Investors show caution

Nifty50: 17,829 ▼-59 (-0.3%)
Sensex: 59,771 ▼-257 (-0.4%)

• The markets witnessed profit booking today and ended in the red. 
• Of the Nifty50 pack, 27 stocks declined. 

For more updates on F&O, click here.

Here are the top stories of the day.

SBI reports strong Q2 profit 

In the September quarter, India’s largest public sector bank reported its highest quarterly net profit at ₹7,627 crore, up 66.7%  YoY.  In the same period, the bank’s net interest income also rose 10.6% to ₹31,184 crore. 

This rise in the net interest income coupled with a fall in the provisioning for bad loans boosted the profit. The bank’s gross non-performing assets declined by 38 bps to 4.9% of the total loan book. The CASA ratio also improved by 85 bps to 46.2%. 

Trent posts robust Q2 numbers

Shares of the operator of retail chain Westside surged 9% intraday as it posted a profit of ₹137 crore in the September quarter compared to a loss of ₹59 crore in the same period last year. The profit was aided by a 126% year on year jump in revenues to ₹1,020 crore on a standalone basis. 

The business witnessed sustained recovery from second-wave related disruption and was able to operate for 91% of the trading days. The management continues to focus on its store expansion program and has 191 Westside and 147 Zudio stores operational. 

IPOs receive strong interest

The bumper IPO month is underway with investors flocking toward public issues. On the final day, the IPO of PB Fintech, the parent company of Policybazaar and PaisaBazaar, was oversubscribed more than 16 times. Similarly, Sigachi Industries IPO was oversubscribed by over 100 times. 

Besides these IPOs, SJS Enterprises’ public issue was also fully subscribed. The IPO activity will continue next week with Paytm, Sapphire and Latent View Analytics launching their public issues. You can pre-apply for IPOs on Upstox now.  

Closing bell

The markets fell for the second day in a row. Multiple factors may have contributed to the decline, viz. uncertainty ahead of the US Fed interest rate decision tonight, drop in international indices, long holiday weekend in India and finally a weak technical setup with a lower top and lower bottom formation on Nifty50’s daily chart. Clearly, caution was the order of the day. Tomorrow the market will be open for normal trading between 6:15 pm - 7:15 pm for the Diwali's Muhurat Trading Session. 

Good to know

What is the debt to equity ratio? 

The debt to equity (D/E) ratio reveals how much of a company’s debt is covered by shareholders’ equity. It is an important financial metric which shows a company’s debt in relation to its owned funds. It is calculated by dividing total debt by shareholders’ equity. While the normal D/E ratio differs from industry to industry, a lower ratio is generally preferable. 

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