Morning Update for 8 November 2021

Indices at previous closing

Nifty50: 17,916 ▲+87 (+0.4%)

Sensex: 60,067 ▲+295 (+0.4%)

Nifty Bank: 39,573 ▲+171 (+0.4%)

For more updates on F&O, click here.

More IPOs open today

Companies are making a beeline for launching their IPOs. One97 communication, which is the parent company of PayTM, will launch its ₹18,300 crore public issue today. This is India’s biggest ever IPO. The price band for the issue is ₹2,080-₹2,150 per share.  

Besides PayTM, Sapphire Foods will open its ₹2,073 crore IPO for subscription from Tuesday with a price band of ₹1,120-₹1,180 per share. Following this, Latent View Analytics will launch its ₹600 crore public issue on Wednesday with a price band of ₹190-₹197 per share. You can apply for these IPOs on Upstox. 

Maruti monitors commodity prices

According to reports, Maruti Suzuki is hoping that commodity prices will soften as they have sort of reached their peak. In the second quarter of FY22, the material cost to net sales ratio had gone up to 80.5% as the commodity prices soared. Usually, material cost is around 70%-75% of the total cost for original equipment manufacturers. 

Maruti Suzuki is reportedly closely tracking prices of commodities to fix vehicle prices in the future. This comes in the wake of an unprecedented rise in prices of commodities such as steel, copper, palladium, platinum and rhodium. Meanwhile, shares of Maruti Suzuki were up 0.3% on Thursday. 

Gold prices rise after Fed meet

The prices of yellow metal moved up after the US central bank announced that it plans to start tapering the stimulus without hiking the interest rates. This is positive development for gold as a hike in rates would have made the US treasury bonds more attractive to investors. 

Experts said that the gold prices will be supported by strong physical demand for it in India and China during the festive season. But they also warned that there are some signs of the labour market hitting full employment. This means that the US Fed could accelerate its pace of tapering, which could adversely impact gold prices.   

Sectoral indices (November 4)

Global markets (at 8:15 am)

Fact of the day

The first-ever Bitcoin exchange-traded fund, launched by ProShares, traded on the New York Stock Exchange on October 19, 2021.  

Source: Economic Times

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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.