Carnage! 😨

Nifty50: 15,809 ▼ 430 (-2.6%)
Sensex: 52,792 ▼1,416 (-2.6%)

Jab ‘markets’ ho out of control, hoton ko karke gol… seeti bajake bol ‘ALL IS WELL’. Were you humming this song as the markets went into a spiral? Were you humming this song as the markets went into a spiral? We get you. With markets falling like a house of cards, we won’t blame you if you’re waiting for the weekend to escape this mayhem.

And while we wait for Friday night, let’s decode what went down in the markets today.

• Markets crashed today, mirroring weak trends in Asian stocks after an overnight decline in Wall Street, the worst since mid-2020.
• Meanwhile, the rupee hit an all-time low and closed at 77.73 against the dollar, the fifth record-low close in the last ten trading sessions.
• In all, 47 of the Nifty50 stocks closed in the red.

All of the Nifty sectoral indices ended in the negative, with IT (-5.7%) and Metal (-4.0%) falling the most.

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What’s trending

⭐Adani bets big on health ⛑

Adani Group is on a roll. After cement, the conglomerate has now ventured into healthcare with its wholly-owned subsidiary, Adani Health Ventures Limited. According to an exchange filing, the healthcare arm will set up and run medical and diagnostics facilities, health aids, research centres, and health tech facilities. According to a report, the healthcare industry is growing at a CAGR of 22% since 2016.  

⭐ Lupin slips to 2-year low 😮
Shares of pharma company Lupin fell 9% intraday after it delivered weak Q4 results. The company reported a consolidated loss of ₹512 crore, on higher manufacturing costs. Meanwhile, its revenue grew 2.6% YoY. However, the company's board maintained that it has a positive long-term outlook and recommended a dividend of ₹4 per share.

⭐ LIC Housing Finance hits a home run 🏡

LIC Housing Finance rose over 2% intraday after it posted strong Q4 results. The company's net profit rose almost three-fold to ₹1,118 crore year-on-year on lower reserves for potentially unrecoverable loans. In FY22, its home loan portfolio increased by 13% to ₹204,230 crore, as compared to last year. The company expects its loan book to grow by 15% by the end of FY23.

⭐ Shuffle at the top hits Indigo 😐
InterGlobe Aviation shares plunged 7% intraday after the company announced that CEO Ronojoy Dutta will retire in September. The company has appointed Pieter Elbers as the next CEO. Notably, the company's meeting to approve the Q4 financial results has been postponed from May 18 to May 25.

⭐ India to grow fastest despite the challenges 🏃

According to a UN report, India's growth will reduce to 6.4% this year compared to last year's 8.8%. However, it will still remain the fastest-growing economy in the world. The report said that high inflation and an uneven recovery in the labour market would impact consumption and investment, leading to slower growth. 

⭐Stepping on the gas 🍳

An LPG gas cylinder will now cost you over ₹1,000. Yes, you read that right. The price of domestic cooking gas was hiked by ₹3.50 per cylinder. This is the second price increase this month, after a ₹50 per cylinder hike on May 7. A non-subsidised LPG cylinder will now cost ₹1,003 in the national capital region. The same will cost ₹1,002.5 in Mumbai, ₹1,018 in Chennai, and 1,029 in Kolkata.

In Focus

Losing the IT factor

After a sharp rally last year, IT stocks seem to have hit the correction lane as worries of economic slowdown mount. The Nifty IT index is down 28% from its highest point this year, which was in January. But why are IT stocks falling? 

Earlier in the year, markets witnessed profit booking due to high bond yields (or the returns from investing in bonds), and the sector's shrinking margins. However, the recent bout of selling is being driven by expectations of a slowdown in the US economy. 

This could impact the revenues of Indian IT companies. About 50% of the revenues of top IT companies like TCS, Infosys and Wipro come from the US. Even in Europe, higher interest rates to fight soaring energy prices could bring the European economy to a crawl.

However, IT firms have remained upbeat while announcing their Q4 results. Infosys's management said that the demand environment hasn't been impacted so far. 

IT companies said that digital transformation deals—which have been the key drivers of growth—will remain strong for years to come, now that work-from-home has become commonplace.

IPO corner

The weakness in the markets seem to have rubbed off on the IPOs. On the final day. the IPO of Paradeep Phosphates barely scraped through. The public issue was subscribed 1.7 times. Similarly, the IPO of Ethos was subscribed around 41% on Day 2. Click here to apply for IPOs on Upstox. 

Meanwhile, India’s largest licensed certifying authority eMudhra will launch its IPO tomorrow. The price band for the ₹413 crore IPO is set at ₹243 to ₹256 per share. 

Good to know

What are Hrithik and Salman stocks?

Catchphrases are a hit among investors as well. And when CNBC’s Mad Money host Jim Cramer coined the term FAANG from the top five American tech stocks, Indian investors got inspired. Referencing Bollywood, the stocks under the ‘HRITHIK’ group include HDFC, Reliance, ICICI Bank or ITC, TCS, HDFC Bank, Infosys, and Kotak Mahindra Bank. On the other hand, stocks that fall under the ‘SALMAN’ group include SBI, Axis Bank, L&T, Maruti Suzuki, Adani Ports, and NTPC. These terms have now become a part of the colloquial lingo for investors.

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