SGX Nifty Up 48 Points, India's WPI Inflation, Tarsons Products IPO, and Top Buzzing Stocks Today

Tue, 16 Nov Pre-Open

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Indian share markets ended on a flat note yesterday.

Benchmark indices fluctuated between gains and losses amid volatility with selling seen in metal, telecom and PSU banking stocks.

At the closing bell yesterday, the BSE Sensex stood higher by 32 points (up 0.1%).

Meanwhile, the NSE Nifty closed higher by 7 points (up 0.1%).

Power Grid Corp and ONGC were among the top gainers.

Coal India and Tata Steel, on the other hand, were among the top losers.

The BSE Mid Cap index ended up by 0.4%, while the BSE Small Cap index ended down by 0.2%.

Sectoral indices ended on a mixed note with stocks in the healthcare sector and FMCG sector witnessing buying.

Metal and telecom stocks, on the other hand, witnessed selling pressure.

Shares of Bata India and Adani Enterprises hit their respective 52-week highs.

At 8:00 am today, the SGX Nifty was trading up by 48 points, or 0.3% higher at 18,187 levels. Indian share markets are headed for a positive opening today following the positive trend on SGX Nifty.

Gold prices for the latest contract on MCX were trading on a flat note at Rs 49,302 per 10 grams at the time of closing stock market hours yesterday.

Top Stocks in Focus Today

Among the buzzing stocks today will be Nykaa.

Shares of FSN E-Commerce Ventures (Nykaa) plunged after net profit of India's biggest cosmetics etailer was nearly wiped out in the three months ended 30 September.

Nykaa's net profit fell 96% to Rs 11 m in the September 2021 quarter on a year-on-year (YoY) basis and 69% sequentially.

The fashion and cosmetics online retailer, which hit Rs 1 tn in marketcap after listing on the bourses last week, saw its revenues increase 47% to Rs 8.9 bn on a YoY basis.

The company's marketing and advertising expenses grew 286% to Rs 1.2 bn in the September quarter, compared with Rs 315 m in the year-ago period.

In an exchange filing, Falguni Nayar, chief executive officer and founder of Nykaa said,

• We have maintained growth momentum in our beauty business, accelerated our fashion business, and focused on building the brand with strong marketing campaigns - both digitally and mass media.
  
  Increased marketing spends has led to acceleration of customer acquisition, also evident in the unique visitor and transacting customer metrics. The company continues to invest in expansion of retail stores and fulfilment capacity ahead of the festival season.

The fashion portal's beauty and personal care segment saw its gross merchandise value (GMV) grow 38% to reach at Rs 11.9 bn.

Annualised unique transacting customers reached 7.2 m, with YoY growth of 40% in beauty and personal care vertical, and 1.3 m in the fashion vertical with YoY growth of 417%.

Note that Nykaa has accelerated store expansion this quarter with 8 new physical retail stores across the country, including stores in Gwalior, Kochi, Mysuru, and Ranchi. Its total operational physical stores were 84 as of the quarter ended September.

Info Edge share price will also be in focus today.

Sanjeev Bikhchandani-led Info Edge saw its net profit rise 2,147% to Rs 73.7 bn YoY in the September quarter.

It reported an unrealised market gain of Rs 89.4 bn from its stake in foodtech company Zomato in the second quarter. The company registered a gain of Rs 3.6 bn from the sale of its shares in the Zomato IPO.

The company reported profit before tax (before exceptional items) of Rs 1.4 bn for the quarter ended September, compared to Rs 654 m in the year ago period.

Info Edge's revenue from operations rose 26% to Rs 3.6 bn in the September quarter, compared to the year ago period. Its operating earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 106.2% from Rs 516 m in quarter two of 2021 to Rs 1.1 bn in the September 2022 quarter.

Commenting on the results, Chintan Thakkar, CFO of Info Edge, said,

• We are excited to witness billing growth of 61.3% on YoY basis during the quarter, led by recruitment solutions 73.9%, 99acres 45.9%, and Shiksha 74.7%. As compared to pre-pandemic levels, billing growth is 33.9%, led by recruitment solutions 38.8% and 99acres 12.5%.

Tarsons Products IPO Sails Through on Day 1

The public issue of Tarsons Products, an Indian Labware company, received bids for 11.8 m equity shares out of 10.8 m up for grabs, subscribing 1.09 times on the debut day, 15 November.

The offer size has been reduced from 15.4 m equity shares earlier as the company raised Rs 3.1 bn from anchor investors on 12 November 2021.

The portion set aside for retail investors was subscribed 2.12 times while non-institutional investors portion was subscribed 17%.

Employees, for whom 60,000 equity shares are reserved, have put in bids of 24,332 shares. Qualified institutional buyers are yet to place in the bids.

The issue closes on 17 November 2021.

The company is planning to garner Rs 10.2 bn through the initial public offering (IPO), at an upper price band of Rs 662 per share.

Tarsons Products is engaged in the designing, development, manufacturing and marketing of consumables, reusables and others, including bench-top equipment.

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WPI Inflation Spikes to 12.54% in October

The wholesale price-based inflation spiked to 12.54% in October, mainly due to rise in prices of manufactured products and crude petroleum.

WPI inflation has remained in double-digit for the seventh consecutive month beginning April. Inflation in September this year was at 10.66%, while in October 2020 it was at 1.31%.

The high rate of inflation in October 2021 is primarily due to rise in prices of mineral oils, basic metals, food products, crude petroleum & natural gas, chemicals and chemical products etc. as compared to the same month of the previous year.

Inflation in manufactured items was higher at 12.04% in October, against 11.41% in the previous month.

In the fuel and power basket, the rate of price rise was 37.18% in October, against 24.81% in September.

Data released last week showed, retail inflation based on consumer price index (combined) rose to 4.48% in October, from 4.35% a month ago, as food prices inched up along with high input costs, fuel and commodity prices.

Speaking of inflation, Co-head of Research at Equitymaster Rahul Shah talks about the strategy which would work well in a high inflation environment.

Is a higher inflation regime finally here and if yes, how do we protect our portfolio against it? Rahul answers this question in the video below.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

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