Nifty50: 17,806 ▼ 320 (-1.7%)
Sensex: 59,845 ▼ 980 (-1.6%)
Namaste, friends!
Friday of contrasts - From the mind-boggling IPL bids (running into hundreds of crores) to the heartbreaking plunge of the markets. But, hang in there. After all, the weekend is here and 'tis the season to be jolly.
Merry Christmas in advance, folks!
- Sensex, Nifty 50 ended at a nearly two-month low.
- 47 companies out of NIFTY50 in red.
- Rising Covid cases in several countries spoil investor sentiments along with the overhang of rate hikes.
All the sectoral indices closed in red with PSU Bank (-6.0%) and Media (-4.9%) being the top losers.
| Top gainers | Today's change |
| Cipla | 1,125 ▲ 2.7 (+0.2%) |
| Divi's Laboratories | 3,503 ▲ 7.7 (+0.2%) |
| Titan | 2,488 ▲ 5 (+0.2%) |
| Top losers | Today's change |
| Adani Ports | 796 ▼ 60 (-7.0%) |
| Adani Enterprises | 3,650 ▼ 218 (-5.6%) |
| Hindalco | 432 ▼ 23 (-5.1%) |
What’s trending
⭐ Hotel stocks slide on Covid fears
INDHOTEL (NSE): 299 ▼ 4.2 (-1.3%), LEMONTREE (NSE): 72 ▼ 4.8 (-6.2%)
Covid resurgence in several countries could hit the hospitality sector. This week, shares of Indian Hotels, Lemon Tree Hotels, and Chalet Hotels have fallen 8%-16%. This is mainly over booking cancellation fears. Remember, the Indian government too has announced random Covid testing for international travellers arriving in India.
⭐ Govt’s mega defence purchase
BDL (NSE): 822 ▼ 14 (-1.6%), BEL (NSE): 96 ▼ 1.4 (-1.4%)
The Defence Ministry-led committee has okayed 24 capital acquisition proposals worth ₹84,328 crore. What stands out is the push for self-reliance, as over 90% of this amount will be procured from domestic manufacturers. The shopping list includes defence equipment like anti-ship missiles, light tanks, and combat vehicles among others.
⭐ Renewable energy sector to turn brighter
ADANIGREEN (NSE): 1,804 ▼ 176 (-8.9%), TATAPOWER (NSE): 197 ▼ 11 (-5.3%)
Amid the market gloom, here is something to cheer about. As per the Power Ministry, the Indian renewable energy sector could see an investment of around $25 billion in 2023! The main aim will be to achieve 500 GW of renewable energy capacity by 2030. Currently, India has 173 GW of clean energy capacity. Around 80 GW of capacity is under construction. Meanwhile, in FY22, investment in the renewable energy sector grew 125% year-on-year to touch $14.5 billion.
⭐ Retail sales beat pre-pandemic levels
India’s retail industry saw a staggering sales growth of 19% over pre-pandemic levels during the April–November period. This is per data released by the Retailers Association of India (RAI). Quick service restaurants (QSR) and footwear retail reported the highest growth of 30% compared to the 2019 i.e. pre-pandemic period. As per the RAI chairman, the Indian retail industry has changed dramatically in the last two years as more and more offline retailers are adopting new technologies.
In Focus
Volatile markets dampen IPO listing
Indian markets have been quite volatile this month. So far in December, the Nifty50 index is down 5%. Meanwhile, the volatility index, India VIX, is up 17% this month. While markets have taken a beating, recently-listed companies have been worst affected. Stocks of all five companies that got listed this month are trading below their issue price. Let's give you the details.
Shares of Dharmaj Crop Guard which got listed at a premium of over 12% on December 8 are currently trading below the issue price. Meanwhile, Sula Vineyards and Abans Holdings both listed at 1% premium, but are currently trading below the issue price.
While Landmark Cars debuted today, Uniparts India was listed earlier this month. Both listed at a discount and are trading lower by 9% and 3% compared to their issue prices.
One of the reasons behind subdued IPO listings could be unfavourable market conditions. Markets have been volatile, to say the least, in the last few weeks.
Radiant Cash Management is the latest company to go public as the year draws to a close. Further, there are about two dozen IPO applications, including Oyo Hotels and Tata Play.
Will 2023 be different for IPOs? For that, we have to wait and watch!!!
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Good to know
What Is The Attrition Rate?
Attrition rate is the rate at which people leave a company voluntarily. These people could be employees or customers. The employee-related metric is useful for human resources so that they can make hiring plans for vacant positions. A similar rate can be used to classify customers and track how many of them have shifted loyalties from one brand to another. In the recent past, Indian IT cos have been in the spotlight due to high attrition rates.
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