Bears dominate

Nifty50: 17,660 ▼ 46 (-0.2%)
Sensex: 59,727 ▼ 183 (-0.3%)

Namaste, friends!

Do you know what day it is today? It's World Heritage Day! The day is dedicated to celebrating historic sites and raising awareness about the need to restore and preserve them.

From the Great Wall of China to the Taj Mahal, these treasures are vital to our global heritage. But some of these monuments have seen better days, like your grandpa's antique watch that desperately needs some much-needed care.

So, let’s take a moment today to appreciate the beauty and cultural significance of the ancient ruins and historical landmarks worldwide. Let's pledge to preserve them for our future generations! And now, let’s see how the markets performed today.

• Market extends losses for second day.
• Out of the Nifty50 stocks, 29 stocks closed in red.
• China’s economy advanced 4.5% in Q1 of 2023.
  

Among the Nifty sectoral indices, Pharma (+1.6%) and Realty (+1.0%) were the top gainers, while FMCG (-0.3%) and Media (-0.3%) were the top losers.

What’s trending

⭐ CRISIL shares tank post Q4 result

CRISIL (-4.3%) saw a drop in its share prices after the release of its March quarter results. Its consolidated revenues grew by over 20% YoY to ₹714 crore. For the same quarter, its net profit stood at ₹145 crore, up 19.8% YoY. As per management, demand for its services continues to be strong. However, the company remains cautious amid a slowdown in developed economies. The company also declared an interim dividend of ₹7 per share. 

⭐ Indian airline market sees shifts

Indian airlines experienced mixed fortunes in Q4FY23, according to data released by the Directorate General of Civil Aviation (DGCA). IndiGo increased its domestic market share to 55.7% from 53.8% a year earlier. Meanwhile, SpiceJet and Go First saw their market share decline due to financial and operational problems.    

⭐ Schaeffler India shares drop after Q1 numbers

The auto component maker (-2.9%) reported 8% YoY growth in its revenue to ₹1,693 crore during the first quarter. Meanwhile, its net profit rose 5.9% to ₹219 crore driven by growth in other income. The company follows a January-December financial year.  

⭐ 3i Infotech bags contract

3i Infotech’s shares rallied over 5% today. This comes after the company was awarded a ₹16.2 crore contract by Indian Oil Corporation. As part of the deal, 3i Infotech will provide managed services for data centres for a period of three years.

In Focus

Low discretionary spend: A fallout for multiple industries

According to a recent survey, six out of 10 Indians are cutting back on their discretionary spending. This comes after a year-long high inflation, which has put pressure  on the cost of living. Lower discretionary spending means cutting back on non-essential items, which  has implications for several industries that depend on consumer spending. Here are some sectors that could be impacted:  

Quick service restaurant (QSR) industry 

Reduced discretionary spending is likely to affect the demand scenarios in the quick service restaurant (QSR) space. According to experts, demand for fine dining restaurants is now tapering down. The dine-in business is down 5-15% for the industry.

In addition, the industry continues to face cost pressures, especially in dairy products, leading to an increase in raw material prices. The combination of these factors could weigh on industry revenue in the March quarter.  

Consumer electronics 

Changing consumer sentiment is also impacting the consumer durables industry. A slowdown in pent-up demand, lower discretionary spending and higher input costs are most likely to impact the industry’s Q4 earnings. 

Apparel companies 

Just like QSR and consumer durables, the apparel sector is also witnessing similar consumer sentiments. Apparel players see reduced ticket size and normalisation of consumer footfall as key challenges that could hit their Q4 earnings. At the same time, rising cotton prices are also a cause of concern for the industry.  

All in all, lower discretionary spending is likely to be a key challenge for several industries that rely heavily on consumer spending.   

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Phrase of the day

Going Long

When you buy a stock, futures or an option contract with the hope that its price will rise, it is called going ‘long’.  When should you go long, find out from this chapter What does going Long mean? 

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