Mt. 18k again!

Nifty50: 18,015 ▲ 86 (+0.4%)
Sensex: 61,275 ▲ 242 (+0.4%)

Hi there!

For most of us, #WorkLifeBalance is more of a myth. But here is an IT company in Madhya Pradesh that helps employees log off on time.

Wondering how?

Well, the company has installed special software that freezes the systems after shift hours end and reminds workers to go home. And there’s more, the employees don’t even have to answer calls and emails outside work hours!

A special round of applause to this company on behalf of all the tired souls out there. 

But before you wind up, take a look at what happened in the markets today.

• The markets ended higher amid sharp volatility.
• Out of the Nifty50 universe, 37 stocks advanced.
• The sticky US retail inflation fuelled rate-hike bets.

Among the Nifty sectoral indices, Realty (+1.3%) and IT (+1.1%) were the top gainers, while FMCG (-0.3%) and Pharma (-0.1%) were the sole losers.

What’s trending

⭐ Torrent Power’s electric rally

Shares of Torrent Power (10%) rose after it announced an interim dividend of ₹22 per equity share, including ₹13 as a special dividend. This comes after the company reported a 71% YoY rise in revenue from operations to ₹6,443 crore, while its net profit surged 88% YoY to ₹695 crore during the December quarter. Record date for the interim dividend is 22 February.     

⭐ NSE Gains, MCX loses

Traders will now be able to trade and settle WTI Crude and Natural Gas derivative contracts on the  National Stock Exchange of India (NSE). The exchange announced that it has signed a data licensing agreement with derivatives marketplace CME Group. The move is expected to boost commodity trading volumes on NSE.Following the announcement, shares of commodity exchange, MCX(-3.8%) tanked intraday. 

⭐ TCNS Clothing at 52-week low

Apparel retailer TCNS Clothing (-5.8%) stock hit a new 52-week low after its disappointing quarterly earnings. The owner of apparel brand ‘W’ saw net profit reduce 98% YoY to ₹0.5 crore in December quarter, due to higher depreciation and financial costs. In the same period, its revenue from operations dropped 6% YoY to ₹306 crore.  

⭐ Shyam Metalics enters new segment  

Shyam Metalics and Energy (+0.3%) has reported 13% YoY rise in revenue to ₹2,921 crore for the quarter ended 31 December 2022. Meanwhile, its net profit declined by 85% YoY to ₹65 crore, due to  lower sales volumes for iron pellets and sponge iron. The company said it has ventured into a new segment - colour coated sheets. It will make a capex investment of ₹603 crore for this.

In Focus

US Inflation is still high. Here’s why you should worry

In January, the prices of goods and services rose by 6.4% in the US, as per the latest data. This was higher than the expectation of 6.2% and also way above the Fed’s inflation target of 2%. 

Why should you care, you ask? Read on. 

Rate hike spree

Rising prices have been a concern in the US for a while now. So, the US Federal Bank has been on a rate hike spree. Just two weeks ago, it increased the key rate by 0.25%. This was its eighth consecutive rate hike to contain inflation. The Fed has already hiked rates by a total of 4.50%.

Tight labour market

During its February meet, the Fed noted that job gains have been robust in recent months, while the unemployment rate has remained low. Now isn’t that a good thing?

For the economy, yes. But for inflation, no! Here’s why: Strong job additions could lead to a rise in wages. This in turn may fuel consumption and thereby, inflation. In such a situation, the Fed would have no option but to keep increasing rates.  

The impact 

This could have an adverse effect on foreign inflows into emerging markets like India. ICDYK, higher key rate could translate into higher returns on US bonds and strengthen the dollar. So, investing in the US markets (equity and debt) becomes more attractive for foreign investors.

FII outflow

The Indian markets are already witnessing the effects of this foreign outflow. In February, the foreign institutional investors like mutual funds and pension funds pulled out more than ₹2,700 crore out of the Indian equity markets on a net basis. This means they have sold more shares than they have bought.  

So, with the earnings season almost coming to an end, all eyes will be on the key economic data points coming from the US and the Fed’s reaction to it. 

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What is Wholesale Price Inflation?

Wholesale price inflation (WPI) refers to change in prices of goods and services in wholesale markets over a given period of time. Wholesale prices are the prices that businesses pay for goods and services they purchase from other businesses. WPI is often used as an indicator of future consumer price inflation because if wholesale prices are increasing, it is likely that the cost of producing and selling goods and services will also increase, leading to higher prices for consumers.

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