Monday mayhem

Nifty50: 17,416 ▼-348.2 (-1.9%)
Sensex: 59,636 ▼-1170.1 (-1.9%)

• The markets faced intense selling pressure today.
• Of the Nifty50 pack, 41 stocks declined. 
• All Nifty sectoral indices posted losses with PSU Bank (-4.5%) and Realty (-4.1%) being the top losers. 

For more updates on F&O, click here.

Here are the top stories of the day.

Airtel to raise mobile tariffs

Telecom major Bharti Airtel will hike it’s prepaid tariff rates by 20-25%. This will come into effect from November 26. As per the company, the mobile Average Revenue Per User (ARPU) needs to be at ₹200 and eventually ₹300.

In the September quarter, Airtel’s ARPU stood at ₹153. The company believes that by raising ARPU, it will be able to make investments in the network, spectrum, and also roll out 5G in India.  Bharti Airtel was top gainer in the Nifty50 pack today. Meanwhile, the rub-off effect was also seen on the shares of Vodafone Idea, which were up 7%. 

Domestic air passenger volumes take off

Domestic air passenger volume rose about 70% year-on-year in October 2021 to nearly 90 lakh, according to the regulatory body DGCA. Meanwhile, market leader IndiGo’s market share dipped to 53.5% from 56.2% in September. 

Whereas, the budget carrier SpiceJet’s market share rose from 8.5% to 9.0% in October. Air India, which recently got a new owner, had a market share of around 12%. In terms of share price movement, shares of IndiGo have been flat so far this month, those of SpiceJet have risen nearly 11%. 

IPO debutants face selling pressure

Shares of four out the seven companies, which listed on the exchanges this month, are trading below their respective issue prices. Digital payments major Paytm, fintech player Fino Bank and decorative aesthetics supplier SJS Enterprises have witnessed sharp corrections in the range of 20% to 37%. 

Similarly, shares of KFC franchise operator Sapphire Foods have also pared their listing gains. Whereas, Nykaa, PB Fintech and Sigachi have managed to buck the trend and continued to trade at a premium, ranging from 27% to 230%, as compared to their respective issue prices. 

Closing bell

Indian markets witnessed broad-based selling and brushed aside positive cues from major Asian and European indices today. It is normal to see some buying reaction after sharp corrections. However, it would be helpful for traders to analyse the market mood i.e. whether it is a buy-on-dip or sell-on-rise type of a market. Meanwhile, the India VIX surged 18% today and indicated that traders expect volatility to rise in the coming weeks.

Good to know

What is ARPU?

Average revenue per user (ARPU) is an important metric which reveals how much revenue a telecom company is making per user. It is calculated as total revenue divided by total users. A rising ARPU is a good indicator that the company is able to monetise its user base and can also lead to a rise in profits.   

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