After opening the trading day on a flat note, share markets in India are trading well below the dotted line in the morning trade. Sectoral indices are trading on a mixed note, with stocks in the software sector and stocks in the banking sector witnessing maximum buying interest, while stocks in the capital goods sector are leading the losses.
The BSE Sensex is down down by 137 points and the NSE Nifty is trading down by 54 points. Meanwhile, the BSE Mid Cap index is trading down by 0.2%, while the BSE Small Cap index is trading flat. The rupee is trading at 65.01 to the US$.
DLF share price plunged 5% in morning trade after the company’s net debt rose by Rs 9 billion during the September quarter to Rs 268 billion.
As per an article in The Economic Times, the borrowing could rise further to meet construction cost of its ongoing projects amid a demand slowdown in the property market.
DLF expects to reduce its debt significantly from the proposed infusion of over Rs 130 billion into the company by the end of this fiscal, mainly from promoters’ stake sale to GIC.
DLF reported 94% year-on-year drop in its consolidated net profit at 125.7 million for the quarter ended September. Total income for the period also declined 21% to 17.51 billion.
In news from stocks in the IPO space, shares of The New India Assurance Co. Ltd (NIA) debuted 10% lower on the bourses, after the general insurer saw its Rs 96 billion initial public offer (IPO) get subscribed 1.19 times earlier this month.
The New India Assurance share price is trading lower 8% on the BSE compared to the issue price of Rs 800, which was the upper end of the price band.
One space which tests the investor’s contrarian philosophy is the IPO space. The demand for IPO’s has reached sky-high levels. Avenue Supermarts was the first company this year to cross the 100-time subscription mark swiftly followed by CDSL and Dixon technologies lately, with MAS Financial Services being the newest entrant to the list.
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