Nifty50: 18,244 ▲ 84 (+0.4%)
Sensex: 61,418 ▲ 274 (+0.4%)
Greetings, people!
Who’s the #GOAT? While that debate will continue forever, football fans agree that this is the ‘greatest photograph of all time’. Snapped by famed portrait photographer Annie Leibovitz, this picture has gone viral. It already has 55 million likes and counting!
- After a subdued opening, the benchmark indices snapped a three-day losing streak and closed higher.
- In all, 36 of the Nifty50 stocks closed in the green.
- The Rupee closed 9 paise higher at 81.67 against the dollar.
Among the Nifty sectoral indices, PSU Bank (+1.6%) and Metal (+0.8%) witnessed gains, while Realty (-1.2%) was the sole loser.
| Top gainers | Today's change |
| IndusInd Bank | 1,172 ▲ 33 (+2.9%) |
| JSW Steel | 709 ▲ 13 (+1.8%) |
| NTPC | 167 ▲ 2.7 (+1.6%) |
| Top losers | Today's change |
| BPCL | 306 ▼ 3.8 (-1.2%) |
| Nestle India | 19,600 ▼ 161 (-0.8%) |
| Bharti Airtel | 847 ▼ 4.2 (-0.4%) |
What’s trending
⭐ Crude oil prices recover
The US crude oil prices hit a 11-month low of $75.3 per barrel on Monday on the back of reports claiming that the OPEC+, a group of oil producers, could increase oil production. However, oil prices bounced back sharply later in the day and were trading around $81 as Saudi Arabia’s energy minister said that the country would stick to the output cuts and doesn’t see any potential for production cuts in the future.
⭐ JK Paper acquires two packaging firms
JKPAPER (NSE): 415 ▼ 5.0 (-1.1%)
JK Paper has acquired an 85% stake in corrugated packaging manufacturers Horizon Packs and Securipax Packaging for around ₹578 crore. It will acquire the remaining 15% stake, in each company, within the next three years. Together, these companies are India’s largest corrugated packing manufacturers and have a consolidated revenue of ₹832 crore. Corrugated packaging is a rapidly growing segment driven by growth in the food & beverage and FMCG industries.
⭐ Stamp duty revenue collection jumps
According to reports, revenue collection from stamp duty and registration charges from 27 states and one union territory (J&K) stood at ₹94,800 crore for the first six months of FY23. This is a 35% jump on a year-on-year basis. The growth was strong despite incentives such as stamp duty reduction and rising property prices. This implies a strong buying interest in the residential real estate sector. The Nifty Realty Index has risen nearly 10% in the last six months.
⭐ India’s growth forecast revised
The leading rating agency, CRISIL has slashed India’s growth forecast for the current fiscal. The ratings agency has downgraded its forecast from 7.3% to 7.0% for FY23, citing a slowdown in global growth. The slowdown is expected to impact India’s exports and industrial activity.
In Focus
Lock-in period curse
Investors of Nykaa and Paytm have been offloading their stakes in November following the end of one-year lock-in period. As a result, shares of these companies have declined in the range of 8% to 25% this month. So let’s take a look at what is a lock-in period and how it impacts stock prices?
To start with, a lock-in period is the length of time during which certain categories of investors are not allowed to sell their shares in a given company. For pre-IPO investors, the lock-in period is for six months (was one year earlier). The purpose of a lock-in period is to help in minimising volatility and stabilising the share price after the listing.
In the case of FSN E-commerce Ventures, which owns Nykaa brand, the 1-year lock-in period for its pre-IPO investors ended on 10 November this year. Following this, the pre-investors of Nykaa rushed to sell their shares and book profits.
In November so far, private equity firm TPG Growth has offloaded Nykaa shares worth over ₹1,000 crore. Consequently, the stock price of the beauty and fashion retailer is down by 8.8% this month.
Similarly, One97 Communications, the parent company of Paytm, also witnessed a sell-off. For the pre-IPO investors of the fintech player, the lock-in period ended on 18 November 2022. One of the early investors of the company, SoftBank Group, divested 4.5% stake in Paytm worth ₹1,631 crore. Due to this, shares of Paytm are down by over 25% this month to ₹475, which is significantly below its issue price of ₹2,150 per share.
In this month, the lock-in period of companies like Latent View Analytics, Tarsons Products, Go Fashion, Venus Pipes and Ethos are expected to conclude 23-30 November. So, would they also endure similar fate or buck the trend?
Ready-made Option Strategies on Upstox
Options offer traders the potential to make a profit whether the markets are moving up, down or sideways. However, options are complex instruments, and option strategies can be even more complicated. If not used in a disciplined way, they could lead to severe capital losses.
To solve such problems and to make options trading easier, Upstox has introduced Ready-made Option Strategies, which allow traders to:
- Choose from pre-curated option strategies
- Know profit probability, maximum profit and loss, and funds required for each strategy
- Trade with unique one-click entry and exit orders
Click here to know more about Ready-made Option Strategies.
Good to know
What is the debt-to-equity ratio?
The debt to equity (D/E) ratio is a financial metric that shows how much debt (or loans) and equity a company uses to run its business. It is calculated by dividing total debt by shareholders’ equity. While a preferable D/E ratio differs from industry to industry, a lower ratio is generally considered better. In general, investors avoid companies with very high D/E ratios because it would mean the company could go into a debt trap, especially during recessions.
Click here to join us on Telegram for trading and investment-related videos, daily market updates, details on upcoming IPOs and more.