Top of the list was Zomato, which spurted nearly 9 per cent after the stock was included in the MSCI indices. ETMarkets.com in July had reported that
was likely to be inducted in the MSCI indices in August or November given its large free-float and its market capitalization.
Analysts now believe that the stock could also be included in the FTSE Russell indices. Both MSCI and FTSE indices are followed by the biggest exchange-traded funds around the world, which will drive huge inflows into the company’s stock.
According to some analysts, Zomato’s stock could see inflows of more than Rs. 1,500 crore from its inclusion in MSCI and FTSE indices going ahead. The Valuation Vigilantes are not going to be happy!
Vodafone Idea is off the ventilator
Besides ITC, if there is a stock that drives the emotions in the Indian stock market it is Vodafone Idea. And today was a good day for the beleaguered telecom company as its September quarter earnings showed that it is getting off life support and showing normalization in vital signs.
A few quarters ago, many had written the obituary for the third-largest telecom company in the country. However, with major help from the government and a refocused management, the company is showing signs of a turnaround.
In the quarter ended September, Vodafone Idea reported a 4.2 per cent sequential growth in consolidated operating profit, a 5 per cent rise in average revenue per user, and added nearly four million new 4G subscribers.
Nor surprise then that the company’s stock ended over 4 per cent higher leaving some of its staunchest believers in tears.
Bharat Forge suffers from chip shortage
Bharat Forge saw its stock end in the red despite a strong performance in the quarter ended September. The company reported a net profit as against a net loss in the year-ago quarter.
The auto ancillary company’s revenues soared 73 per cent in the quarter whereas operating margins expanded by 930 basis points to 21.4 per cent. And yet, the stock closed nearly 1.5 per cent lower largely because of what the company had to say about its future.
Bharat Forge said that while demand conditions are strong, the ongoing chip shortage globally will hinder its international operations. The company derives 25 per cent of its sales from exports and the company said that revenues from that segment will most likely fall in the coming quarters.
