Choppy Friday

Nifty50: 17,516 ▼43 (-0.2%)

Sensex: 58,644 ▼143 (-0.2%)

• After a gap-up opening, the markets traded in choppy water and swung up and down for most part of the day.

• Meanwhile, 34 of the Nifty50 stocks ended in the red, indicating broad-based selling pressure.

• Next week, the RBI will announce its interest rate decision on Wednesday. Given the growth-focused Budget and the rising crude oil prices, the street believes the RBI could act soon.
  

  Among the Nifty sectoral indices, Metal (+1.1%) and FMCG (+0.1%) were the top gainers, while Realty (-2.7%) and PSU Bank (-1.9%) were the top losers.

For more updates on F&O, click here

Here are the top stories of the day.

Godrej Prop puzzles the street

The Mumbai-based realtor will invest ₹400 crore in DB Realty for a 10% stake. The market cap of DB Realty is ₹2,454 crore. Both the companies will jointly undertake slum rehabilitation and MHADA redevelopment projects in Mumbai.

The street gave a thumbs down to Godrej Properties’ foray into slum rehabilitation projects, which have a history of getting stuck and defaulting. Meanwhile, the share price of DB Realty has risen over 100% in 2022.

Powergrid adds more grids

The board of the electric power transmission company has approved investments worth ₹677 crore for transmission projects. Of that, ₹318 crore is for the transmission system for evacuating hydro-power in Chenab valley and ₹359 crore for evacuating power from solar energy zones in Rajasthan.

The transmission projects enable the supply of electricity from the power generation plants or surplus regions to power deficit regions in the country. Shares of Powergrid have risen nearly 43% in 2021. The stock currently trades at ₹209, which implies a dividend yield of 4.6% per share.

Devyani Int’l posts record revenues

The pizza hut and KFC franchisee brand operator posted record quarterly revenue of ₹624 crore, up 65% year-on-year. The growth was driven by new store openings and sustained momentum in demand. Its net profit rose 40% to ₹66 crore, supported by lower finance costs.

The company added 81 new stores in the December quarter, taking its total store count to 884. The stock, which got listed in August‘21, trades nearly 98% above its IPO price.

IPO Corner

According to the reports, LIC’s embedded value is over ₹5 lakh crore. Embedded value, which is the total of net asset value and present value of all future profits of a life insurance company. Based on this, the market valuation of the insurance behemoth could be determined. 

Meanwhile, the IPO buzz continues on the D-street. The public issue of Vedant Fashions, which is known for its Manyavar brand, was subscribed around 14% on day 1. Click here to apply for this IPO on Upstox.

Good to know

What is a dragon startup?

A dragon is a startup that raises $1 billion (about ₹7,500 crore) from investors in a single round in contrast to a unicorn that is a startup which is valued over $1 billion. Bengaluru-based e-commerce company, Flipkart became a dragon after it raised $1 billion in July, 2014. It happens when a clear category leader is established and only a handful of companies make it to this list.

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