demand across its key business segments. 

Titan’s stores were fully operational during the quarter and store expansion has also gained traction. The company's jewellery business witnessed a demand resurgence and registered a growth of 77% to ₹6,106 crore. Meanwhile, shares of Titan were down 2.7% amidst a weak market. However, the stock is up nearly 10% so far this month. 

PNB falls as asset quality weakens

In the September quarter, the state-owned bank’s net profit rose by 78% year-on-year to ₹1,105 crore. This sharp rise in the profit was aided by a 29% sharp drop in provisioning for the non-performing assets (NPAs).  

However, the bank’s interest earned declined 14% YoY to ₹17,980 crore. Its net NPAs also rose 5.4% in Q2FY22 from 4.7% in Q2FY21. Against this backdrop, the shares of the bank were down 10% today. 

Closing bell

All-round selling was seen in the markets today as international indices lent weak cues. Further, volatility soared on the expiry day of the October derivative contracts. The India Vix rose 6.5%. The decline in metal stocks on the back of falling metal prices doesn’t augur well for the markets, in general, because weakening demand could be one of the reasons. A similar trend is also seen in crude oil prices, which are down 5% over the last two days. Falling commodity prices could have a soothing effect on inflation, albeit with some lag.

Good to know

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