Auto stocks in fast lane

Nifty50: 17,999 ▼-110 (-0.6%)
Sensex: 60,322 ▼-396 (-0.6%)

The markets witnessed volatility and ended lower today. Of the Nifty50 pack, 37 stocks declined. 

Among the Nifty sectoral indices, only Auto (+2.4%) and IT (+0.4%) posted gains. Whereas, PSU Bank (-2.1%) and Oil & Gas (-1.3%) were top losers.

For more updates on F&O, click here.

Here are the top stories of the day.

Auto stocks in top gear

Maruti Suzuki (7.2%), Mahindra & Mahindra (2.8%) and Tata Motors (2.4%) saw strong buying interest on the buzz of improved situation on chip shortage issue across the globe. Market experts believe that car production may not be impacted by chip shortage after November. 

As per reports, Malaysian fabrication plants which were shut due to the pandemic are now seeing their man power back to 100%. These Malaysian plants which are hubs for these chips were shut due to rising cases. Meanwhile, investors flocked to the auto stocks and the top 4 gainers in the Nifty50 pack were auto companies.

Macrotech soars on fund-raising plans

According to reports, the Mumbai-based real estate developer will raise about ₹4,000 crore through the qualified institutional placement (QIP) route. The company will sell 7.5% stake for ₹1,184 per share. This is around 16% lower than today’s closing price of ₹1,407.

The management said these funds will be used to capitalise on significant growth opportunities such as acquiring land parcels, future expansion plan and deverlaging. Against this backdrop, shares of Macrotech Developers rose 13% intraday but later pared some of their gains and closed around 9.5% higher.      

Tarsons IPO receives strong interest

On Day 2, the Kolkata-based labware equipment maker’s IPO was oversubscribed more than 3.5 times. The public issue has received strong interest from retail investors with the retail portion being oversubscribed 4.6 times. The price band for ₹1,023 crore IPO is ₹635 to ₹662 crore. 

Besides this, Go Fashion (Go Colors), which is one of the largest women’s bottom-wear maker, will launch its ₹1,014 crore public issue tomorrow. The price band for this issue is between ₹655 and ₹690 per share. You can apply for the IPOs on Upstox.      

Closing bell

The indecisiveness that markets showed yesterday turned into weakness today. The pressure on the broader indices was mainly due to the weakness in banks, both private and public, and more than 2% fall in the index heavyweight Reliance Industries. Meanwhile, the buzz around rising inflation is triggering interest in Gold, which is typically considered as a hedge against inflation. Gold and silver prices have risen about 5% so far this month. 

Good to know

What is QIP?
Qualified institutional placement (QIP) is a way through which listed companies can raise capital from institutional investors like mutual funds and private equity players. A company can raise capital through this route by issuing equity shares or any other securities which can be converted into equity shares. The company usually sets a floor price for the QIP for the shares. Also, individual or retail investors are not allowed to participate in QIP.   

Yay 👍 or Nay 👎?

We'd love your thoughts on this market recap.

Haven't tried out Upstox yet? Click here to open your account now!

To catch our latest educational videos, join our Telegram channel here.

Disclosures and Disclaimer

Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.