Nifty50: 18,385 ▼ 35 (-0.1%)
Sensex: 61,702 ▼ 103 (-0.1%)
Namaste, friends!
Japan is known as the ‘land of the rising sun’, but an unexpected policy tweak by its central bank took the ‘sunshine’ away from the Indian markets. Starkly different from what we saw yesterday, markets gave in to the global cues and nosedived. What stood out though was the dramatic pullback in the last hour of trading.
- Markets tumble after yesterday’s resilience.
- 39 companies of Nifty50 close in red.
- Covid resurgence in China & Japan’s policy tweak cause a volatile market.
Among the Nifty sectoral indices, Oil & Gas (+0.2%) and IT (+0.2%) were the top gainers, while Realty (-1.2%) and Media (-0.8%) were the top losers.
| Top gainers | Today's change |
| Adani Enterprises | 4,165 ▲ 89 (+2.2%) |
| TCS | 3,242 ▲ 39 (+1.2%) |
| RIL | 2,619 ▲ 20 (+0.7%) |
| Top losers | Today's change |
| SBI Life | 1,229 ▼ 38 (-3.0%) |
| Eicher Motors | 3,313 ▼ 75 (-2.2%) |
| UPL | 754 ▼ 15 (-1.9%) |
What’s trending
⭐ Reliance to reduce stake in Just Dial
RELIANCE (NSE): 2,619 ▲ 20 (+0.7%), JUSTDIAL (NSE): 606 ▼ 16 (-2.6%)
Reliance Retail, a wholly owned subsidiary of Reliance Industries, is planning to sell 2% stake in Just Dial, a local search and e-commerce service provider. The stake sale will take place through open market transactions by December 31. Reliance Industries, through its subsidiary, holds 76.9% stake in Just Dial. As per regulatory norms, the total promoter holding in a company should not exceed 75%. Hence, the stake sale is being done to achieve minimum public shareholding.
⭐ Maruti expects demand to drop
MARUTI (NSE): 8,510 ▼ 92 (-1.0%)
India’s biggest carmaker expects a slowdown in demand in 2023. Shares of Maruti Suzuki were trading lower today after its management said it expects demand for cars across categories to reduce. Pent-up demand had kept auto sales in the fast lane through 2022. But on Monday, the Maruti chairman cautioned that a uniform tax structure amounting to almost 50% across all segments is not good news for the auto industry’s growth. The heavy taxation has already hit sales of entry-level cars.
⭐ HGS approves buyback
HGS (NSE): 1,364 ▼ 38 (-2.7%)
Hinduja Global Solutions, a business process management entity, has approved a buyback of 60 lakh shares worth ₹1,020 crore. The company has set the buyback price at ₹1700 per share. This is a 21% premium to the closing price on December 19, the approval day.
⭐ Power boost for Salasar stock
SALASAR (NSE): 56 ▲ 4.9 (+9.4%)
Shares of Salasar Techno Engineering rose almost 11% intraday after the company bagged two new orders worth more than the company’s standalone revenue for FY22. The new orders worth ₹748 crore are from Pashchimanchal Vidyut Vitran Nigam. The company is mandated to develop electricity distribution infrastructure within 24 months. Salasar’s FY22 standalone revenue was ₹690 crore.
In Focus
Real estate looks at double-digit growth
Listed and big-size real estate companies could see sales grow by at least 25% in FY23, as per a new industry report. The report says companies like Macrotech Developers, Godrej Properties, Prestige Estates, Puravankara, Shriram Properties and Tata Realty could see double-digit sales growth despite rising interest rates. Here’s why.
- Strong sales momentum and increasing preference for larger homes due to hybrid working models are likely to drive double-digit growth for real estate players. In the first half of FY23, 11 large listed developers have already reported sales of ₹31,000 crore. The total sales is expected to reach ₹65,000 crore by the fiscal-end. That is a 110% growth over the pre-pandemic period.
- Shrinking debt burden, cheaper loans- Yep, while our EMIs are increasing, realtors are getting cheaper loans. The average cost of debt for developers has dipped to 8.1% in Q2 FY23, which is the lowest since the pandemic (9.64% in Q4 FY20). Why? Discipline. Developers have managed to reduce their debt burdens to $208 billion from $429 billion in Q3 FY21. Developers had used revenue from the skyrocketing sales volumes during the pandemic months to pay off loans.
Overall, the real estate sector seems to be on a good wicket, despite rising interest rates.
IPO corner
The IPO of financial service provider, KFin Technologies received an overall subscription of 70% on Day 2, with the retail segment witnessing subscription of 74%. Meanwhile, the IPO of Elin Electronics, an electronics manufacturing service provider, was subscribed 37% on Day 1. Click here to apply to these IPOs on Upstox.
Good to know
What is Cost of Debt?
Debt along with equity constitutes a company's capital structure. Most companies avail several types of debts such as bonds and loans to finance their overall operations. The cost of debt means the effective interest rate that a company pays on these debts. It also helps investors assess the default risk involved. The higher the cost of debt, the lower is the profit. An extremely high cost of debt could lead a company into a debt trap.
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