Nifty hits record high; IT stocks tumble

Equity indices traded near the record high level in morning trade. The Nifty hit a fresh all time high of 17,986.55 in intraday trade. Barring the Nifty IT index, all sectoral indices on the NSE were in the green.

At 10:26 IST, the barometer index, the S&P BSE Sensex, was at 60,247.72, up 188.66 points or 0.31% at 60,247.72. The Nifty 50 index was up 76 points or 0.42% at 17,971.20.

In the broader market, the S&P BSE Mid-Cap index rose 0.37% while the S&P BSE Small-Cap index gained 0.89%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 2070 shares rose and 997 shares fell. A total of 183 shares were unchanged.

New Listing:

Shares of Aditya Birla Sun Life AMC were currently trading at Rs 706.50 apiece at 10:10 IST on the BSE, at a discount of 0.77% as compared to the issue price of Rs 712 per share. The scrip was listed at its issue price of Rs 712 per share. So far, it has hit a high of Rs 721 and a low of Rs 700 in the trading session. On the BSE, over 3.30 lakh shares of the company changed hands in the counter. The initial public offer (IPO) of Aditya Birla Sun Life AMC received bids for 14.59 crore shares as against 2.77 crore shares on offer. The issue was subscribed 5.25 times. The issue opened for bidding on Wednesday (29 September 2021) and it closed on Friday (1 October 2021). The price band of the IPO was fixed at Rs 695-712 per share.

Buzzing Index:

The Nifty IT index slumped 2.26% to 35,578.55, snapping its two day winning run. The IT index saw correction after rising 3.78% in two days.

Mphasis (down 4.58%), Mindtree (down 3.56%), Coforge (down 3.5%), L&T Technology Services (down 2.24%), L&T Infotech (down 2.2%) and Tech Mahindra (down 1.74%) were top losers in IT space.

TCS slumped 5%. The company's consolidated net profit rose 6.84% to Rs 9,624 crore on 3.21% increase in net sales to Rs 46,867 crore in Q2 FY22 over Q1 FY22. Constant currency revenue grew 15.5% YoY. Operating margin fell 0.6% YoY and it rose 0.1% quarter-on-quarter (QoQ) to 25.6% in Q2 FY22. All verticals showed strong, double-digit YoY growth. Growth was led by the manufacturing vertical (+21.7%), followed by life sciences and healthcare (+19%), retail and CPG (+18.4%) and BFSI (+17%). Communications & media (+15.6%) and technology & services (+14.8%) witnessed accelerated growth.

Stocks in Spotlight:

Reliance Industries (RIL) rose 0.95%. The company said that its subsidiary will acquire 40% stake in Sterling & Wilson Solar (SWSL) through a combination of primary investment, secondary purchase and open offer. Reliance New Energy Solar (RNESL), a wholly-owned subsidiary of RIL, executed definitive agreements with Shapoorji Pallonji and Company (SPCPL), Khurshed Daruvala and SWSL to acquire 40% stake post-money in SWSL through a series of transactions. SWSL will make a preferential allotment of 2.93 crore equity shares (equivalent to 15.46% post preferential share capital) at Rs 375 per share to RNESL. Further, RNESL will acquire 1.84 crore equity shares from SPCPL (equivalent to 9.70% post preferential share capital) at Rs 375 per share. RNESL will also make an open offer to acquire 4.91 crore equity shares of SWSL at Rs 375 each, representing 25.9%. RNESL will hold 40% of the equity capital of SWSL, consequent to acquisition in the open offer, follow-on acquisition of shares from SPCPL and Khurshed Daruvala, and sell down, if any required. Shares of Sterling & Wilson jumped 11.98% to Rs 486.50 on BSE.

Solar Industries India jumped nearly 7%a after the company announced that it received orders worth Rs 1,471 crore from Coal India (CIL) to supply bulk explosives over a period of two years.

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