Morning Update for 1 December 2021

Indices at previous closing

Nifty50: 17,026 ▼-509 (-2.9%)

Sensex: 57,107 ▼-1,687 (-2.8%)

Nifty Bank: 36,025 ▼-1,339 (-3.5%)

For more updates on F&O, click here.

Paytm’s revenue rises but loss widens in Q2

In the September quarter, the recently listed leading financial services company’s loss widened to ₹473 crore from ₹436 crore in the same period last year. A ₹46 crore drop in other income led to higher losses. 

However, the revenues rose by 64% to ₹1,086 crore, driven by payments and financial services business. The company’s key operational metrics like total transactions, GMV, monthly average transacting users, registered merchants and loans also witnessed a strong growth. After a weak debut, shares of Paytm have partially recovered but are still trading 17% lower than their issue price.

Investors flock towards pharma stocks

Nifty Pharma Index rose 1.7% on Friday and was the only sectoral indices to close in green, when the markets witnessed broad-based selling on back of rising new cases globally. To an extent it indicates that traders are focusing on defensive stocks. 

Shares of Cipla (+7.2%), Alkem (+6.8%), Dr Reddy's (+3.4%), Cadila Healthcare (+2.6%) saw a strong buying interest. These companies are among the domestic manufacturers of Remdesivir and Favipiravir, which are considered as a key antiviral drug.

Oil tumbles over demand concerns

The prices of crude oil fell more than 12% on Friday on fears that a new variant of virus could hurt the global economic recovery and consequently lead to lower fuel demand. Also, there are concerns that supply surplus could rise in the first quarter of 2022. 

Last week, the US said that it will release millions of barrels of oil in coordination with other countries in a bid to cool off prices. These factors led to the oil’s biggest drop on Friday since April 2020. US crude oil (WTI) prices fell below $70.

Sectoral indices (November 26)

Global markets (at 8:40 am today)

Fact of the day

North Korea and Cuba are the only places where you can't buy Coca-Cola.

Source: BBC

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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.