Clean sweep

Nifty50: 15,293 ▼ 67 (-0.4%)
Sensex: 51,360 ▼ 135 (-0.2%)

Hello, people!

It's natural for investors to get a little upset when the markets don't swing in their preferred direction. But a Dogecoin investor took it to a whole new level! He has sued Elon Musk for $258 billion, to retrieve the losses suffered by investors on the meme coin after Musk started promoting it on Twitter. 

In other news, as markets closed lower, investors felt short-changed, just like a man from Delhi, who ordered onion rings from a restaurant but received slices of raw onions!

• For the sixth consecutive day, markets closed lower in a range-bound session. Both the Nifty and Sensex touched fresh 52-week lows.
• In all, 35 of the Nifty50 closed in the red.
• With major central banks tightening their monetary policies, investors remain worried over the market movement.

Among the Nifty sectoral indices, Bank (+0.3%) and Financial Services (+0.3%) saw minor gains, while Oil and Gas (-2.2%) and Pharma (-2.1%) were the top losers.

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What’s trending

⭐ RIL-ying on crude margins 😎

RELIANCE (NSE): 2,605 ▲ 45 (+1.7%)

Reliance Industries was in focus on Friday as crude refining margins have been on a steady rise since the last few weeks. Oil refiners like Reliance Industries benefit from rising margins as they earn more from turning each barrel of crude into refined fuel products. The Singapore-Dubai Hydrocracking Refining Margin has grown 21% in the past month, due to the rise in demand for refined products globally.

⭐ Tata Power has big coal plans⚡

TATAPOWER (NSE): 211 ▲ 2 (+0.9%)

Tata Power is reportedly looking to import coal worth ₹12,000 crore from Indonesian mining company KPCin FY23. The deal helps ensure that Tata Power faces no shortage or interruptions in the supply of coal. Tata Power owns a 30% stake in KPC.

⭐ RITES wins new order 👍

RITES (NSE): 228 ▼ 4.5 (-1.9%); CONCOR (NSE): 616 ▼ 2.4 (-0.4%)

State-owned RITES (Rail India Technical and Economic Service Limited) was up 2% in early trade on Friday. This was after the engineering consulting firm won a ₹364 crore contract from the Container Corporation of India (CONCOR). The 10-year contract involves the operation and maintenance of 20 locomotives.

⭐ Banks staying in shape 💪

SBIN (NSE): 442 ▲ 0.9 (+0.2%); HDFCBANK (NSE): 1,296 ▲ 15.4 (+1.2%)

According to the RBI, the banking sector's gross non-performing assets (NPAs), or loans that are in default, were just below 6% as of the end of March 2022. This is the lowest level since 2016. It suggests that the sector has largely come out unscathed from the ill-effects of the pandemic. The RBI also said that the asset quality of banks has improved compared to pre-pandemic levels. Gross NPAs had peaked in 2018 at 11.5%.

⭐ Wipro partners with Eros Investments 🤝

WIPRO (NSE): 406 ▼ 15.9 (-3.7%)

Wipro and Eros Investments have partnered for developing a content-localisation solution using artificial intelligence and machine learning. The solution will automate the time-consuming process of subtitling and dubbing with near-human accuracy. The service will be available to media and entertainment companies.

In Focus

Telecom vs. Tech: The 5G Tussle

If you think 4G is fast enough, wait till you try the new 5G technology. While there’s no clarity on when the 5G will hit Indian smartphones, the government has taken the first step towards the implementation. It has recently approved the auction of 5G spectrum. So telecom firms must be rejoicing, right? Not exactly. Let us explain. 

The auction of the 72 GHz spectrum (or 5G spectrum), which is capable of offering ultra high-speed internet access, will commence on 26 July. Based on TRAI’s recommendation, the Union Cabinet has reduced the reserve price for auction by 39% as compared to prices set in 2018. In addition, successful bidders can make payments for spectrum over the 20-year time period.

However, tech companies like TCS and Google have joined the spectrum fray to make life harder for telcos. The government has begun conducting a demand study for the direct allocation of spectrum to big tech companies. 

Tech companies have been seeking direct allocation of spectrum for setting up their own private captive 5G networks for applications like internet of things (IoT) and AI. However, telecom companies have been opposing the move as it will adversely impact their enterprise business, which is a major revenue generator for telecom operators.

For the time being, the Department of Telecom (DoT) has said that to set up captive 5G networks, tech companies can take 5G spectrum on lease from the telecom companies. But the decision might change after TRAI’s ongoing demand study.

While 5G promises to revolutionise telecommunication for users, it also remains a bone of contention for the industry players. It remains to be seen how the story plays out.

IPO Corner

Deltatech Gaming, the subsidiary of casino operator Delta Corp, has filed its draft papers with SEBI for a ₹550 crore IPO. The IPO of the gaming company will be a combination of a fresh issue as well as an offer for sale. The money raised through the fresh issue will be used for the growth of the business.

Good to know

What is stagflation?

Stagflation, a word derived by combining ‘stagnation’ and ‘inflation’, refers to a situation in which inflation and unemployment are high and economic growth slows down. Stagflation can be a dilemma for the government since measures to combat inflation may worsen unemployment. On the other hand, policies to keep unemployment low could lead to the rise in inflation. The two major reasons for stagflation are poor economic policies and supply shock, which refers to the sudden increase or decrease in the supply of a commodity.

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