Weekly wrap: Nifty logs 2nd straight weekly gain; IPO buzz, macro data in focus

Weekly wrap: Nifty logs 2nd straight weekly gain; IPO buzz, macro data in focus

Last updated: 12 Nov, 2021 | 03:18 pm

Weekly wrap: Nifty logs 2nd straight weekly gain; IPO buzz, macro data in focus

On Monday, the equity barometers reversed early losses and ended with strong gains. Excise duty cut on fuel, strong PMI numbers and festive season sales data lifted sentiments. Nifty ended 151 points higher to reclaim the 18,000-mark. 

On Tuesday, key equity indices ended lower, tracking global cues. Globally, investors turned cautious ahead of the fresh inflation readings on Wednesday. Nifty closed 0.13% lower at 18,044.25.

The decline continued on Wednesday, ahead of key macro data in the global markets. PSU banks, metals and realty stocks dragged the indices lower.

On Thursday, the index ended with deep cuts on the back of a global sell-off. Inflation rising to a 30-year high of 6.2% in October spooked investors, who were concerned that the Fed may soon put an end to its pandemic-induced easy monetary policy. Nifty lost 144 points to close the session at 17,873.60.

On Friday, the index reversed losses tracking positive global cues. For the week, the Nifty settled 1.04% higher, while the Sensex gained 1.03%. This is the second consecutive week where the indices have posted gains.

Top gainers and losers

Here is a quick recap of the market moving developments

Positive global cues: Investor sentiment got a boost globally, after US drug manufacturer Pfizer announced that a clinical trial of its drug to treat Covid-19 showed an 89% reduction in the risk of hospitalisation or death among adult patients. China’s exports surged 27% in October as compared to the year ago period leading to a rally in Asian markets earlier in the week. Last Friday, the house of representatives also passed a $1 trillion infra bill. This package will provide new funds to various sectors such as transport, utilities and infra.

Big bang IPOs see traction: The week was marked by buzz around big bang IPOs including Nykaa, Paytm, Sapphire Foods and Latent View Analytics. Shares of Nykaa surged more than 82% on Wednesday, after its IPO to raise up to Rs 5,350 crore got subscribed by more than 81.7 times. Paytm’s IPO to raise up to Rs 18,300 crore got subscribed by 1.89 times. However, the major news from the primary markets was about Latent View Analytics. The company which is a leading pure-play data analytics player saw its IPO getting subscribed by 326.45 times, making it the most oversubscribed IPO in India’s market history.

Stock specific action: The week also saw some interesting developments in IndusInd Bank, Bandhan Bank and Zomato. IndusInd Bank shares have been in focus after whistleblower allegations of loan irregularities in the bank. Rating agency ICRA has downgraded the outlook on Bandhan Bank from ‘stable’ to ‘negative.’ After its recent IPO, Zomato shares assumed focus during the week, after the company’s loss widened to Rs 435 crore as compared to Rs 230 crore in the same period last year. When asked about the ballooning losses, Zomato’s co-founder reiterated the company’s long-term vision and said that just because it is now a listed company, the vision of acquiring growth does not change. “We are adamant that we will not let our IPO change anything, and we aren’t going to morph into a QSQT business (‘quarter-se-quarter-tak’),” co-founder Deepinder Goyal said in a blog post.

That’s all for this week’s market wrap. We will be back with more interesting market insights in the next week!