NIFTY50: 19,393 ▲ 83 (+0.4%)
SENSEX: 65,216 ▲ 267 (+0.4%)
Howdy, folks!
A successful launch of a lunar mission may be an achievement, but space scientists will remind you that making a soft landing on the moon is an even bigger challenge. This is exactly where Russia’s Luna-25 failed, as it crashed into the moon on Sunday. Now all eyes are on India’s Chandrayaan-3, which will attempt to land on the moon on Wednesday. Meanwhile, Jio Financial Services too had a rough landing on the stock exchanges today. More on that in a bit.
- Benchmark indices started the week on a strong note, with the SENSEX closing above the 65,000 level
- In all, 38 of the NIFTY50 stocks closed in the green
- Brent crude oil prices climbed more than 1%, surpassing $85 per barrel
Among the NIFTY sectoral indices, Metal (+1.3%) and IT (+1.0%) were the top gainers, while PSU Bank (-0.6%) and Media (-0.2%) were the top losers.
| Top gainers | Today's change |
| Bajaj Finance | 7,050 ▲ 188 (+2.7%) |
| Power Grid | 247 ▲ 6.4 (+2.6%) |
| Adani Ports |
857 ▲ 21 (+2.5%) |
| Top losers | Today's change |
| Reliance Industries | 2,519 ▼ 28 (-1.1%) |
| M&M | 1,538 ▼ 14 (-0.9%) |
| Britannia | 4,501 ▼ 34 (-0.7%) |
What’s trending
⭐Titan acquires additional stake in CaratLane
Titan Company will acquire an additional 27.18% stake in online jewellery retailer CaratLane from its founder and his family members for ₹4,621 crore in cash. After this transaction, Titan’s stake in CaratLane will increase from 71.09% to 98.28% on a fully diluted basis. Shares of Titan rose 0.9% higher today.
⭐ Bharat Forge soars on order win
Shares of Bharat Forge rose nearly 1% today after its wholly owned subsidiary Kalyani Strategic Systems won two export orders worth ₹850 crore for supply of components and armoured vehicle chassis. The orders will be executed within the next 18 months. For Q1FY24, Bharat Forge reported a 27.8% year-on-year growth in net profit at ₹311.5 crore, while its revenue rose 20.9% to ₹2,127 crore.
⭐ Tanla Platforms shares nosedive
Shares of the communication service provider declined more than 5% after its partnership with Vodafone Idea was terminated. In November 2021, the company had entered into an agreement with Vodafone Idea to offer platform and firewall services for two years, which was not extended beyond its expiration date in November 2023. The company expects an impact of ₹17 crore on its revenue and ₹9 crore on its profitability over a full quarter starting from November 2023.
⭐ Lemon Tree Hotels hits 52-week high
Shares of the Lemon Tree Hotels rose more than 3%, touching a new 52-week high today. This comes after the company announced the opening of a new 45-room hotel in Rajkot, Gujarat. This will be the company’s sixth property in Gujarat.
In Focus
Jio Financial stumbles on debut
The much-anticipated listing of Jio Financial Services (JFS) ended in an anticlimax today. The stock slipped 5% upon listing on the NSE, falling from ₹261.85 to ₹248.9 apiece. Why did the stock sink on its opening day? Let’s explore.
Stock faces selling pressure
In the special trading session held on 20 July, the share price of JFS was discovered at ₹261.85 per share. This price was much higher than the market estimates that ranged between ₹120–₹200 per share. As per experts, the stock faced selling pressure from existing investors of Reliance Industries, who waited for over 20 days for the stock to list. JFS shares remained locked in the lower circuit throughout the day with no buyers.
As per exchange regulations, JFS shares will be part of the NIFTY50 index for the next three days. Furthermore, for the next 10 trading days, the shares can be traded only on a delivery basis and will not be available for intraday trading.
JFS listing and impact on other NBFCs
With a market capitalisation of ₹1.6 lakh crore, Jio Financial Services is the third-largest NBFC in India after Bajaj Finance and Bajaj Finserv. In fact, shares of Bajaj Finance have declined by over 10% since 20 July, which was the record date for Jio Financial Services. However, following the subdued listing of JFS, shares of many listed NBFCs including Bajaj Finance, Shriram Finance, Cholamandalam Investment rose between 1% to 3% today.
Some experts believe Jio Financial may not be able to disrupt the NBFC industry in a way Jio Infocomm did to the telecom industry. This is because the NBFC industry is tightly regulated with a number of well established players. Also, the companies have to adhere to guidelines laid down by the RBI.
On the whole, JFS listing is the step in the right direction by Reliance Industries to unlock value for its shareholders. But the company has an uphill task ahead if it wants to make a dent in the financial services sector.
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