Close call

Nifty50: 17,956 ▲ 12 (+0.07%)
Sensex: 60,298 ▲ 37 (+0.06%)

Hey, there!

They say happiness grows when you share things you love. While most of us love chocolates, we don’t always like sharing them. So imagine the plight of the chocolate distributor in UP when he realised chocolate bars worth ₹17 lakh were stolen from his godown!

• After a weak opening, markets witnessed buying in the second half of the trading session to close flat.
• The market breadth was nearly even with 24 of the Nifty50 stocks closing in the green.
• The US Fed said that the rate hikes could continue, albeit the pace could reduce in future.

Among the Nifty sectoral indices, Realty (+1.5%) and Metal (+0.9%) were the top gainers, while IT (-0.7%) and Oil and Gas (-0.6%) were the top losers.

What’s trending

⭐ Jio’s user base grows, Vodafone’s dips further

IDEA (NSE): 8.9 ▼ 0.1 (-1.1%), BHARTIARTL (NSE): 733 ▲ 10 (+1.3%)

Reliance Jio maintained its top spot by adding 4.2 million new subscribers in June 2022. Jio’s subscriber base now stands at 413 million. Meanwhile, telecom major Bharti Airtel added 0.7 million new subscribers, taking its total user base to 362 million. However, Vodafone Idea (Vi) slipped further and lost 1.8 million subscribers. In terms of market share, Jio leads with 36%, followed by Airtel at 31.6%, while Vi’s market share fell to 22.3%.

⭐ HAL expands footprint in Malaysia

HAL (NSE): 2,317 ▲ 26 (+1.1%)

State-owned aerospace and defence company Hindustan Aeronautics Ltd (HAL) is planning to establish an office in Kuala Lumpur, Malaysia. According to the company, the office in Malaysia will help it to tap opportunities for exporting its aircraft and weaponry to Malaysia. In October 2021, HAL had participated in a global tender floated by Malaysia for supplying 18 fighter aircraft. The company believes its Tejas light combat aircraft has a fair chance of selection as it meets all the required parameters. 

⭐ Power Mech bags order from Adani Group

POWERMECH (NSE): 1,187 ▲ 36 (+3.2%)

Shares of Hyderabad-based construction and services company Power Mech surged nearly 8% intraday. The company has bagged an order for five Flue Gas Desulphurization (FGD) projects worth ₹6,163 crore from the Adani Group. The order size is over 2 times its FY22 revenues. The management said it is targeting orders of around ₹10,000 crore for this year.

⭐ Shiprocket turns unicorn

ZOMATO (NSE): 66 ▲ 1.4 (+2.1%)

Zomato-backed logistics aggregator Shiprocket has received an investment of $32 million (nearly ₹259 crore) from Singapore-based Temasek and Lightrock India. The company’s valuation now stands at $1.3 billion, making it the 106th unicorn in the country. Startups valued at $1 billion or more are termed as unicorns.

In Focus

Retail consumption seeing a revival

Consumer demand is back with a bang. With inflation fears receding, spending across categories and regions is seeing a steady uptick. 

A recent survey by the Retailers Association of India reveals that retail sales in July 2022 were 18% higher than sales in July 2019. Ever since the Omicron variant subsided in February 2022, sales have been steadily inching higher than the pre-Covid period. 

Sales across categories witnessed a steady rise. Sales of sports goods performed the best, followed by footwear, apparel and jewellery.

Meanwhile, electronics and car makers are also anticipating a demand revival during the upcoming festive season. They have been ramping up their production by nearly 50% and building sufficient inventory, taking cue from recent Independence Day sales. 

Looks like the stage is set for blockbuster sales during the festive season. However, one would need to keep a close eye on inflation and agricultural output in the ongoing sowing season. Despite the promising signs, these factors have the potential to become party spoilers.

IPO corner

The IPO of electronic components maker Syrma SGS received strong response from investors. On its final day, the public issue was subscribed more than 32 times. Retail investors flocked towards the IPO with the retail quota being oversubscribed 5.5 times. Meanwhile, the portions for qualified institutional buyers and non-institutional investors were subscribed around 87 and 17 times, respectively. 

Good to know

What is an IPO allotment?

Allotment is the process through which shares in an IPO are alloted to investors. If the total number of bids made by the investors is less than the number of shares being offered, then all applicants get the shares they applied for. If the total number of bids received is more than the number of shares being offered, the allotment is done proportionately, based on the rules set by SEBI.

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