Ebb and flow

Nifty50: 17,786 ▲ 49 (+0.2%)
Sensex: 59,959 ▲ 203 (+0.3%)

Howdy, folks!

Markets may not be the only thing that changes colour from red to green or vice-versa. In a video that has garnered more than 24 million views, a woman’s white dress changed its colour instantly to pink when she walked out into the sunlight.

• Amid positive global cues, benchmark indices closed higher for the second consecutive day. 
• In all, 30 of the Nifty50 stocks closed in green.
• Investors await Europe’s CPI data to be released on Monday.

Among the Nifty sectoral indices, Auto (+1.6%) and Oil and Gas (+1.0%) saw the most gains, while Metal (-1.4%) and Pharma (-1.3%) were the top losers.

What’s trending

⭐ Maruti revvs up on strong numbers

MARUTI (NSE): 9,548 ▲ 506 (+5.6%)

Country’s largest car maker Maruti Suzuki’s net profit surged by a whopping 334% year-on-year (YoY) to ₹2,061 crore. This comes on the back of better sales volumes due to a pick-up in demand and improved capacity utilisation. Meanwhile, revenue from operations rose by 46% YoY to ₹29,931 crore. The company sold a total of 5.17 lakh vehicles in Q2, the highest ever in any quarter, increasing by 36% YoY.

⭐ Aditya Birla Sun Life AMC’s sales fall

ABSLAMC (NSE): 414 ▼ 19 (-4.3%)

Shares of asset management firm Aditya Birla Sun Life AMC plunged over 8% intraday. This comes after the company’s sales fell by 6% YoY to ₹311 crore. However, it reported an 11% YoY rise in profit at ₹191 crore. Meanwhile, revenue rose by nearly 4% YoY to ₹387 crore. The firm serviced around 8 million investor folios and had total assets under management of over ₹2.94 lakh crore in Q2.

⭐ Infibeam Avenues receives RBI nod

INFIBEAM (NSE): 17 ▲ 2.8 (+19.7%)

Shares of fintech firm Infibeam Avenues rose by nearly 20% after it received the Reserve Bank of India’s nod to operate as a payment aggregator. Following the approval, the company’s business will get a substantial boost to further expand its reach both in the online and offline segments. The company’s flagship brand CCAvenue is well placed to leverage the new role as a payment aggregator.

⭐ Russia becomes top oil supplier to India

India’s oil imports from Russia jumped by 4.6% to 896,000 barrels per day in September. As a result, the share of Russian oil in India’s total oil imports touched an all-time high of 23%, making it the second largest oil supplier after Iraq. Meanwhile, oil imports from the Middle East nations dipped to a 19-month low. In 2022 so far, Russian oil has become much cheaper due to discounts offered following sanctions by western countries over the Russia-Ukraine conflict.

In Focus

IMF lowers Asian growth forecast

The International Monetary Fund (IMF) has downgraded its economic growth outlook for the Asian continent, including India. As per IMF reports, Asia’s growth has been lowered to 4% this year from 6.5% in 2021. Similarly, India’s growth forecast has also been revised downward to 6.8% for FY23 (from 8.2% in April 2022). What are the key factors behind this downgrade? Let's find out 

According to the IMF, the Indian economy is expected to grow at a slower pace this year. Tightening of monetary policy along with slowdown of external demand is expected to weigh on growth. In addition, the report says a handful of Asian countries including India have seen strong outflows predominantly in the equity segment, which has revised the growth expectations. 

In the first half of 2022, Asia witnessed a strong economic rebound, which is losing momentum. One of the biggest factors hindering Asia’s growth prospects is a broad-based slowdown in China, the world's second-largest economy. 

Strict Covid lockdowns and growing number of defaults in the property sector are negatively impacting the Chinese economy. IMF expects China’s growth to slow to 3.2% this year, a 1.2% downgrade from its April projection. 

As per market experts, economic growth and stock market returns are interlinked. An overall slowdown in the domestic economy impedes consumer sentiments, which indirectly impacts corporate earnings and stock market returns.

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Good to know

What is capital adequacy ratio?

Capital adequacy ratio (CAR) is the ratio of a bank's capital to its risk-weighted assets and current liabilities. It is set by the RBI and is used to assess the ability of banks to absorb losses and avoid insolvency. The RBI has mandated a CAR of 9% for private banks and 12% for public sector banks.

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