Markets pull a stunner in the ‘death over’

Nifty50: 18,191 ▲ 68 (+0.3%)
Sensex: 61,133 ▲ 223 (+0.3%)

Hello!

Whether you are an employer or worker, the importance of a good CV in the job market is undebatable. For years, job seekers have kept CVs formal (and sometimes dull). 

Cut to 2022, when everything has gone ‘OTT’. Then why not CVs? A communication and brand management professional thought likewise. 

Replying to streaming giant Netflix's job post on LinkedIn, this Indian applicant shared a link to his video CV made using Netflix trailers! The applicant used trailers of as many as 15 Netflix shows to showcase his personality and professional skills. While the company is yet to respond to this out-of-the-box idea, social media has already given a big thumbs up to this creative chap. 

Meanwhile, Markets today were as dramatic. It had all the ingredients of a nail-biting, edge-of-the-seat-cricket match. Here’s a ball-by-ball update.

• After a weak opening, Markets languished but bounced back smartly in the last hour.
• From the NIFTY50 pack, 33 companies ended higher. 
• COVID and recession-related concerns kept up the pressure. 

Among the Nifty sectoral indices, Oil & Gas (+1.2%) and Metal (+1.0%) were the top gainers, while Media (-0.6%) and FMCG (-0.1%) were the top losers.

What’s trending

⭐ Electricity regulator’s ‘power play’

IEX (NSE): 140 ▲ 0.5 (+0.3%)

Power regulator, the Central Electricity Regulatory Commission(CERC) has extended  the ₹12-per-unit price ceiling on electricity traded through spot power exchanges. A power exchange is a trading platform where electricity producers and electricity consumers, like state electricity boards, sell or buy power.

The price cap means companies that generate electricity at a higher cost would have to stay out of the spot market. It is largely expected to hit those companies that use expensive fossil fuel or imported coal to generate power. In April 2022, CERC lowered the price ceiling in the power exchange from ₹20 to ₹12 per unit, amidst surging summer demand.

⭐ ‘Sone-pe-suhaga’ for gold retailers 

TITAN (NSE): 2,553 ▼ 27 (-1.0%), KALYANKJIL (NSE): 126 ▼ 5.1 (-3.9%)

Organised retailers of gold jewellery could see revenue increase 23-25% in FY23, as per an industry report. This could be due to pent-up demand led by wedding and festival season and a revival in discretionary spendings in 2022. Higher gold prices have further boosted revenue. 

However, the growth could moderate next fiscal to 8-12% given the high growth this year. Listed gold retailers like Titan and Kalyan Jewellers have also announced store expansion plans in FY23.

⭐ Booster pill for Dr Reddy’s

DRREDDY (NSE): 4,257 ▲ 5.0 (+0.1%)

Shares of Dr Reddy's Laboratories gained 2.3% intraday after the US court dismissed all claims against the company in the litigation with respect to Revlimid generic. Dr. Reddy’s, along with other generic pharma companies, were accused of shared monopoly in the sales of generic Revlimid oral drug in the US. Revlimid, a prescription medicine that’s used in treatment of multiple myeloma, had sales of nearly $2.58 billion in the US for the 12-month period ending June 2022.

⭐ TRIL bags new order

TRIL (NSE): 56.7 ▲ 1.5 (+2.8%)

Shares of Transformers and Rectifiers (India) ended nearly 3% higher after the company secured a new order from a central utility. The new order is for transformers worth ₹123 crore. This takes the total year-to-date order book of the company to ₹ 1,513 crore.

In Focus

2022: The year ‘IT’ all fell down 

2022 hasn’t been a great year for tech companies. The Nifty IT index has fallen by over 25% year-to-date compared to 4.8% rise in the Nifty50 index. Why are investors not swiping right on IT stocks? Here’s a download. 

One of the key factors for the correction in IT stocks is rising interest rates in the US and European markets. A series of rate hikes by the US Fed and other central banks has hit growth. 

With capital getting costlier, organisations are cutting spends. And the tech budget has not been spared either. 

How does this impact India’s IT sector? Business from US and European companies contribute more than 50% to India’s IT revenue. With budgets shrinking, Indian IT companies are witnessing smaller deals wins from their clients. In fact, revenue growth for the Indian IT sector in key markets like the US moderated to 17.6% in H1 FY23 from 19% in FY22.

Besides this, Indian IT companies are also fighting high attrition (the rate at which employees leave a company). In the September quarter alone, attrition across top 5 IT firms was above 20%. Human capital is the backbone of any tech company. A consistently high attrition rate necessitates frequent rehiring and training, which means more expenses. 

With revenue shrinking and costs increasing, the outlook for IT has not been rosy. Not surprisingly. investors turned cautious. The Nifty IT index recorded its worst fall since 2008. The top five IT stocks including Infosys, TCS, Wipro, HCL Tech and Tech Mahindra are down between 12 to 44% year-to-date.

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Good to know

What is the social stock exchange?

A novel idea floated by FM Sitharaman in her 2019-20 budget speech, the 'Social stock exchange' is finally ready to come into being. It will be a distinct division of the current stock exchanges and will be open for the listing of Not-for-profit organisations and for-profit social enterprises which work for the welfare of society. The idea is to help such companies by giving them more avenues to raise funds. 

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