Market Wrap-Up, Crypto World, IRCTC, and more



Weekly Market Wrap-Up
This week was all about the bounceback given the Festive season, and Indian Bourses closed higher after a two-week downfall. Also on Muhrat trading, the special 1-hour trading session started the Samvat 2078.

BSE Sensex crossed 60,000 points for the first time while Nifty 50 of NSE almost touched 18,000 points. Furthermore, BSE Sensex has jumped 16,500 (37%), and Nifty 50 5,149(40%) since the last Diwali. All in all BSE Sensex and Nifty 50 closed higher at 60,067.62 (0.41%) and 17,916.80 (1.21%) from the previous week.

On the sectoral indices front, all of them closed on a positive note on both the bourses (NSE & BSE), with Nifty Realty adding 10% and PSU Bank index up 4.5 percent in this week. Also, BSE Metal and Realty index rose over 100 percent, since the last Muhrat Trading on November 14, 2020.

IPO Market
This week five companies successfully concluded their public offerings (IPOs). Here is important information on some of them :

FSN E-commerce ventures (Nykaa)
This one was special since it is the first women-led startup to get listed on Indian bourses. Not so surprisingly, it saw 80 times of its subscription with the Retail segment witnessing a mind-boggling 12.2 times subscription. The grey market premium (GMP) indicates a strong listing with shares available at Rs. 630 premium, almost 50% from its price band of Rs. 1,085 - 1,125 apiece. In case you haven't subscribed to IPO and you wish to add this to your portfolio, read our article explaining the business of Nykaa here.

Fino Payment Bank
It was subscribed 2.03 times, with the retail segment seeing 5.92 times the quota available. GMP for Fino Payment Bank has no data to show, indicating a timid listing for the stock.

PB Fintech (Policybazaar)
It also saw a considerable demand with 16.59 times subscription. Retail segment seeing 3.31 times.

Crypto World - Squid Game
If there was anything other than the usual in the Crypto market it was the Squid Game meme token, which saw both historic rise and fall in a very short span of time. It went from $38.19 to $2,856.64 within half a day and from that to $0.0007926 within 5-minutes after their creators rug-pulled, meaning wandered off with a whole lot of money, like millions and millions of dollars. Moral? Don't invest your life savings into crypto and especially meme coins which are extremely unstable and invest only as much as you can afford to lose.

Elon Musk - David Beasley Twitter Banter
Recently David Beasley, the executive director of the United Nations World Food Programme (WFP) said in an interview that $6.6 billion could help fight world hunger — That $6.6 billion was just 0.36% of the top 400 US billionaires’ net worth and a fraction of what Elon Musk was worth. And this exploded like anything on Twitter after Elon Musk replied - "If WFP can describe on this Twitter thread exactly how $6B will solve world hunger, I will sell Tesla stock right now and do it."

But what David Beasley actually meant was that this $6.6 billion could help 42 million people in 43 countries who’re at risk from famine this year. All this is because of a misleading headline from a CNN article (Read here), it is a crazy world out there, mind you.

VAT Cut on Petrol and Diesel
With the rise in Petrol and Diesel prices recently, this decision of VAT cut on Petrol and Diesel was long due. The Centre announced a Reduction of VAT on Petrol and Diesel by Rs. 5 and Rs. 10 and urged states to do so on their part. While UT of Ladakh, Karnataka, and Puducherry are the states where the reduction has been maximum bringing prices down to almost Rs. 13 on average, States like Maharashtra, NCT of Delhi, Punjab, and Rajasthan among others saw no reduction whatsoever. This was announced on 3rd November 2021, i.e. Wednesday.

Curious Case of IRCTC
Here is a brief about what happened with IRCTC stock this week. IRCTC is a monopoly in Indian Railways, the only company allowed to sell Railway tickets online, carry catering business, and sell bottled water all across the Indian Railway so not surprisingly its shares are on a rally ever since it got listed in October 2019 with it doubling in value on listing day itself and reaching Rs. 6,000 by October 2021. But then the stock split was announced with a ratio of 1:5, meaning if you had one share of Rs 4,500 before you will now have 5 shares of Rs 900 and while this wasn't bad news as it was now more purchasable but the issue was you couldn't trade the shares as the process takes time. Then on 28th October 2021 came the announcement of Revenue sharing, Railway ministry announced that it will share the convenience fee in 50:50 with IRCTC, and on the next day when the market opened even if the investors wanted to react badly to this news they couldn't because they didn't have shares to exit. Realizing their mistake, Government quickly reversed their decision to have investors' confidence as there are a lot of PSU lined up for Privatisation.

Here's a fun fact to end today's briefing, Historically, IRCTC's revenue from convenience fees has been meager 15-20% of the total revenue, so even if the decision would have gone through it shouldn't have been that of a problem. Albeit the timing of the announcement was quite off.

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Disclaimer

The above information is to spread financial literacy. We are not SEBI registered financial advisors, kindly consult your financial advisor before making any investment decision.


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