SGX Nifty Trades Flat, Maruti Suzuki Results amid Chip Shortage, PolicyBazaar IPO, and Buzzing Stocks Today

Thu, 28 Oct Pre-Open

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Indian share markets ended on a negative note yesterday.

After trading in a range throughout the session, benchmark indices slipped into red during closing hours as select financial and banking stocks extended losses.

At the closing bell yesterday, the BSE Sensex stood lower by 207 points (down 0.3%).

Meanwhile, the NSE Nifty closed lower by 57 points (down 0.3%).

Asian Paints and UPL were among the top gainers.

Axis Bank and Bajaj Finance, on the other hand, were among the top losers.

The BSE Mid Cap index ended on a flat note, while the BSE Small Cap index ended up by 0.3%.

Sectoral indices ended on a negative note with stocks in the metal sector, banking sector and energy sector witnessing most of the selling pressure.

IT stocks, on the other hand, witnessed buying interest.

Shares of SBI and TCI Express hit their respective 52-week highs.

At 8:00 am today, the SGX Nifty was trading up by 6 points, or 0.1% higher at 18,256 levels. Indian share markets are headed for a flat opening today following the trend on SGX Nifty.

Gold prices for the latest contract on MCX were trading down by 0.2% at Rs 47,729 per 10 grams at the time of closing stock market hours yesterday.

Speaking of stock markets, Brijesh Bhatia shares his short-term view on the Nifty, in his latest video for Fast Profits Daily.

Brijesh believes, despite the recent bearishness in the market, the Nifty is still in a bullish trend. In other words, the bulls are still in control of the Nifty.

Tune in to the video below to find out more:

Top Stocks in Focus Today

Among the buzzing stocks today will be Maruti Suzuki.

Auto major Maruti Suzuki on Wednesday reported a 65.4% year on year (YoY) plunge in net profit at Rs 4.8 bn for the September quarter of 2022 compared to Rs 13.7 bn in the same quarter last fiscal.

Net sales for the said quarter declined 9.1% to Rs 193 bn compared to Rs 176.9 bn in the same quarter last year.

Adverse commodity prices and lower sales volume due to electronic component shortages (leading to lower capacity utilisation) hit the numbers, the automaker said in a BSE filing.

The carmaker sold a total of 3.8 lakh units during the quarter, constrained by a global shortage in the supply of electronic components.

Sales in the domestic market stood at 3.2 lakh units. Exports sales came in at 59,408 units, the highest ever in any quarter.

An estimated 1.2 lakh could not be produced owing to the electronics component shortage mostly corresponding to the domestic models. The company had more than 2 lakh pending customer orders at the end of the quarter.

TTK Prestige share price will also be in focus today.

While announcing its earnings for the quarter ended September, TTK Prestige also unveiled that its board has approved the sub-division (stock split) of equity shares of the company.

The record date for the proposed for sub-division or split will be intimated in due course subject to compliance of necessary laws, the company informed in an exchange filing.

The board has approved split of equity shares of the company from face value of Rs 10 each into Re 1 each subject to the approval of members through postal ballot.

A company engages in stock-split decision to make its stock more affordable if its price levels are very high, which in thus would lead to increase in liquidity in the stock.

TTK Prestige's consolidated net profit for the second quarter surged 58% to Rs 1 bn compared to Rs 654 m in the same quarter last year.

Its revenue from operations increased to Rs 8.6 bn from Rs 6.4 bn YoY.

Paytm Hikes Issue Size to Rs 183 bn

With weeks to go for its initial public offering (IPO), Paytm has hiked its issue size to Rs 183 bn from the originally planned Rs 166 bn.

The increased portion will all come in the offer-for-sale (OFS) component with existing shareholders selling more of their shares.

The size of the primary offering will remain unchanged at Rs 83 bn, while the secondary sale size will now be Rs 100 bn.

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The biggest IPO in the history of Indian capital markets so far has been that of Coal India (CIL), which raised Rs 154.8 bn in 2010.

The Paytm issue which is expected to hit the market next month, will see the shares of One 97 Communications (Paytm's parent company) being listed both on the BSE and the NSE

Even before the increase in size, Paytm's offering was the largest in India.

According to sources, Paytm has decided to hike the issue size after receiving feedback that there is enough of an appetite for the company's shares at the right price.

Nearly half of the offer for sale is by Ant Financial and the remaining by Alibaba, Elevation Capital, SoftBank and other existing shareholders.

PolicyBazaar Parent's IPO to Open on 1 November 2021

The initial public offer (IPO) of PB Fintech, the operator of online insurance aggregator Policybazaar, will open on 1 November.

The IPO will close on 3 November and the date for finalisation of basis of allotment with the stock exchange has been stated as 10 November.

The company has fixed the price band at Rs 940-980 per share.

The issue size is 6,07,30,265 shares, with a face value of Rs 2 each.

Through this issue, PB Fintech will raise an amount of around Rs 57.1 bn.

The IPO comprises a fresh issue of Rs 37.5 bn, along with an offer for sale (OFS) of Rs 19.6 bn by existing promoters and shareholders.

Last week, the markets regulator had given the go ahead to PB Fintech to float its maiden public issue.

As of March 2021, over 48 m consumers have registered on Policybazaar platform and purchased over 19 m policies from insurer partners.

In fiscal 2021, the annual number of visits on Policybazaar website was 126.5 m.

How this IPO sails through remains to be seen. Meanwhile, stay tuned for more updates from this space.

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