NIFTY50: 19,646 ▼ 13 (-0.07%)
SENSEX: 66,160 ▼ 106 (-0.16%)
Hello, friends !
In a recent out-of-this-world discovery, NASA’s eye in the sky, the James Webb Space Telescope shared photos of two actively forming stars. The hi-res images show not one but two stars being born! Quite a spectacular event that takes twinning to the next level. Meanwhile, the markets weren’t at their stellar best today as they closed in the red. More on that later.
- Benchmark indices closed nearly flat after a choppy session, power stocks gained
- In all, 26 of the NIFTY50 stocks closed in the green
- Bank of Japan keeps its short-term interest rates unchanged at -0.1%
Among the NIFTY sectoral indices, Realty (+1.8%) and Media (+1.3%) were the top gainers, while IT (-0.8%) and Bank (-0.4%) were the top losers.
| Top gainers | Today's change |
| NTPC | 209 ▲ 7.6 (+3.7%) |
| Power Grid | 258 ▲ 7.6 (+3.0%) |
| Apollo Hospitals | 5,345 ▲ 130 (+2.5%) |
| Top losers | Today's change |
| Bajaj Finserv | 1,582 ▼ 31 (-1.9%) |
| HDFC Bank | 1,642 ▼ 30 (-1.8%) |
| BPCL | 373 ▼ 5.8 (-1.5%) |
What’s trending
⭐ Marico rises on robust Q1 results
Marico shares are up by 3.4% after the company reported a growth of 15.6% year-on-year (YoY) in consolidated net profit at ₹436 crore for the Q1FY24 from ₹377 crore in the same quarter last year. However, the company’s total revenue fell by 3.1% YoY to ₹2,477 crore. The domestic business registered a volume growth of 3%
⭐ Trident slips on weak Q1 results
Shares of textile maker Trident are down by 2.5% after the company reported its net profit fell by 27% YoY at ₹90 crore in Q1FY24. Total revenue was also lower by 11.6% to ₹1,478 crore. The underwhelming performance is attributed to weak demand in the yarn segment and cuts in customer spending due to inflationary pressures.
⭐ Indiabulls gains on fundraising plan
Shares of Indiabulls Housing Finance rose more than 9% intraday after its board approved fundraising plans worth ₹35,000 crore. This fundraise will happen through issuance of non-convertible debentures (NCDs). In addition, the company also announced a final dividend of ₹1.2 per share.
⭐ Intellect Design Arena soars on strong Q1 results
Shares of software and consulting firm Intellect Design Arena were locked in the 20% upper circuit after the company reported an 18% YoY growth in revenue at ₹639 crore in Q1FY24 as compared to ₹541 crore in the same quarter last year. Gross profit margins improved for another consecutive quarter to 56.8% Net profit increased by 36% YoY to ₹93 crore in the June quarter from ₹69 crore in the same quarter last year.
In Focus
Will Jio Financial disrupt the mutual fund industry?
Jio Financial Services and US-based asset management company BlackRock have joined hands to form a new entity “Jio BlackRock”. Following this announcement, listed mutual funds, including HDFC AMC, UTI AMC, Aditya Birla Sun Life saw 1% to 3% decline in share prices. Will Jio Financial disrupt the mutual fund industry? Let’s explore.
About Jio BlackRock
Jio BlackRock is a 50:50 joint venture that combines respective strengths of both companies to offer investment solutions. The companies are targeting an initial investment of $150 million each in the initial phase. This joint venture will combine BlackRock’s expertise in investment management, risk management and technology with Jio Financial’s digital infrastructure. It will also leverage Reliance Retail’s wide footprint of 18,000+ stores and Jio’s massive subscriber base.
This JV marks the re-entry of BlackRock into India’s asset management industry after five years. In 2018, the company ended its JV with DSP Group, which is one of the top asset management firms in India.
Why are AMC stocks under pressure?
Following Jio Financial’s foray into the AMC business, shares of major mutual fund companies witnessed a selloff today. Jio Financial’s entry is expected to increase competition within the industry. Market watchers believe Jio Financial could go the Jio telecom way with ultra low-cost plans, which could impact the revenue and profitability of existing players.
Will Jio Fin be able to crack the MF game?
Experts believe that Jio Financial may initially offer low-cost mutual fund products, like passive funds. This is because passive funds require lower initial investments as compared to active funds. Further, active funds also need up to three years of established track record to gain investor trust. Moreover, Jio Financial success will also depend on how the company navigates tight regulatory norms as well as distribution bottlenecks.
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