Zomato arrives early, delivers big

Nifty50: 15,856 ▲+32 (+0.2%)
Sensex: 52,975 ▲+138 (+0.2%)

Despite a gap-up opening and positive closing, the participation was not broad-based. Infact, 28 of the Nifty50 stocks closed in the red.

Among the Nifty sectoral indices, Realty (+1.2%) and Bank (+1.0%) were the top gainers, whereas Media (-0.9%) and Auto (-0.3%) closed negatively. 

Here are the top stories of the day.

AGR woes continue for telcos

• The Supreme Court has dismissed the plea submitted by Vodafone Idea and Bharti Airtel to recompute and correct errors relating to the adjusted gross revenue (AGR) calculation. The news sent the shares of cash-strapped Vodafone Idea down by more than 9%. Meanwhile, relatively better funded Bharti Airtel’s shares managed to close flat. 
• AGR is a fee-sharing mechanism between the government and the telcos who shifted to the 'revenue-sharing fee' model from the 'fixed license fee' model about two decades back.

Zomato makes stellar listing gains

• The online food delivery platform’s shares debuted on NSE at a premium of 53% today. In comparison to the issue price of ₹76, the company’s shares listed at ₹116. This comes after Zomato's IPO was oversubscribed by 38 times last week.
• Meanwhile, the IPO season will continue on D-Street next week. Glenmark Life Sciences, a leading developer and manufacturer of active pharmaceutical ingredients, will launch its ₹1,513 crore IPO on Tuesday. The public issue will be open between 27 and 29 July, and you can apply for it on Upstox.   

Mphasis soars on strong Q1 results

• Shares of Mphasis surged over 4.7% today after it posted strong results for the June quarter. IT services provider reported a 7.2% QoQ growth in its consolidated net profit to ₹340 crore. Meanwhile, revenue from operations grew 6.6% QoQ to ₹2,691 crore. In constant currency terms, revenue grew 5.9% on a sequential basis.
• The company recorded strong revenue growth across business segments. It said that it has won orders worth $505 million in its Direct business in Q1, the highest ever in any quarter so far.

Closing bell

The markets closed nearly at the same point where they had opened today. Technically, this kind of movement indicates indecision and a stalemate between the bulls and bears. On a broader basis, the benchmark indices are again trading in a range and seeing a time correction. A breakout on either side will confirm the direction. Reliance Industries will declare its results today, which could help in giving a direction to the market. 

Good to know

What are AGR dues?
Adjusted Gross Revenue (AGR) dues refers to fees or a part of revenue, which all telecom operators must pay to the Indian government for using spectrum, which is publicly-owned. In 1999, the government replaced the fixed license fee model with the revenue-sharing agreement. However, there has been a dispute between telcos and the government over the definition of AGR, which is used to calculate the dues. While the government claims that it encompasses telecom as well as non-telecom revenue, the industry players claim that the AGR should only consist of revenue from the core telecom business. 

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