First Day, First Show, Superhit

Nifty50: 17,625▲+271 (+1.5%)
Sensex: 59,183 ▲+929 (+1.6%)

• The markets have started 2022 with a bang.
• 44 of the Nifty50 stocks closed in the green.
• The manufacturing sector continued to expand for the sixth consecutive month. In December 2021, the manufacturing PMI stood at 55.
• Any reversal in the foreign institutional investors (FIIs) selling trend could act as a strong sentiment booster.
• Among the Nifty sectoral indices Nifty Bank (+2.7%) and Financial services (+2.4%) were the top gainers. Whereas, Pharma (-0.4%) was the top loser.

For more updates on F&O, click here.

Here are the top stories of the day.

Eicher Motors ride on Royal Enfield numbers

The Royal Enfield maker was amongst the top gainers in the Nifty50 pack as it showed a 43% month on month rise in two-wheeler sales. Similarly, its commercial vehicles sales also bounced 50%. 

Even on an annual basis, it has reported volume growth. Meanwhile, during its September quarter results the management had highlighted that it saw chip shortage waning and vehicle production improving going forward. 

Housing sales beat pandemic blues

As per industry experts, housing sales across top 7 cities in India rose 71% year-on-year in 2021.

Low interest rates on home loans, pent-up demand from 2020, stamp duty cuts, preference for extra space amidst work-from-home were some of the reasons for strong rise.  Meanwhile, Nifty Realty Index broke its 11-year high and rose 54% in 2021. 

Turbulence in Airline stocks

Despite the high-flying broader markets, shares of low-cost carrier airlines witnessed selling pressure as the aviation turbine fuel (ATF) prices rose nearly 3%. The hike is on account of international oil prices firming up. 

To make the matter worse for the air carriers, there is a spike in new cases over the last couple of days. This poses a risk to demand and could again hurt air traffic.

IPO corner

The IPO party is far from over. More companies are expected to tap the equity markets this year to raise money. According to the reports, 75 companies including LIC, NSE and Adani Wilmar are making plans to launch their respective IPOs in 2022. Meanwhile, 2021 saw 63 companies hitting the D-street. 

Good to know

What is a unicorn?

Unicorn in finance is a term that describes a privately-owned startup with a valuation of over $1 billion (about ₹7500 crore). The term was introduced by venture capital investor Aileen Lee in 2013. The valuation of any startup is primarily based on growth potential and actual development. Some companies become first businesses of their kind in an industry due to which they are valued highly. Meanwhile, personal care brand Mamaearth became the first unicorn of 2022.

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