Bears caught off guard

Nifty50: 17,123 ▲ 140 (+0.8%)
Sensex: 57,625 ▲ 478 (+0.8%)

Hola, people!

William Shakespeare once said, “What’s in a name?” Well, if you’re in India, it could mean a lot. An image of a ‘split AC room’ in a Mumbai hotel has gone viral on social media. What's so special about the room, you ask? Well, it had a single AC unit that was split into two rooms!

• In contrast to a fall in the global markets, benchmark indices closed in the green.
• In all, 42 of the Nifty50 stocks closed in the positive. 
• India’s retail inflation rate for September rose to 7.4% as compared to 7% in August.

Among the Nifty sectoral indices, Realty (+1.6%) and PSU Bank (+1.5%) were the top gainers, while Media (-0.07%) was the sole loser.

What’s trending

⭐  Life insurers’ new business premium rises

LICI (NSE): 617 ▼ 2.5 (-0.4%), SBILIFE (NSE): 1,210 ▲ 3.6 (+0.3%)

New business premium (NBP) of life insurance companies rose 17.3% year-on-year (YoY) to ₹36,366 crore in September, as per data released by the insurance industry regulator IRDAI. India’s largest insurer, LIC, reported a 35% jump in premium collections to ₹24,991 crore, while the combined collections of the remaining 23 private sector players declined by 8.9% to ₹11,375 crore.

⭐ Wipro’s profit slumps, but revenue grows

WIPRO (NSE): 408 ▲ 4.1 (+1.0%)

IT major Wipro reported a fall of 9% YoY in its consolidated net profit at ₹2,659 crore. Meanwhile, revenue from operations rose by 14.6% YoY to ₹22,540 crore. Attrition rate stood at 23% for the last twelve months. The management said that solid growth in bookings, large deal signings, and revenues underscored its improved market competitiveness and enhanced value proposition.

⭐ Tata Power’s sustainable energy push

TATAPOWER (NSE): 217 ▲ 0.7 (+0.3%)

Tata Power and Tata Motors have entered into a power-purchase agreement for a 7 MW solar power project at Uttarakhand. The project will generate 215 million units of electricity. In a separate development, Tata Power has also signed an agreement with 75F Smart Innovations India, a leading player in IoT-based building management systems, to jointly promote energy-efficiency solutions in the commercial building space.

⭐ Cargo boost for Gujarat Pipavav Ports

GPPL (NSE): 86 ▼ 0.2 (-0.2%)

Gujarat Pipavav Ports reported healthy numbers in its Q2 business update. The company handled 1.86 lakh twenty-foot equivalent units (TEUs) of containers. This is a jump of 18.5% year-on-year. In the dry bulk category, it handled 1.30 million metric tonnes as compared to 1.39 in the year-ago period. Its roll-on/roll-off was flat at 8,000 units.

In Focus

IMF trims India’s growth forecast

Recently, global financial institutions like the World Bank and International Monetary Fund (IMF) have trimmed India’s growth forecast for FY23. Last week, the World Bank cut India’s FY23 GDP forecast to 6.5% from 7.5%, while the IMF trimmed it to 6.8% from 7.4%. But why is this being done now, and how will it impact you as an investor? Let’s find out.

Both financial institutions believe that the Russia-Ukraine war, global monetary policy tightening and the economic slowdown in China could impact growth prospects for India as well as the world. In fact, the IMF predicts that global growth in 2023 will slow down to 2.7% from its earlier estimate of 2.9%. It further said that next year will feel like a recession for most countries around the world.

The Russia-Ukraine war is causing a severe energy crisis in Europe. As a result of the conflict, prices of natural gas and other key commodities have been pushed up, leading to inflation woes in the Eurozone and across the globe. Consequently, to tackle inflation central banks globally are raising interest rates, leading to economic slowdown. Thus, a combination of these factors is having a cascading effect on India’s growth.

IPO Corner

The IPO of market intelligence services provider Tracxn Technologies received a healthy response and was subscribed over 2 times on its last day. Retail investors showed a strong interest in the IPO, with the retail segment being subscribed around 4.8 times.

Good to know

What is real GDP?

Real GDP is a measure of all the goods and services produced in the country after adjusting for inflation or deflation, expressed in dollars. Economists prefer real GDP over nominal GDP as it accounts for price changes, reflecting a more accurate picture of production growth. How governments react to real GDP data can impact individuals and influence their investing decisions.

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