Takes a breather

Nifty50: 17,745 ▼ 179 (-1.0%) 
Sensex: 59,601 ▼ 621 (-1.0%)

• After a gap down opening, the markets remained in the red throughout the day.
• The street expects the US Fed to raise interest rates sooner than expected. This acted as a sentiment spoiler.
• Top Indian IT companies will declare their results next week. Further, inflation data is also expected to be released. Traders must be prepared for a rise in the volatility.
• Among the Nifty sectoral indices, Media (+0.9%) and Auto (+0.5%) were the top gainers today. Whereas, IT (-1.5%) and Realty (-1.4%) were the top losers.

For more updates on F&O, click here.

Here are the top stories of the day.

Auto retail sales a mixed bag

As per auto dealers’ body FADA, despite the year-end discounts the car and two wheeler retail sales fell 11% and 20% year-on-year in December. The third wave threat, chip shortage and bad rural sentiments were cited as key reasons for the weakness.

Amidst this, the truck sales rose nearly 14% supported by the government’s road infrastructure push and improving freights. Meanwhile, the Nifty auto index is in top gear rising 3.5% so far this week. 

IndusInd posts robust Q3 numbers

In the December quarter, the private lender’s deposits grew 19% year-on-year to ₹2.8 lakh crore. Its CASA ratio marginally improved to 42% in Q3FY22 from 40% in Q3FY21. 

In the same period, the bank’s net advances also rose 10% year-on-year to ₹2.2 lakh crore. After a sharp 22% fall in November, its shares are now consolidating. 

Wipeout month for box office

At the time when the number of new cases in India have jumped 10x in the last 10 days, movie makers have pushed release of big budget films. January is now expected to be a washout month. 

This could dampen the hopes of the industry which, as per experts, was expected to earn ₹1500-₹2000 crore in the Jan-Mar quarter. Meanwhile, the multiplex stocks tell a different story. Shares of PVR and Inox leisure are up 6.5% and about 1& so far this week. 

Budget Buzz

As the third wave triggers a fresh set of restrictions, the hospitality sector is hoping that the government will provide some relief. In the upcoming budget, the hospitality players are seeking lower taxes and other incentives. The stakeholders believe that incentives such as interest-free loans, subsidies and reduction in tax structure will help the hospitality industry to recover and cover-up its losses.  

Good to know

What is a pivot?

Pivot is shifting a business strategy in a completely new direction. Pivoting results in a drastic change for the company in atleast one aspect of the business. Pivot can be a shift in target consumer, market segment or even a pricing strategy. Twitter which was originally Odeo was a platform designed to provide accessibility to podcasts. Today it is a widely used platform for idea dissemination, news and entertainment.

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• The markets rallied further with the Bajaj twins acting as show-stoppers
• Back from the new year holidays, foreign investors (FIIs) have been net buyers for the last three sessions
• The India VIX spiked 7% today, indicating that traders expect the volatility to rise in coming days 
• Among the Nifty sectoral indices, Bank (+2.3%) and Financial Services (+2.0%) were the top gainers. Whereas, IT (-1.9%) and Media (-0.4%) were the top losers.

For more updates on F&O, click here.

Here are the top stories of the day.

Bajaj Finance posts bumper Q3 

In the December quarter, the private lender’s  asset under management (AUM) jumped 26% year-on-year to ₹1.8 lakh crore. The company said that it is well capitalised and its capital adequacy ratio stood at 27%, which is way above the required 15%.

Also, the lender acquired 26 lakh new customers in Q3FY22, up 18%. Itss total customer base stands at 5.5 crore.

Thermax boils on order win

Shares of energy and environment solutions provider jumped 6% intraday as it bagged a ₹546 crore order. The order is from an Indian power public sector company to set up flue gas desulphurisation (FGD) systems.

FGD systems help to cut down sulphur oxide emissions at power plants. Thermax expects to complete the project in 30 months. Meanwhile, Thermax’s shares nearly doubled in 2021. 

Domestic steel consumption set to rise

As per industry reports, the domestic steel consumption is set to rise by 7% year-on-year in 2022. The demand is expected to be led by the government's infrastructure push and increasing demand from construction and engineering sectors.

For 2021, experts believe the consumption growth would be about 17% albeit on a lower base. Meanwhile, amidst the resurgence of new cases, the supply chain performance will play a crucial role in industry performance. Meanwhile, the Nifty Metal index was up 1.3% today.

IPO corner

Of the 12 companies that made their debuts on the stock exchanges in December 2021, three have delivered stellar returns. Supriya Lifescience, C.E. Info Systems and HP Adhesives have risen by 74%, 71% and 56%, respectively against their issue prices. 

On the other hand, Metro Brands, Star Health Insurance and Shriram Properties are trading below their respective issue prices. But the IPO party is far from over in 2022 with 23 companies expected to hit the bourse in Q4FY22. 

Good to know

What is India VIX?

The volatility index is termed as India VIX. It indicates the degree of volatility or fluctuation traders expect over the next 30 days in the Nifty50 Index. If the India VIX is at 20, it means that the trader expects a volatility of +20% and -20% from the current Nifty value over the next 30 days. Nifty and India VIX are indirectly correlated. High VIX indicates fear in the market while a low VIX indicates a possible buying interest.

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