Nifty50: 17,415 ▼-88.3 (-0.5%)
Sensex: 58,340 ▼-323.3 (-0.5%)
- The markets witnessed volatility in the last hour of the trading session and ended in the red.
- Of the Nifty50 pack, 36 stocks declined.
- Among the Nifty sectoral indices, Media (+2.0) and Oil & Gas (+0.4) were top gainers.
- Whereas, IT (-1.5%) and Auto (-1.2%) were top losers.
| Top gainers | Today's change |
| ONGC | ▲ 4.2% |
| Adani Ports | ▲ 3.9% |
| Coal India | ▲ 1.7% |
| Top losers | Today's change |
| Eicher Motors | ▼ 2.8% |
| Tata Consumer | ▼ 2.8% |
| Maruti | ▼ 2.7% |
For more updates on F&O, click here.
Here are the top stories of the day.
Two PSU banks surge on privatization buzz
Shares of government-owned lenders - Indian Overseas Bank and Central Bank of India - soared in the range of 15% to 18% intraday. This comes after the reports claimed that the government has shortlisted these two financial institutions for divesting its stakes.
The reports added that the government is planning to propose amendments to the banking law for enabling privatization of these two banks. This new bill will be reportedly tabled in the upcoming winter session of Parliament. Meanwhile, Nifty PSU Bank was also up 0.3%.
Sugar shares rise on strong outlook
Shares of major sugar companies rose upto 7% today. The jump in stock prices is coupled with high volumes indicating strong buying interest. Sugar production in Brazil, the world's largest sugar producer, could drop by over 10% this year due to adverse weather conditions. This is expected to create a tight global supply situation.
Meanwhile, in India favourable government policies and increasing ethanol blending would keep sugar inventories under control and sugar prices upbeat. Further, on the back of favourable government policies, experts believe that India would be able to achieve 10% ethanol blending in 2022, compared to about 8.3% last year.
IPCA Labs acquires stake in Lyka Labs
Mumbai-based pharma company Ipca Laboratories has acquired 26.5% stake in injectables maker Lyka Labs for ₹98 crore and has gained joint management control. Consequent to this acquisition, Ipca will acquire another 26% from the public shareholders.
Lyka Labs is engaged in the manufacturing and marketing of lyophilized injectables and via the stake acquisition will mark Ipca entry into this market. Further, Lyka will benefit from Ipca marketing expertise in branded generic formulations business. While the shares of Ipca closed flat today, that of Lyka were locked in the upper circuit.
Closing bell
The Nifty50 index gave up its intraday gains on back of selling pressure in index-heavy weights such as Reliance Industries and Infosys, which have 18% weightage in the index. Further, major European indices were trading in the red today and gave negative cues to the Indian markets. Meanwhile, the US markets will remain closed on Thursday and Friday for Thanksgiving Day and no major Indian data releases are lined up this week. Thus, the market movement is expected largely to be based on domestic news flow.
IPO Update
India’s largest private health insurer Star Health is all set to launch its IPO on 29 November with a price band of ₹870 to ₹900 per share. You can apply for IPOs on Upstox.
Good to know
What are retained earnings?
Retained earnings refer to the historical profits earned by the company or reserve money. It is basically the profits remaining after paying off the dividends each year or quarter. A growth-oriented company doesn’t usually pay a dividend and uses these retained earnings to expand its capacity and outreach. Higher retained earnings either indicates that a company has a strong financial record or it is struggling to find opportunities to invest for the growth of the business.
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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.