Shillong, October 22: The past week witnessed market pressure, with the initial festive season optimism fading due to the Israel-Hamas conflict.
Markets saw losses in four out of five sessions, and the ongoing selling by Foreign Portfolio Investors (FPIs) during the start of the result season, while results remain fair, hasn’t provided strong positivity either.
By the week’s end, BSESENSEX closed with a 1.34% loss, shedding 885.12 points to reach 65,397.62 points. NIFTY also dropped by 1.06%, losing 208.40 points to close at 19,542.65 points. Broader markets like BSE100, BSE200, and BSE500 witnessed declines of 1.18%, 1.20%, and 1.09%, respectively. BSEMIDCAP lost 1.31%, while BSESMALLCAP, surprisingly, registered a marginal gain of 0.04%.
As per IANS, the markets have lost their momentum, particularly heavyweight stocks. The upcoming week includes the announcement of Reliance results on Friday after the market closes, posing the question of whether this will boost the markets.
The Indian rupee gained 0.17%, or 14 paisa, closing at Rs 83.12. In contrast, Dow Jones faced a challenging week, losing on three out of five trading sessions and closing with a 1.61% loss, a drop of 543.01 points to reach 33,127.28 points.
In primary market news, IRM Energy Limited’s issue, offering 1.08 crore shares at a price band of Rs 480-505, saw significant subscription, with QIB, HNI, and Retail portions being oversubscribed. Another issue from Blue Jet Chemicals Limited is set to open, offering 242.85 lakh shares in a price band of Rs 329-346, aiming to raise Rs 840 crore.
Blue Jet Chemicals reported revenues of Rs 721 crore, with an EBITDA margin of 30.39% and PAT margins of 22.20%. The EBITDA stood at Rs 219 crore, and PAT at Rs 160 crore. The reported EPS for FY23 was Rs 9.23, with a PE multiple in the range of 35.64-37.49.
The company operates in three business verticals, with the largest being contrast media, producing chemicals for MRI and CT scans. The second vertical deals with synthetic sugar sweeteners used in various product categories, while the third focuses on CDMO, creating value-added products for pharmaceutical players worldwide.
Although this issue is an offer for sale, the company is expanding its capacity, which will be operational in the fourth quarter of FY24, raising capacity from 1,100 KL to about 1,500 KL. There’s also a larger capex project underway, expected to be completed in 18-24 months, further increasing capacity to about 2,200KL and enabling the production of higher-value products.
The share is attractively priced, offering potential returns to shareholders.
The upcoming week features a trading holiday on Tuesday, limiting the trading week to four sessions. October futures expire on Thursday, with the NIFTY value ahead of the open series. Bulls have a slim lead of 0.10%, and given the negative FPI trend and the ongoing Israel-Hamas conflict, it remains uncertain whether they can maintain their position.