Indices pare initial losses; IRCTC down 18%

Indices sharply pared opening losses and traded near the flat line in morning trade. The Nifty traded above the 17,850 level. Metal, realty and PSU bank stocks advanced while private sector banks declined.

At 10:30 IST, the barometer index, the S&P BSE Sensex, was down 66.21 points or 0.11% to 59,918.49. The Nifty 50 index fell 26.60 points or 0.15% to 17,830.45.

In the broader market, the S&P BSE Mid-Cap index rose 0.09% while the S&P BSE Small-Cap index fell 0.26%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1289 shares rose and 1609 shares fell. A total of 150 shares were unchanged.

Reappointment of RBI Governor:

The Government on Friday reappointed Shaktikanta Das as the Governor of Reserve Bank of India for three years beyond 10 December 2021. In an official statement, the government said, "The Appointments Committee of the Cabinet has approved the reappointment of Shaktikanta Das as RBI Governor for a period of three years beyond December 10, 2021 or until further orders, whichever is earlier. He had assumed charge as the governor of RBI effective 12 December 2018.

Buzzing Index:

The Nifty Metal index added 1.13% to 5,607.35, snapping its two-day losing streak. The index lost nearly 5% in two days.

NMDC (up 5.94%), Tata Steel (up 1.55%), JSW Steel (up 1.08%), Vedanta (up 0.93%) and Jindal Steel & Power (up 0.9%) and Coal India (up 0.72%) were top gainers in metal space.

Stocks in Spotlight:

IRCTC slumped 18% after the Railway Ministry asked the company to share the revenue earned from convenience fee collected by the company in the ratio of 50:50 with effect from November 1, 2021. So far, the entire convenience fee went to IRCTC, as the ticketing system is run by it, while the rail fare went into the account of Indian Railways. The convenience fee is not part of the rail fare. It is for the service offered by IRCTC of booking a ticket on the web. Revenue from operation jumped 85.3% year-on-year to Rs 243.36 crore in Q1 FY22 over Q1 FY21. Out of the Rs 243.36 crore, the company's revenue from internet ticketing business was Rs 149.97 crore in Q1 FY22, accounting for almost 62% of total revenue.

Meanwhile, the media reported that the company's board will discuss convenience fee issue today. The company will reportedly ask the government to reconsider the decision.

Motilal Oswal Financial Services rose 4.05% to Rs 925 after the company's consolidated net profit rose 80.97% to Rs 536.51 crore on 63.72% increase in total income to Rs 1328.76 crore in Q2 FY22 over Q2 FY21. Profit before tax surged 119.32% to Rs 659.05 crore in Q2 FY22 over Q2 FY21. Operating profit (excluding gains on investments) for the quarter was highest ever at Rs 270 crore, rising 118% YoY. The company said that most of its businesses delivered strong and sustainable performance in Q2 FY22. The company's capital market business PAT grew 52% YoY and asset & wealth surged 226% led by 44% increase in AMC, 88% increase in wealth management and 12x growth in private equity business driven by strong profit on exit of investment.

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