The Nifty Metal index closed nearly 2 per cent lower, the worst sectoral performer on the National Stock Exchange, after several prominent broking firms and global rating agencies slashed their growth outlook for China because of a churn in the country’s property market.
China being the largest consumer of metals is a large export market for any commodity company and with domestic demand still some way off the pace, metal companies stare at a double whammy of weak prices and weak demand going ahead.
Accenture to glory
Global IT services giant Accenture’s strong August quarter and even stronger FY22 guidance reasserted investors’ optimism for the domestic IT pack. Accenture said it sees revenues growing 12-15 per cent in 2021-22, which is nearly double the average revenue growth for the company in recent years.
Investors now expect Indian IT services companies to replicate Accenture’s strong performance, if not better it. The Nifty IT index closed over 1 per cent higher, and was among the best performing sectoral indices on the NSE.
Reopen trades see profit-booking
Throughout August and September, shares of companies that benefit from the reopening of the economy and are in more contact-intensive sectors have seen a one-way rally. Their depressed valuations and signs of turnaround attracted investors in hoards.
Today, however, many of those bets were victims of profit booking as investors await better earnings delivery to further boost the stock prices. Shares of Lemon Tree Hotels, PVR, InterGlobe Aviation, Indian Hotels, and SpiceJet closed over 2 per cent lower.
A competitive ?
At least that’s what the Managing Director Ravinder Takkar expects the beleaguered telecom operator to be in four years. The government’s helping hand in terms of moratorium on dues will help the company generate cash, which Takkar expects to use in repaying debt and participating in the crucial 5G spectrum auction.
Investors are also backing Takkar to deliver on his words as the shares of the telecom company jumped 8.5 per cent to take their gains for the month to the north of 80 per cent.
