4 Reasons Why Sensex Plunged 1,159 Points Today
Closing

4 Reasons Why Sensex Plunged 1,159 Points Today

Indian share markets witnessed heavy selling today and ended deep in the red.

Benchmark indices broke psychological levels in trade amid broad-based sell-off as banking, metal and realty shares slumped.

The Sensex cracked below the 60,000-mark and fell sharply to a low of 59,778, while the Nifty nose-dived below the 18,000 mark to a low of 17,799.

At the closing bell, the BSE Sensex stood lower by 1,159 points (down 1.9%).

Meanwhile, the NSE Nifty plunged 354 points (down 1.9%).

IndusInd Bank and L&T were among the top gainers today.

Adani Ports and ITC, on the other hand, were among the top losers today.

The SGX Nifty was trading at 17,905, down by 311 points, at the time of writing.

The BSE Mid Cap index and the BSE Small Cap index ended down by 1.4% and 1.6%, respectively.

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Sectoral indices ended on a negative note with stocks in the realty sector, banking sector and power sector witnessing selling pressure.

Shares of IndusInd Bank and Grindwell Norton hit their respective 52-week highs today.

US stock futures are trading on a flat note today with the Dow Futures trading up by 26 points.

The rupee is trading at 74.92 against the US$.

Gold prices for the latest contract on MCX are trading down by 0.1% at Rs 47,927 per 10 grams.

Here are 4 Factors Why Indian Stock Markets Crashed Today

Weak Global Cues: Asian stock markets witnessed selling today, extending falls on Wall Street as investors awaited a monetary policy decision from the Bank of Japan and European Central Bank (ECB) later in the day.

The Hang Seng and the Shanghai Composite ended down by 0.3% and 1.2%, respectively. The Nikkei ended down by 1% in today's session.

FII Outflows: Relentless selling by foreign institutional investor (FIIs) is one of the key reasons for this correction in the market.

According to NSE data, FIIs sold Rs 1.9 bn worth of shares on Wednesday.

Inflationary concerns: Inflation and a slowdown in global growth momentum are other concerns amid expensive valuations.

India's central bank may have brought down inflation worries, but price pressures could potentially re-emerge soon.

On 8 October 2021, the Reserve Bank of India lowered the inflation forecast to 5.3% for the ongoing financial year from its earlier estimate of 5.7%.

However, while the central bank has projected inflation at 5.2% in the next financial year, its estimates show that consumer prices may heat up by the March quarter.

Profit booking: Apart from the above, losses were also seen as share market succumbed to profit-booking.

Most of the profit-booking was seen in the realty and banking sector today with stocks such as ICICI Bank and Adani Ports dragging the benchmark index lower.

We will keep you updated on how these factors develop in the coming days and what effect they have on Indian stock markets. Stay tuned!

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Speaking of stock markets, Brijesh Bhatia shares his short-term view on the Nifty, in his latest video for Fast Profits Daily.

Brijesh believes, despite the recent bearishness in the market, the Nifty is still in a bullish trend. In other words, the bulls are still in control of the Nifty.

Tune in to the video below to find out more:

In news from the finance sector, Bajaj Finserv was among the top buzzing stocks today.

Bajaj Finserv share price gains 1.3% after the company reported 13.8% rise in consolidated net profit to Rs 11.2 bn on a 19.6% increase in total income to Rs 180 bn in September quarter of 2022 compared to the last year.

Profit before tax in quarter two stood at Rs 27.9 bn, up by 29.5% from Rs 21.6 bn in the same period last year.

Bajaj Finserv said after the disruption caused by the second wave of the pandemic, recovery in the business gathered momentum on the back of reopening of the economy in most states, rapid vaccinations and policy support.

The non-bank lender said the business has now shifted focus to growth and remains 'cautiously optimistic' about its prospects for the remainder of the current financial year.

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The company's subsidiary Bajaj Allianz General Insurance reported a 28% year on year (YoY) rise in net profit to Rs 4.3 bn in the reported quarter. The business' gross written premium jumped 21% YoY to Rs 50.3 bn in the quarter.

Bajaj Allianz Life Insurance also reported a solid quarter of earnings as new business premium rose 62% YoY to Rs 22.3 bn in the quarter. Renewal premium in the quarter was up 22% whereas, gross written premium climbed 42%.

Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj group.

Bajaj Finserv share price ended the day down by 0.2% on the BSE.

Speaking of stocks, here is an illustration of the four phases that a stock goes through during its life cycle. The cycle repeats itself after the stock goes through all these for stages.

This cycle defines everything in markets. If you can master this cycle, then nothing can stop you from making huge profits.

If you're interested to know how a stock's life cycle can offer you the opportunity to make money in every phase, you can read about it in one of the recent editions of Profit Hunter: One Cycle That Defines Everything in the Markets

Moving on to news from the IPO space...

IPOs Worth Around Rs 70 Bn to Open in November First Week

Initial public offerings (IPOs) season is back with a bang as three companies are set to open their bidding process for public listing.

PolicyBazaar, Sigachi Industries and SJS Enterprises are looking to altogether raise Rs 66.3 bn in the first week of November. All three IPOs will open on 1 November and close on 3 November.

Meanwhile, investors are awaiting announcement on IPO dates of fintech players Paytm, MobiKwik and edible oil maker Adani Wilmar, which may also open in November.

PB Fintech, the parent company of online fintech marketplaces PolicyBazaar and PaisaBazaar, is coming with an IPO next week. The issue size of the IPO is Rs 57.1 bn.

While the Hyderabad-based manufacturer of cellulose-based excipients, Sigachi Industries, is looking to raise Rs 1.3 bn by selling 7.7 m shares. The company is engaged in the manufacturing of microcrystalline cellulose, the polymer that is widely used for finished dosages in the pharmaceutical industry.

SJS Enterprises, one of the leading players in the Indian decorative aesthetics products industry, will also open its IPO alongside PolicyBazaar and Sigachi Industries on 1 November 2021. The IPO consists of a pure offer for sale (OFS) of Rs 7.1 bn by Evergraph Holdings and Rs 900 m by KA Joseph.

How all the three IPOs sails through remains to be seen.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Corrects Over 750 Points; Realty and Oil & Gas Stocks Bleed
01:30 pm

Share markets in India have extended early losses and are presently trading deep in the red.

Ahead of the monthly expiry of futures and options contracts later in the day, benchmark indices plunged tracking weak global market mood.

Global stocks eased from record peaks as a stark reminder of supply chain snags in corporate earnings reports stalled their rally, while investors also looked to whether central banks may consider tightening monetary policy earlier than thought.

Asian shares plunged with the Shanghai Composite and Nikkei both falling over 1%.

Meanwhile, market experts also suggested that the upcoming IPOs of Nykaa and Paytm totalling around Rs 240 bn are likely to witness enthusiastic investor response and this will drain away some liquidity from the secondary market.

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The BSE Sensex fell almost 800 points, or 1.3% to 60,345 levels. Meanwhile, the NSE Nifty fell to 17,960-mark.

Presently, the is trading down by 710 points, down 1.2%. Meanwhile, the is trading down by 244 points.

The sell-off is seen particularly in the realty, metal and energy stocks.

Shares of ITC and Titan fell over 4%, while ICICI Bank and Axis Bank fell over 2%.

Broader markets also cooled down after the recent runup. Both, the BSE Midcap index and the BSE Smallcap index fell 1%.

In one of his videos for Fast Profits Daily, Brijesh Bhatia shares his short-term view on the Nifty.

Brijesh believes, despite the recent bearishness in the market, the Nifty is still in a bullish trend. In other words, the bulls are still in control of the Nifty.

You can watch the video here: The Bulls are Still in Control of the Nifty

More details to follow in the upcoming commentary.


Sensex Down 400 Points, Nifty Below 18,100; Adani Ports & Titan Among Top Losers
10:30 am

Sensex Down 400 Points, Nifty Below 18,100; Adani Ports & Titan Among Top Losers

Asian share markets are lower today, extending falls on Wall Street as investors awaited a monetary policy decision from the Bank of Japan and European Central Bank (ECB) later in the day.

The Nikkei is trading down by 1% while the Shanghai Composite plunged 0.9%. the Hang Seng is trading lower by 0.3%.

In US stock markets, Wall Street indices drew back from record territory on Wednesday, as enthusiasm over good earnings numbers was overcome by the grinding politics of Washington.

The Dow Jones fell 0.7% while the Nasdaq settled flat.

Back home, Indian share markets are trading deep in the red tracking Asian peers.

Bajaj Finserv, Adani Green Energy, Adani Total Gas, and NPTC are among companies that will announce their September quarter results today.

The BSE Sensex is trading down by 442 points. Meanwhile, the NSE Nifty is trading lower by 139 points.

IndusInd Bank is among the top gainers today. Titan and ITC, on the other hand, are among the top losers today.

The BSE Mid Cap index is down 0.6%. The BSE Small Cap index is trading lower by 0.9%.

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All sectoral indices are trading on a negative note with stocks in the realty sector and metal sector witnessing most of the selling.

Shares of IndusInd Bank and Heritage Food hit their 52-week high today.

The rupee is trading at 74.92 against the US$.

Gold prices are trading up by 0.1% at Rs 48,011 per 10 grams.

Speaking of stock markets, Brijesh Bhatia shares his short-term view on the Nifty, in his latest video for Fast Profits Daily.

Brijesh believes, despite the recent bearishness in the market, the Nifty is still in a bullish trend. In other words, the bulls are still in control of the Nifty.

Tune in to the video below to find out more:

In news from the retail sector, Titan is among the top buzzing stocks today.

Titan Company on Wednesday reported a nearly four-fold surge in its consolidated net profit at Rs 6.4 bn for the September quarter.

The net profit stood at Rs 1.7 bn in the same quarter last year.

The Tata group company's consolidated sales for the quarter grew 75.5% YoY to Rs 72.4 bn compared with Rs 41.3 bn in the same quarter last year.

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Titan's revenue excluding bullion sales grew 78% YoY, riding on the strong recovery in demand across its consumer businesses.

The company said its jewellery division is doing exceeding well, and other divisions are swiftly bouncing back to pre-pandemic levels.

Bullion sales for the quarter stood at Rs 3.9 bn.

Jewellery division witnessed a demand resurgence, registering 77% income to Rs 61.1 bn compared with Rs 34.5 bn in the year-ago quarter.

Its watches and wearables business recorded an income of Rs 6.9 bn, up 72% while the eyewear business recorded an income of Rs 1.6 bn, up 70% YoY.

Other segments of the company comprising Indian Dress Wear and, fragrances & accessories recorded an income of Rs 0.5 bn.

Here's what Managing Director CK Venkataraman said about the company's performance:

  • Titan's strong growth this quarter was underpinned by demand recovery being witnessed in all segments.

    Our stores were fully operational, returning to pre-pandemic normalcy in most parts of the country with a continued focus on health and safety of our customers, business partners and our employees.

Titan's store expansions gained traction during the quarter, which was partially disrupted in the pandemic period.

Titan shares are currently trading lower by 2.7%.

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Speaking of the country's largest watchmaker, here's an interesting data on Titan...

Even a tiny investment of Rs 1,000 per month in the stock of Titan, since 2002, would have led to mouth-watering returns.

Take a look at how the power of compounding has gone wild here...

Here's what Co-head of Research at Equitymaster, Tanushree Banerjee wrote about it in one of the editions of?Profit Hunter:

  • It's possible to?accumulate a few crores?by investing small amounts in good businesses. Especially when the business is in distress and comes with margin of safety in valuations.

    Like the stock in my latest special report -?First Stock to Potentially Rs 7 Crore Long-term Wealth. 

    Business headwinds and macro and regulatory issues have kept the stock out of favour in most of 2020.

    Given its pedigree, balance sheet strength and cash flows, the stock has a very high chance of rerating once the temporary clouds of uncertainty disperse.

    In fact, I believe that 2021 could be for this stock what 2004 was for Titan.

Moving on, in latest developments from the IPO space, Paytm is all set for its Rs 183-bn initial public offering (IPO) which will open on 8 November.

The mobile payments firm has set a price band of Rs 2,080-2,150 for the issue.

Do note that this will be India Inc's largest IPO, a record that was previously held by Coal India, which raised Rs 150 bn over a decade ago.

Paytm, which had planned a Diwali listing, got delayed on its plans by over a week following a delay in approval by the markets regulator.

The company is currently India's second most-valuable internet company, last valued at US$16 bn when it raised a billion dollars in November 2019 led by T Rowe Price, Discovery Capital and D1 Capital.

After the IPO, its valuation will touch US$ 20 bn.

Paytm was earlier planning to raise Rs 166 bn but revised the amount to Rs 183 bn following an increased investor interest.

As per the document, while the fresh issue is Rs 83 bn, the offer for sale (OFS) consists of Rs 100 bn which includes Rs 4 bn of aggregate amount of equity shares offered by founder Vijay Shekhar Sharma.

The company is expected to use the primary proceeds for growth including customer and merchant acquisition and investing in new business initiatives, acquisitions, and strategic partnerships.

Paytm had clocked revenue of Rs 31.9 bn for fiscal 2021 versus Rs 35.4 bn in the previous year. It narrowed losses to Rs 17 bn during the same period from Rs 29.4 bn in the previous year.

With a host of companies coming out with their public offers next month, it would be interesting to see how Paytm's IPO would sail through.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


SGX Nifty Trades Flat, Maruti Suzuki Results amid Chip Shortage, PolicyBazaar IPO, and Buzzing Stocks Today
Pre-Open

Maruti Suzuki Results amid Chip Shortage, PolicyBazaar IPO, and Buzzing Stocks Today

Indian share markets ended on a negative note yesterday.

After trading in a range throughout the session, benchmark indices slipped into red during closing hours as select financial and banking stocks extended losses.

At the closing bell yesterday, the BSE Sensex stood lower by 207 points (down 0.3%).

Meanwhile, the NSE Nifty closed lower by 57 points (down 0.3%).

Asian Paints and UPL were among the top gainers.

Axis Bank and Bajaj Finance, on the other hand, were among the top losers.

The BSE Mid Cap index ended on a flat note, while the BSE Small Cap index ended up by 0.3%.

Sectoral indices ended on a negative note with stocks in the metal sector, banking sector and energy sector witnessing most of the selling pressure.

IT stocks, on the other hand, witnessed buying interest.

Shares of SBI and TCI Express hit their respective 52-week highs.

At 8:00 am today, the SGX Nifty was trading up by 6 points, or 0.1% higher at 18,256 levels. Indian share markets are headed for a flat opening today following the trend on SGX Nifty.

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Gold prices for the latest contract on MCX were trading down by 0.2% at Rs 47,729 per 10 grams at the time of closing stock market hours yesterday.

Speaking of stock markets, Brijesh Bhatia shares his short-term view on the Nifty, in his latest video for Fast Profits Daily.

Brijesh believes, despite the recent bearishness in the market, the Nifty is still in a bullish trend. In other words, the bulls are still in control of the Nifty.

Tune in to the video below to find out more:

Top Stocks in Focus Today

Among the buzzing stocks today will be Maruti Suzuki.

Auto major Maruti Suzuki on Wednesday reported a 65.4% year on year (YoY) plunge in net profit at Rs 4.8 bn for the September quarter of 2022 compared to Rs 13.7 bn in the same quarter last fiscal.

Net sales for the said quarter declined 9.1% to Rs 193 bn compared to Rs 176.9 bn in the same quarter last year.

Adverse commodity prices and lower sales volume due to electronic component shortages (leading to lower capacity utilisation) hit the numbers, the automaker said in a BSE filing.

The carmaker sold a total of 3.8 lakh units during the quarter, constrained by a global shortage in the supply of electronic components.

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Sales in the domestic market stood at 3.2 lakh units. Exports sales came in at 59,408 units, the highest ever in any quarter.

An estimated 1.2 lakh could not be produced owing to the electronics component shortage mostly corresponding to the domestic models. The company had more than 2 lakh pending customer orders at the end of the quarter.

TTK Prestige share price will also be in focus today.

While announcing its earnings for the quarter ended September, TTK Prestige also unveiled that its board has approved the sub-division (stock split) of equity shares of the company.

The record date for the proposed for sub-division or split will be intimated in due course subject to compliance of necessary laws, the company informed in an exchange filing.

The board has approved split of equity shares of the company from face value of Rs 10 each into Re 1 each subject to the approval of members through postal ballot.

A company engages in stock-split decision to make its stock more affordable if its price levels are very high, which in thus would lead to increase in liquidity in the stock.

TTK Prestige's consolidated net profit for the second quarter surged 58% to Rs 1 bn compared to Rs 654 m in the same quarter last year.

Its revenue from operations increased to Rs 8.6 bn from Rs 6.4 bn YoY.

Paytm Hikes Issue Size to Rs 183 bn

With weeks to go for its initial public offering (IPO), Paytm has hiked its issue size to Rs 183 bn from the originally planned Rs 166 bn.

The increased portion will all come in the offer-for-sale (OFS) component with existing shareholders selling more of their shares.

The size of the primary offering will remain unchanged at Rs 83 bn, while the secondary sale size will now be Rs 100 bn.

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The biggest IPO in the history of Indian capital markets so far has been that of Coal India (CIL), which raised Rs 154.8 bn in 2010.

The Paytm issue which is expected to hit the market next month, will see the shares of One 97 Communications (Paytm's parent company) being listed both on the BSE and the NSE

Even before the increase in size, Paytm's offering was the largest in India.

According to sources, Paytm has decided to hike the issue size after receiving feedback that there is enough of an appetite for the company's shares at the right price.

Nearly half of the offer for sale is by Ant Financial and the remaining by Alibaba, Elevation Capital, SoftBank and other existing shareholders.

PolicyBazaar Parent's IPO to Open on 1 November 2021

The initial public offer (IPO) of PB Fintech, the operator of online insurance aggregator Policybazaar, will open on 1 November.

The IPO will close on 3 November and the date for finalisation of basis of allotment with the stock exchange has been stated as 10 November.

The company has fixed the price band at Rs 940-980 per share.

The issue size is 6,07,30,265 shares, with a face value of Rs 2 each.

Through this issue, PB Fintech will raise an amount of around Rs 57.1 bn.

The IPO comprises a fresh issue of Rs 37.5 bn, along with an offer for sale (OFS) of Rs 19.6 bn by existing promoters and shareholders.

Last week, the markets regulator had given the go ahead to PB Fintech to float its maiden public issue.

As of March 2021, over 48 m consumers have registered on Policybazaar platform and purchased over 19 m policies from insurer partners.

In fiscal 2021, the annual number of visits on Policybazaar website was 126.5 m.

How this IPO sails through remains to be seen. Meanwhile, stay tuned for more updates from this space.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.