Nifty50: 17,898 ▼-100 (-0.5%)
Sensex: 60,008 ▼-314 (-0.5%)
The markets declined for the second consecutive day today. Of the Nifty50 pack, 35 stocks declined.
Among the Nifty sectoral indices, Auto (+0.7%) and Media (+0.4%) were top gainers. Whereas, Realty (-1.6%) and Oil & Gas (-1.4%) were top losers.
| Top gainers | Today's change |
| Asian Paints | ▲ 2.3% |
| Maruti | ▲ 2.3% |
| SBI Life | ▲ 2.3% |
| Top losers | Today's change |
| UPL | ▼ 3.1% |
| Reliance | ▼ 2.1% |
| Cipla | ▼ 2.0% |
For more updates on F&O, click here.
Here are the top stories of the day.
ITC rallies on demerger buzz
As per reports, ITC is likely to consider the demerger of its wholly-owned subsidiary ITC Infotech. This technology services and solutions provider is reportedly valued around ₹20,000-25,000 crore.
ITC Infotech serves companies in various industries such as banking and financial services, healthcare, and manufacturing. Meanwhile, shares of ITC jumped over 4% intraday on the possibility of value unlocking. The stock later witnessed some profit booking amid broader weakness in the markets.
Asian Paints rises on price hike
India’s largest paint maker has reportedly taken a 4-5% price hike to offset the impact of the rising input costs. The recent price hike implies a total of 19% hike in the current financial year. The rising input costs have been impacting the company's margins and have been a concern for more than a year now.
Crude derivatives roughly account for about 55% of raw material costs of paints companies and have seen a price jump of 30% year-on-year. Meanwhile, the company believes that the inflationary pressure might continue for some time. Asian Paints was a top gainer in the Nifty50 pack today.
IPO rush continues on D-Street
Investors flocked towards labware equipment maker Tarsons Products IPO on the final day. The public issue was oversubscribed more than 75 times. Qualified institutional investors showed strong interest with this segment being oversubscribed 115 times.
Similarly, women’s bottom wear manufacturer Go Fashion also received strong response. On day 1, The IPO was oversubscribed more than 2 times. You can apply for this IPO on Upstox.
Closing bell
At the moment, the Nifty50 lacks direction primarily because it has been locked in an upward sloping range since the start of this month. Break on the either extreme of the range – 18200 or 17600 – could give cues related to the future trend the index will take. Meanwhile, tomorrow is the last trading day of this week and also expiry of weekly derivative contracts. This could result in a rise in volatility.
(*Trading holiday on Friday)
Good to know
What is operating margin?
The operating margin is a financial metric which reveals how much money a company is making after paying its variable cost like wages and raw material but before paying out interest and tax. This reveals how efficiently a company’s operations are managed. It is calculated by dividing operating income or earnings by net sales. A high operating margin shows that the company is good at turning its sales into profit.
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