Bears ride inflation fears

Nifty50: 17,873 ▼143 (-0.8%)
Sensex: 59,919 ▼-433 (-0.7%)

The markets witnessed profit booking for the third consecutive session. Of the Nifty50 pack, 41 stocks declined. 

Among the Nifty sectoral indices, only Metal (+0.3%) posted gains. Whereas, Realty (-2.3%) and PSU Bank (-1.8%) were the top losers. 

For more updates on F&O, click here.

Here are the top stories of the day.

CRISIL jumps on strong Q2

In the September quarter, the leading ratings and research agency reported consolidated net profit of ₹113 crore, up 25% year-on-year. In the same period, the revenue also rose 17% to ₹571 crore, which supported the growth in profit. 

The management said that the revenue rose on the back of improvement in the business environment. The activity in the lending market is picking up and there are signs of clients enhancing their bank lines and seeking refinancing. After the strong performance in Q2, shares of CRISIL were up 10% today.

Metropolis reports subdued Q2 numbers

In the September quarter, the Mumbai-based diagnostic company’s net profit dropped to ₹58 crore from ₹60 crore in Q2FY21. It’s revenue was marginally up by 5% to ₹303 crore. The revenue was severely impacted by over 55% drop in pandemic-related testing revenues. 

Meanwhile, there was a 38% rise in non-pandemic related revenue and the company expects that portion of the business to grow sustainably, going ahead. Meanwhile, shares of the company were down 2.5% today. Shares of other diagnostic players Dr. Lal Path Labs (-1.8%) and Thyrocare (-0.8%) were also subdued today. 

Narayana Hrudayalaya hits lifetime high

The Bengaluru-based hospital chain reported a net profit of ₹99.4 crore compared to a loss of ₹3.4 crore in the same period last year. It’s revenue rose 56% year-on-year to ₹940 crore on the back of recovery in its Indian operations. 

The company’s India business’ revenue grew 68% year-on-year to ₹763 crore with pick-up in business momentum as number of new cases dropped. Meanwhile, its shares jumped 14% intraday, hitting new life high. But the shares pared their early gains and ended 3.3% higher.

Closing bell

The Nifty50 opened gap-down on the back of weak global cues. The US markets closed weak as the inflation in America hit a three-decade high in October at 6.2%. Pandemic-related supply shortages and strong consumer demand put pressure on the prices. Meanwhile, gold which is considered as a hedge against inflation is already seeing buying interest and its prices are up about 4.5% so far this month. Indian consumer inflation numbers will be released tomorrow evening. The street expects the inflation to be stable at 4.3%. Any upward surprise in these numbers or outlook could put further pressure on the Indian markets. 

Good to know

What is a PE ratio?

The price-to-earnings (PE) ratio is an important metric used by investors and analysts for valuing a company. To calculate the PE ratio, one must divide current share price by the earnings per share. It is basically the price which investors are willing to pay for the company’s past or future earnings. Usually, a high PE ratio means that a stock is overvalued or the markets expect the company’s earnings to grow strongly. Click here to watch a detailed video on the PE ratio. 

Yay 👍 or Nay 👎?

We'd love your thoughts on this market recap.

Haven't tried out Upstox yet? Click here to open your account now!

To catch our latest educational videos, join our Telegram channel here.

Disclosures and Disclaimer

Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.