Nykaa’s stellar debut

Nifty50: 18,017 ▼-27 (-0.1%)
Sensex: 60,352 ▼-80 (-0.1%)

• Although the markets trimmed their morning losses, they ended in the red again 
• Of the Nifty50 pack, 27 stocks posted losses

For more updates on F&O, click here.

Here are the top stories of the day.

Nykaa makes blockbuster debut

FSN E-Commerce Ventures, which operates Nykaa and Nykaa Fashion, witnessed a bumper listing  as it opened at a 79% premium over its issue price of ₹1,125 per share. The issue was in high demand and was 82 times subscribed. 

Meanwhile, on its last day, Paytm’s ₹18,300 crore mega-IPO was subscribed more than 1.8 times. Further, KFC franchise operator Sapphire Foods has been fully subscribed on its second day and analytics services provider Latent View Analytics has been subscribed over 6 times on the first day of its IPO. You can apply for these IPOs on Upstox.

Bank of Baroda’s Q2 profit rises

In the September quarter, the state-owned bank’s net profit surged 24% year-on-year to ₹2,088 crore. The strong growth in profit was aided by a 23% rise in the non-interest income and lower provisioning. However, it showed a muted rise in its net interest income which was up 2% to ₹7,566 crore. 

Meanwhile, its asset quality improved with the gross non-performing assets falling to 8.1% in Q2FY22 from 9.1% in Q2FY21. While the stock fell today, it had risen over 19% in the last month.

Kalyan Jewellers posts strong Q2 results

In the September quarter, Kerala-headquartered jeweler reported a net profit of ₹69 crore, compared to a loss of ₹136 crore in the same period last year. The turnaround was supported by a rise in revenue by 61% year-on-year to ₹2,889 crore. 

The management said that it is witnessing a continuation in the revenue momentum which started around the same time last year. Further, it is also broad-based growth across geographies in India and abroad. With the improvement in consumer sentiment and easing of lockdown, Kalyan Jewellers’ same store sales growth in the non-south and south markets was 72% and 44%, respectively.

Closing bell

Despite the rise in the index-heavy weight Reliance Industries (+0.9%), weakness in banks and metal stocks put pressure on the Nifty50. The market movement over the last two days indicates indecision and lack of clear direction. Meanwhile, the bounce back in the US Government bond yields could weigh on the global indices. As we come close to the end of the September quarter result season, Indian markets may again focus on international markets for directional cues.

Good to know

What is same store sales growth?

Same store sales growth (SSSG) refers to the rise in sales from the existing stores which were open during a particular period. This helps investors in discounting the impact of new store openings on the revenue. It also reveals the management’s effectiveness in increasing sales from the existing assets. Investors must examine this metric because it’s important to know whether the rise in revenue is taking place from existing locations or it is merely because of new store additions.

Yay 👍 or Nay 👎?

We'd love your thoughts on this market recap.

Haven't tried out Upstox yet? Click here to open your account now!

To catch our latest educational videos, join our Telegram channel here.

Disclosures and Disclaimer

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.