Nifty50: 17,671 ▼ -185 (-1.0%)
Sensex: 59,306 ▼ -677 (-1.1%)
The markets ended on a weak note for the third consecutive session. Out of the Nifty50 pack, 32 stocks closed in red.
Among the Nifty sectoral indices, PSU Bank (+1.4%) and Pharma (+0.7%) were the top gainers whereas IT (-1.4%) and Financial services (-1.0%) were the top losers.
| Top gainers | Today's change |
| UltraTech Cement | ▲ 2.6% |
| UPL | ▲ 2.1% |
| Cipla | ▲ 2.0% |
| Top losers | Today's change |
| Tech Mahindra | ▼ 3.4% |
| NTPC | ▼ 3.0% |
| IndusInd Bank | ▼ 2.8% |
For more updates on F&O, click here.
Here are the top stories of the day.
Govt reverses IRCTC revenue sharing
The Ministry of Railways withdrew its instruction to share revenues from the convenience fees earned by IRCTC. The revenue sharing agreement was to be enforced from November 1. Back in 2016, the Ministry of Railways scrapped convenience fees to promote bookings through IRCTC's portal.
Earlier in the day, IRCTC’s shares dived as much as 30% to hit an intraday low of ₹639. However, post government's clarification the stock recovered from the day's low to close about 7.4% lower.
It’s raining IPOs on D-Street
Beauty and fashion retailer Nykaa’s IPO continued to receive strong interest from investors on day 2. The IPO was oversubscribed 4.8 times. Similarly, investors also flocked toward Fino Payments Bank’s IPO with 51% of its public issue being subscribed on day 1.
The IPO party will continue next week on the D-street with three IPOs—PB Fintech, SJS Enterprises and Sigachi Industries—opening for subscription on Monday. You can apply for these public issues on Upstox by clicking here.
DLF’s Q2 profit surges
India’s largest realtor’s net profit rose 61% year-on-year to ₹380 crore, supported by revival in housing demand. However, the company's revenue declined by about 10% to ₹1,557 crore.
With a strong demand momentum across geographies, the company's sales bookings grew 77% to ₹1,512 crore mainly on the back of record sales of luxury apartments. The management said that with increasing volumes and well-calibrated price hikes, it expects further margin expansion of its projects. Meanwhile, shares of DLF closed flat amidst the weak market.
Closing bell
The markets see-sawed throughout the day and each swing was larger than 200 points on the Nifty50. The index fell 2.5% this week and declined for the second week in a row. The market movements suggest that bears have overpowered the bulls, in the short term. Further, on the daily charts, the index has made a lower top and lower bottom formation which indicates near term weakness in a broader uptrend. Next week, the US Fed will announce its interest rate decision and gradually the buzz around rates hikes later next year is gaining ground.
Good to know
What is a CASA ratio?
The CASA ratio refers to how much deposits a bank has in current accounts and saving accounts (CASA) in relation to the total deposits. It’s important for a bank to have a higher CASA ratio because they are the cheapest source of funds. This is because the interest that most Indian banks give on savings accounts is just around 3.5% and the interest on current accounts is also minimal. A higher CASA ratio is thus important for a bank to improve its profitability and efficiency.
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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.