Morning Update for 29 October 2021

Indices at previous closing

Nifty50: 17,857 ▼ -353 (-1.9%)
Sensex: 59,984 ▼ -1,158 (-1.8%)
Nifty Bank: 39,508 ▼-1,365 (-3.3%)

For more updates on F&O, click here.

In the news

Nykaa IPO fully subscribed on Day 1

Beauty product retailer Nykaa's IPO got off to a strong start and received strong interest from investors as it got fully subscribed on day one itself. The IPO was subscribed 1.5 times on day 1 itself, with a portion meant for retail investors getting subscribed within the opening hour.

The quota for retail investors received 3.5 times more bids. The company has set a price band of ₹1,085-1,125 per share and aims to raise ₹5,351 crore through its IPO. You can apply for Nykaa’s IPO on Upstox. The issue closes on 1 November ‘21

IRCTC to split its convenience fee

The Ministry of Railways has asked its ticketing arm, IRCTC, to share 50% of the revenue generated from convenience fees collected by it, for bookings made on its website. As per the filing, the revenue sharing arrangement will be enforced from November 1.

The state-owned company has 100% market share in the rail network and used to retain 100% of the convenience fee earned from the customers. The company facilitates booking of tickets, provides catering services and packaged drinking water at railway stations. Meanwhile, IRCTC's shares were up 11.7% after the stock traded ex-split today. 

Indigo’s loss widens in Q2

In the September quarter, the low cost airline’s net loss widened to ₹1,435 crore from ₹1,194 crore in the same period last year. This was despite a 104% increase in its revenue to ₹5,608 crore. A sharp 207% rise in fuel costs along with restrictions on capacity utilisation dented the domestic airline’s bottomline.  

The management has said that it is encouraged by the pace of revenue recovery and expects the capacity in terms of available seat kilometers to increase around 45% year-on-year in the December quarter. Shares of Indigo’s parent company, InterGlobe Aviation rose 0.5% yesterday, though results were announced after market hours.

Sectoral indices (October 28)

Global markets (at 8:00 am)

Fact of the day

Owing to rising costs and inflation, the All India Chamber of Matches has doubled the price of matchbox to ₹2. This is the first price hike in 14 years. 

Source: Mint

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