As per the provisional closing data, the barometer index, the S&P BSE Sensex, fell 677.77 points or 1.13% to 59,306.93. The Nifty 50 index was down 185.60 points or 1.04% to 17,671.60.
In the broader market, the S&P BSE Mid-Cap index rose 0.16% while the S&P BSE Small-Cap index fell 0.38%.
The market breadth was negative. On the BSE, 1452 shares rose and 1796 shares fell. A total of 151 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.
Primary Market:
The initial public offering of fintech company Fino Payments Bank has been subscribed 42% so far. The portion allocated for retail investors was subscribed 2.27 times.
The issue opened for bidding today and it will close on 2 November 2021. The initial public offer (IPO) consists of a fresh issue to raise Rs 300 crore and an offer of sale (OFS) of 1,56,02,999 shares.
The initial public offering (IPO) of Nykaa, with a price band of Rs 1,085-1,125 per share, opened for public subscription yesterday, 28 October 2021 and will conclude on Monday, 1 November 2021. Ahead of its IPO, Nykaa on Wednesday said it has raised Rs 2,396 crore from anchor investors.
Nykaa IPO was subscribed 3.55 times with the retail portion fully booked with 5.95 times, NSE data showed. The portion reserved for employees has been subscribed 0.99 times and non-institutional investors (NIIs) 2.07 times.
Earnings Impact:
Dr Reddy's Laboratories rose 1.04% after the company's consolidated net profit rose 30% to Rs 992 crore on 18% increase in net sales to Rs 5763.20 crore in Q2 FY22 over Q2 FY21. The drug company's profit before tax rose 47% to Rs 1268.10 crore in Q2 FY22 over Q2 FY21. During the quarter, EBITDA was reported at Rs 1557.20 crore (up 22.88% YoY). The EBITDA margin stood 27% in Q2 FY22 higher than 25.9% in Q2 FY21 and 20.7% in Q1 FY22. Selling, General & Administrative expenses jumped 22% YoY and 6% QoQ to Rs 1595.10 crore. This increase was in line with the business growth and primarily attributable to royalty on sales, annual increments, investments in sales & marketing of our key brands and investments in digitalization. Research and Development (R&D) expenses rose 2% to Rs 446.30 crore in Q2 FY22.
Gail (India) added 0.71%. The PSU company reported 159% rise in consolidated net profit to Rs 2,883 crore in Q2 FY22 from Rs 1,112 crore in Q2 FY21. Net sales during the quarter increased by 67% YoY to Rs 21,758 crore. Profit before tax in Q2 FY22 stood at Rs 3,728 crore, up by 160% from Rs 1,432 crore in Q2 FY21.
Kolte Patil Developers rose 1.36% after the company reported consolidated net profit of Rs 17.70 crore in Q2 FY22 compared with net loss of Rs 21.87 crore in Q2 FY21. Revenue from operations surged 370.39% to Rs 303.78 in Q2 FY22 over Q2 FY21. Pre-tax profit stood at Rs 43.86 crore in Q2 FY22 against pre-tax loss of Rs 29.17 crore in Q2 FY21.
Voltas jumped 3.39% after the company reported 30% rise in consolidated net profit to Rs 104 crore in Q2 FY22 from Rs 80 crore in Q2 FY21. Total income for the quarter ended 30 September 2021 was higher by 5%, at Rs 1737 crore as compared to Rs 1651 crore in the corresponding quarter last year. Voltas said that the Unitary Cooling Products business made good recovery and achieved overall volume growth of 24% contributed by growth of 19% in room air conditioners (AC), 31% in commercial refrigeration products and 78% in air coolers. Growth in AC was led by sale in Inverter category AC.
Subex dropped 16% after the company's consolidated net profit tanked 60.65% to Rs 4.82 crore on a 7.49% decline in revenue from operations to Rs 86.30 crore in Q2 FY22 over Q2 FY21. Meanwhile, Subex announced the transfer of RMS business worth Rs 95 crore from Subex Assurance LLP, a material wholly-owned subsidiary of the company, to itself. The transaction is expected to be completed by February 2022.
UTI Asset Management Company rose 0.61%. The company reported 68% increase in consolidated net profit to Rs 199 crore in Q2 FY22 from Rs 119 crore in Q2 FY21. Revenue from operation rose by 38% to Rs 380 crore during the quarter, which includes revenue from Sale of Services of Rs 280 crore (up 41% YoY). Operating expenses increased by 21% to Rs 158 crore in Q2 FY22 as compared with Q2 FY21. Profit before tax in Q2 FY22 stood at Rs 225 crore, up by 54% from Rs 147 crore in Q2 FY21.
RBL Bank slumped 10.13% after the bank's net profit declined by 78% to Rs 31 crore in Q2 FY22 from Rs 144 crore in Q2 FY21. Total income rose by 2% YoY to Rs 2,568 crore during the quarter. Net Interest Income (NII) fell 2% to Rs 915 crore in Q2 FY22 from Rs 932 crore in Q2 FY21. Net Interest Margin (NIM) was 4.06% in Q2 FY22 as against 4.34% in Q2 FY21. Operating Profit rose 2% YoY to Rs 691 crore in the second quarter. Provisions (other than tax) and Contingencies increased by 34% to Rs 651 crore in Q2 FY22 from Rs 488 crore in Q2 FY21.
Motilal Oswal Financial Services rose 3.4% 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.
Stocks in Spotlight:
Tata Motors fell 0.99%. The automobile maker today announced the signing of an MOU with BluSmart Mobility for expanding their all-electric fleet multi-fold across Delhi NCR. As a part of this MOU, Tata Motors will deliver 3,500 XPRES T EVs to BluSmart Mobility. The XPRES -T EV was launched by the Tata Group company in September 2021. This contract marks a key milestone in the electric fleet market. as more customers now prefer to travel in environment-friendly vehicles, the auto maker said.
IRCTC declined 7.55%. The Ministry of Railways has decided to withdraw the decision on IRCTC convenience fee. Secretary of Department of Investment and Public Asset Management (DIPAM), tweeted today: Ministry of Railways has decided to withdraw the decision on IRCTC convenience fee. The stock slumped as much as 28.85% in morning trade to hit the day's low of Rs 650.10. IRCTC after market hours on Thursday informed that it will share revenues earned from convenience fees for bookings made on its platform in a 50:50 ratio with the Ministry of Railways, with effect from 1 November 2021.
Global Markets:
European stocks fell across the board while Asian markets ended mixed on Friday as traders digested a raft of U.S. and domestic corporate earnings.
The European Central Bank on Thursday decided to keep interest rates and its monetary policy stance unchanged, despite ongoing inflationary pressures.
Japan's factory output shrank for the third straight month in September as production in the auto sector was hit by a global supply shortage. Factory production slumped 5.4% in September from the previous month, official data showed on Friday.
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