Last updated: 19 Nov, 2021 | 01:47 pm
On Monday, rising inflation spoiled investors' sentiment. The Nifty closed above the 18,100 mark. IT, FMCG, healthcare and consumer durable stocks advanced while PSU banks and metal stocks declined.
On Tuesday, the domestic equity benchmarks tumbled with the Nifty closing below the 18,000 mark. Selling in banks and oil & gas stocks put pressure on the indices. On the other hand, strength in IT and auto shares supported the barometers.
On Wednesday, the domestic equity barometers ended with modest losses. The Nifty closed below the 17,900 mark. After hovering near the flat line for most part of the day, the benchmarks tumbled in the last hour of the session. Realty, pharma and oil & gas stocks tumbled while auto again supported the indices.
On Thursday, the domestic equity benchmarks ended with modest losses, mirroring the weakness in other global indices. Barring the PSU Bank index, all the sectoral indices on the NSE ended in the red. The US stock market finished lower as investors opted to lock in gains on concerns about an earlier than expected rate hike by the U.S. Federal Reserve amid high inflation.
On Friday, the market was closed on account of Guru Nanak Jayanti.
The market ended 1.73% down this week.
- Nifty Auto was the only sector in green this week.
- Maruti Suzuki was the top gainer based on media reports that the company has received the state government's approval for setting up a third passenger vehicle manufacturing plant in Haryana.
- Commodity stocks saw pressure as the industries using these commodities like paint manufacturing saw increase in share price.
Here is a quick recap of the market moving developments:
High valuation and tapering concerns loom: Indian equities have come under pressure for their high valuations with five major foreign broking houses downgrading their outlook on the market in the past three weeks. In addition to that, the surge in the US dollar index this week on the back of US inflation data is seen as negative for emerging market equities like India. Brokerage firms Credit Suisse and Morgan Stanley recently suggested that investors may move away from emerging market equities as concerns rise over the slowdown in China, the expectations of a rise in US dollar over the coming months and expensive valuations of some of the markets.
Paytm’s weak debut: Paytm’s IPO was much awaited but its listing at a discount of 9% and falling more than 20% on listing day was a big disappointment. High valuation, loss making status, no clear business model and high cash burn are touted as the big reasons behind the fall in share price. Brokerage firm Macquarie has given a target price of Rs 1200 , down 40% from its issue price of Rs 2,150.
IPOs this week:
- Tarson products: The IPO of Tarsons products was subscribed 77.48 times. The issue opened for bidding on 15 November and closed on 17 November.
- Go Fashion: Go Fashion was subscribed 6.87 times till friday.
- Paytm: Paytm, the biggest IPO of India, listed at a 9% discount.
- PB Fintech: PolicyBazaar listed at a 17% premium to the issue price.
- SJS Enterprises: Shares of SJS Enterprises were listed at a discount of 0.37%
- Sigachi Industries: Shares of Sigachi were listed at a premium of 252.76% to the issue price.
Worst festive season for Auto Industry: The automobile industry has faced the worst festive season this year, in the last decade. The 42 day festive season saw PV retail sales declining (26% y-o-y), the two-wheeler sales also declined by more than 18% y-o-y. Semiconductor shortage, which was already a full-blown crisis, showed its true colours when in spite of an above healthy demand, Auto sector could not cater to customer's needs as SUV, compact-SUV and luxury categories witnessed a huge shortage of vehicles. On the other hand, entry-level cars saw subdued demand as customers in this category continued to conserve money due to their family's healthcare needs.
That’s all for this week’s market wrap. We will be back with more interesting market insights in the next week!
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