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Home / Markets / Stock Markets /  Sensex falls over 500 points, Dow futures down by 105 points

Share markets in India are currently trading on a negative note. 

The BSE Sensex is trading down by 555 points, down 0.9%, at 60,704 levels.

Meanwhile, the NSE Nifty is trading down by 146 points.

Kotak Mahindra Bank and Grasim Industries are among the top gainers today. Reliance and Dr Reddy’s Lab are among the top losers today.

The BSE Mid Cap index is trading down by 0.7%.

The BSE Small Cap index is trading up by 0.5%.

On the sectoral front, stocks from the software sector are witnessing most of the selling pressure.

On the other hand, stocks from the power sector are witnessing most of the buying interest.

US stock futures are trading lower today, indicating a negative opening for Wall Street.

Nasdaq Futures are trading down by 61 points (down 0.4%) while Dow Futures are trading down by 105 points (down 0.3%).

The rupee is trading at 74.78 against the US dollars.

Gold prices are trading up by 0.1% at 47,459 per 10 grams.

Gold prices in India were trading higher in Indian markets today following a positive trend seen in international spot prices as soft dollar made the metal cheaper for buyers holding other currencies.

Moving on to stock-specific news…

Among the buzzing stocks today is Tata Communications.

Shares of Tata Communications rose over 3% in an otherwise weak market today after the company’s net profit jumped 10.6% year-on-year (y-o-y) to 4.3 billion for the September 2021 quarter.

However, the company’s net revenue was down 5.2% y-o-y at 41.7 billion. 

Sequentially, the company’s revenue grew 1.7% while profit came in higher by 43.7% on account of a gradual recovery across both data and voice segments. 

Commenting on the results, A.S. Lakshminarayanan, managing director and chief executive of Tata Communications, said: “Delivering a sequential growth on a quarter-on-quarter basis after three-quarters of decline is a positive indicator which we will continue to build on.  The second quarter was marked by recovery with favourable underlying trends as economic activities normalize."

The company’s Ebitda (earnings before interest, taxes, depreciation, and amortization) for the quarter stood at 11.1 billion due to employee expenses and a reversal of provisioning for doubtful debts due to better collection efforts.
 The company said its net debt at the end of the quarter stood at 77.6 billion, down by 2.4 billion sequentially and 8.7 billion compared with the corresponding period last year, on the back of a better working capital mix and improvement in operating profit.
This came despite a dividend payout of 4 billion during the quarter. 

How the company performs in the next quarter remains to be seen. Meanwhile, stay tuned for more updates from this space.

At the time of writing, Tata Communication shares were trading up by 4.1% on the BSE.

Moving on to news from the travel support services sector…

Jubilant FoodWorks' net profit rises 58% y-o-y; beats estimate 
 

Jubilant FoodWorks reported a 58% y-o-y rise in net profit at 1.2 billion for the September 2021 quarter, which was above analysts’ expectations. 

The company reported a 36.6% y-o-y growth in revenue to 11 billion, which was also above the street’s estimate. 

During the quarter, the company saw a 43% jump in cost of raw material. The growth in input costs was significantly higher than the growth in revenues. 

Jubilant FoodWorks said that it undertook a one-time loss of 12.5 million to support its employees affected by the covid-19 pandemic during the quarter. The same one-time cost was 56 million in the previous quarter. 

The company reported a 33% y-o-y increase in operating profit at 2.9 billion in the reported quarter. However, the operating margin fell 67 basis points y-o-y to 26% on account of higher input costs. 

We will keep you posted on more updates from this space. Stay tuned.

Speaking of stocks, here's a pattern that if you see, you must sell your position. After all, exits are more important than entries.

In the chart below, we can see the head and shoulder pattern - the stock goes up, makes a high, falls a little bit, goes up to a higher high, does not make a higher low, rallies again, fails to make a new high, and then starts to break down.

Source: Equitymaster.
View Full Image
Source: Equitymaster.

This usually happens in a situation where a stock or index has typically been in a bull trend for a while. Spotting this correctly can help you save money.

This article is syndicated from Equitymaster.com

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