Adani Ports to acquire AP port, Tata Motors’ global sales zoom & more

Nifty50: 16,983 ▼ 257 (-1.4%)
Sensex: 57,147 ▼ 843 (-1.4%)

Greetings, people!

It’s not just the markets where the bears are trying to get into the driver’s seat. In a video that has gone viral and triggered a laugh riot on the internet, a bear can be seen entering a car and sitting on the driver’s seat. It was trying to steal food from the car but was scared off by the owner.

• After a weak opening, benchmark indices closed in the red for the third consecutive day.
• In all, 47 of the Nifty50 stocks closed in the negative. 
• The Bank of England on Tuesday unveiled new measures to calm the markets and brought forward the budget date.

All of the Nifty sectoral indices closed in the red, with Realty (-3.0%) and Metal (-2.2%) witnessing maximum losses.

What’s trending

⭐ Adani Ports gets nod to acquire port in AP

ADANIPORTS (NSE): 797 ▼ 11 (-1.3%)

Adani Ports has received an approval from National Company Law Tribunal (NCLT) Ahmedabad and NCLT Hyderabad for acquiring the remaining 58% stake in Gangavaram Port for ₹6,200 crore. Earlier this year, it had acquired a 31.5% stake in the company from Warburg Pincus and a 10.4% from the Andhra Pradesh government. Gangavaram Port is an all-weather deep-water multipurpose port.

⭐ Tata Motors’ global sales zoom

TATAMOTORS (NSE): 391 ▼ 4.2 (-1.0%)

Tata Motors reported a 33% year-on-year (YoY) rise in its global sales, including that of Jaguar Land Rover, to 3,35,976 units in Q2. Global wholesale units of all Tata Motors’ commercial vehicles and Tata Daewoo range in Q2 stood at 1,03,226 units, up 16% YoY. Global sales of all passenger vehicles stood at 2,32,750 units, up 43% YoY.

⭐ Sobha’s Q2 sales rise

SOBHA (NSE): 620 ▼ 28 (-4.3%)

Real estate developer Sobha Limited reported total sales of ₹1,164 crore, a rise of 13% YoY during the September quarter. According to the management, rising household incomes, hybrid work model, and improved affordability helped the company achieve its highest-ever quarterly sales. The company also launched three new residential projects during the quarter.

⭐ GM Breweries' profit jumps

GMBREW (NSE): 595 ▼ 40 (-6.3%)

Alcoholic beverages maker GM Breweries reported a jump of 3.8% YoY in its net profit to ₹22 crore in Q2FY23. Its revenue from operations rose by 22% YoY to ₹141 crore, while total expenses surged by 26% YoY to ₹532 crore.

In Focus

Investors check into hotel stocks

As per a new industry report, Indian hotel industry continues to outperform despite inflation woes. Major hospitality stocks like Indian Hotels, Lemon Tree, and Chalet Hotels seem to have caught investors attention, rising in the range of 28-32% since April 2022.

In September, the sector witnessed a 3% rise in occupancy rates, while average room rates rose by ₹200 to nearly ₹6,000 as compared to the previous month. But what’s driving the hospitality industry to new highs? Let's explore. 

As per market experts, the hospitality industry is witnessing a strong demand because of a pick-up in leisure travel after the pandemic. Further, a steady economic recovery has led to a rise in business travel, including meetings, conferences and exhibitions.    

Upbeat domestic growth has led to high demand for hotel rooms, outstripping the supply. For instance, room demand increased by over 60% year-on-year as of July 2022, while room addition increased by only around 2%. As a result, the industry is getting back the pricing power, which can boost the future revenue and profitability.  

Some industry reports suggest that this trend is here to stay for the next 6-7 years as demand will continue to grow in double digits, while supply will grow at 3-4% annually. In addition, the ongoing festive season followed by the wedding season will keep the demand high.

IPO Corner

The IPO of market intelligence services provider Tracxn Technologies was subscribed by 54% on Day 2. Retail investors showed a strong interest in the IPO, with the retail segment being subscribed around 2.6 times.

Click here to apply for the IPO on Upstox.

Good to know

What is a DRHP?

When a company plans to raise funds through an initial public offering (IPO) it has to file a Draft Red Herring Prospectus (DRHP) with the market regulator SEBI. The document contains information about the company’s financials, business operations, its standing in the industry it operates in, promoters, etc. Besides this, it also includes why the company is planning to raise the funds from the public, how the money will be used and the risks involved in the investment.

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