Bulls’ charge halted

Nifty50: 18,118 ▼ 0.2 (-0%)
Sensex: 60,978 ▲ 37 (+0%)

Hello,

Popular international coffee chain Starbucks had a rough time on social media recently. 

Reason: It's their new ''Ajji (grandma) approved'' Filter coffee for which one needs to cough up ₹290+!

Starbucks' standee, advertising its new product, quickly went viral and the social media brigade was quick to take on the coffee chain in the most amusing ways possible.

While one user pointed out that ‘’there's literally no Ajji in God's green earth who'll approve a filter coffee for ₹290 +taxes'', another one joked, “Ajji will belt us if we say we bought filter coffee Ondu Cuppu for ₹300!''

JFYI, Starbucks has always been infamous for selling beverages at exorbitant prices.

Why don't you grab a hot cuppa as we give you all the headlines from the markets today?

• After a strong opening, markets moved downwards and closed flat.
• Out of the Nifty50 universe, 29 stocks declined.
• Indian investors ignored bullish cues from the US markets and are treading cautiously ahead of the Union Budget.

Among the Nifty sectoral indices, Auto (+1.2%) and IT (+0.7%) were the top gainers, while PSU Bank (-1.3%) and Realty (-1.0%) were the top losers.

What’s trending

⭐ Maruti Suzuki beats expectations    

The automaker's (+3.3%) net profit rose 132% YoY to ₹2,351 crore. This was higher than the street estimate of ₹1,851 crore. The management said that improved realisation (revenue per vehicle) and softer commodity prices supported margins. It has 3.6 lakh pending orders, which is more than two months' sales volume.   

⭐ Chalet shares jump 

Shares of the high-end hotel operator (4.5%) surged after it posted a net profit of ₹102 crore versus a loss in the same quarter last year. The management credited strong domestic business travel, rebound of the MICE (meetings, incentives, conferences and exhibitions) segment and higher average room rates for strong Q3 performance. 

⭐ Granules India’s Q3 profit rises

The pharma company’s (-1.6%) net profit rose by 23% YoY to ₹124 crore. The management said that the company continued to cater to the higher demand for paracetamol (used to treat pain and fever). It added that the company witnessed price and margin erosion in the December quarter and expects the trend to continue in Q4.  

⭐ PVR, Inox rise on SRK comeback 

Shares of multiplex chains – PVR (+3.5%) and Inox Leisure (2.0%) – rose ahead of Shah Rukh Khan-starrer Pathaan’s release on 25 January. The film is reportedly riding high by collecting ₹20 crore in advance ticket sales. SRK will be making a comeback to the big screen after a hiatus of four years.   

⭐ Welspun Corp rises on new order 

The pipe maker’s (0.8%) associate company bagged an order worth SAR 569 million (₹1,237 crore)  in Saudi Arabia. As per the agreement, the company will supply steel pipes for water transmission.

In Focus

Gold shines on Indian jewellers 

After a glittering 2022, gold is off to a good start this year too. Supported by the possibility of lower rate hikes and macro uncertainties, gold is currently trading close to its all-time-highs in India. 

This, along with other factors, indicates that listed jewellery makers including Titan, Kalyan Jewellers and Thangamayil could shine in the upcoming quarters. Let’s take a look:  

Yellow metal shines 

The steady rise in gold prices could translate into improvement in margins or profitability for jewellers. Inventory gains could also be in the offing. On the other hand, a sharp rise in prices of the yellow metal could dent demand to a certain extent. 

Strong demand  

But, the near-term demand is expected to remain robust due to the ongoing wedding season. After the pandemic, India’s big fat weddings are back! In its Q3 update, Titan’s management observed that the wedding sales grew in-line with the overall sales (11% growth YoY). The management also said that it is hopeful and optimistic of a very strong second half for weddings.

Studded segment

The growth in the studded segment could provide further boost to margins. The management of Kalyan Jewellers highlighted that the margins improved sequentially in the December quarter, driven by the improvement in the share of the studded segment. Similarly, higher value purchases in this segment was one of the reasons for double-digit growth in Titan’s jewellery business. 

Expansion spree  

Besides this, jewellers are on an expansion spree, which augurs well for their long-term growth as India’s love for gold is undiminishing. Titan’s jewellery division added 22 new stores in the December quarter, taking the total to 510 outlets. Kalyan Jewellers is planning to make rapid inroads in the non-south market and added 5 new stores in Q3FY23. It expects to open 11 new franchised showrooms across non-south markets in the coming three months.   

So, jewellery makers could glitter due to a combination of rising gold prices, higher profitability and expansion.

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Good to know

What is budget estimates?

Budget estimates is allocation of money to a particular ministry, sector or scheme. During the budget every year, the finance minister announces how much funds will be given for each task such as health and welfare schemes, education, defence and infrastructure. Click here to watch a Bollywood-style explainer on budget estimates..

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