Speed breaker

Nifty50: 17,656 ▼ 74 (-0.4%)
Sensex: 59,547 ▼ 287 (-0.4%)

Hey there, folks!

While there was not much excitement in the markets today, there was some on a highway in Chile. In a video that has gone viral, a group of robbers is seen throwing their loot out of their car on a highway to escape. The robbers, who were arrested later, learnt the meaning of ‘easy come, easy go’ the hard way.

• Benchmark indices erased early gains to close in the red, ending their 7-day winning streak. 
• In all, 32 of the Nifty50 stocks closed lower.
• Investors await the ECB’s decision on raising interest rates on Thursday.

Among the Nifty sectoral indices, PSU Bank (+3.5%) and Auto (+1.2%) saw the most gains, while FMCG (-1.0%) and Financial Services (-0.7%) were the top losers.

What’s trending

⭐ Reliance to commission natural gas block 

RELIANCE (NSE): 2,441 ▼ 38 (-1.5%)

Reliance Industries is set to operationalise its deepwater MJ gas condensate field in the Bay of Bengal region by the end of this year. As per the management the new field, which is part of KG-D6 block, will help boost the natural gas output to 30% of India's total output. This is the third and last of a set of discoveries that Reliance and its partner BP are developing in the eastern offshore block.

⭐ JSW Steel rises despite losses

JSWSTEEL (NSE): 644 ▲ 14  (+2.3%)

Shares of JSW Steel rose by over 3% intraday, despite reporting a consolidated loss of ₹915 crore for the September quarter. Meanwhile, its total revenue rose 28% YoY to ₹ 41,778 crore. A sharp decline in steel prices in the domestic market along with high power and fuel costs impacted the profitability. Despite losses, the company is firm on its full-year volume guidance of 24-25 million tonnes.

⭐ DLF’s profits surge

DLF (NSE): 369 ▲ 2 (+0.5%)

Real estate major DLF Ltd reported a 28% year-on-year (YoY) rise in its net profit at ₹487 crore during the September quarter. Meanwhile, its consolidated revenue fell over 12% YoY to ₹1,360 crore. However, the management stated the housing demand continues to remain buoyant. The company’s rental income grew by 20% YoY driven by an uptick in demand for office rental space across the portfolio.

⭐ IDFC Bank’s profit jumps

IDFCFIRSTB (NSE): 56 ▼ 1.9 (-3.2%)

Private sector lender IDFC First Bank reported a 266% YoY jump in its net profit at ₹556 crore. Further, its net interest income grew by 32% to ₹3,002 crore. Gross non-performing assets (NPAs) fell to 3.18% YoY from 4.27%. Net NPAs were also down at 1.09% YoY from 2.19%. The management said that going forward, it is optimistic about maintaining the growth momentum.

In Focus

Gold continues to glitter

Domestic gold sales are witnessing a robust rise during the ongoing festive season. Despite inflationary pressures, gold demand continues to remain resilient. But what are the key factors behind strong demand? Let's explore. 

As per the India Bullion & Jewellers Association (IBJA), gold demand during the ongoing festive season rose by nearly 35% year-on-year. The pickup in sales was driven by upbeat occasion-based consumption (Akshaya Tritiya and Dhanteras) along with high demand for bridal jewellery for the upcoming marriage season. 

Besides this, the recent correction in gold prices (which had fallen below ₹50,000 per 10 grams) and a favourable monsoon are supporting the demand sentiment. According to the Confederation of All India Traders (CAIT), the overall commerce during the two-day Dhanteras period was about ₹45,000 crore, out of which jewellery sales accounted for ₹25,000 crore. 

Market experts believe another key factor for the high demand for gold is that it is considered a good hedge against uncertainty. As a result, gold continues to retain its sheen this year amid current global economic uncertainty of surging inflation and interest rate hikes. 

Business commentary from listed companies like Titan and Kalyan Jewellers also echo similar sentiments. During the September quarter, Titan’s jewellery segment reported 18% YoY growth, while Kalyan Jewellers recorded consolidated revenue growth of 20%, mainly due to upbeat demand.

Going by the current trends, the gold demand may continue to remain on the higher side. However, if domestic inflation goes out of hand, then it might eat into people’s disposable income, directly impacting the demand-supply equation.

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Good to know

What is EBITDA margin?

The EBITDA margin measures a company's profitability at the operating level. EBITDA (or Earnings before Interest, Tax, Depreciation, and Amortisation) refers to a company's earnings from its core businesses before the deduction of interest on loans or taxes. The EBITDA margin is calculated by dividing a company's EBITDA by its total revenue.

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