Nifty50: 18,117 ▲ 64 (+0.3%)
Sensex: 60,950 ▲ 113 (+0.1%)
Hey there, people!
There have been times when we go overboard in trying to do something really simple. But it won’t compare to what this wild elephant did. He knocked down a fully grown tree, just for… wait for it… scratching his back!
- After being in the negative for most of the day, benchmark indices rebounded in the last hour to close higher.
- In all, 28 of the Nifty50 stocks closed in the green.
- The rupee closed at 82.44 on Friday against the dollar as compared to the previous close of 82.88.
Among the Nifty sectoral indices, Metal (+4.2%) and Media (+1.0%) saw maximum gains, while Pharma (-1.0%) and IT (-0.3%) were the top losers.
| Top gainers | Today's change |
| Adani Enterprises | 3,825 ▲ 235 (+6.5%) |
| Hindalco | 430 ▲ 19 (+4.8%) |
| Bajaj Finserv | 1,800 ▲ 77 (+4.4%) |
| Top losers | Today's change |
| Hero MotoCorp | 2,598 ▼ 48 (-1.8%) |
| Dr Reddy | 4,520 ▼ 69 (-1.5%) |
| Cipla | 1,146 ▼ 17 (-1.4%) |
What’s trending
⭐ Adani Enterprises’ profit doubles
ADANIENT (NSE): 3,825 ▲ 235 (+6.5%)
Adani Enterprises, the flagship company of the Adani Group, posted an over 117% increase in its net profit at ₹461 crore. Meanwhile, its revenue nearly tripled to ₹38,175 crore. The jump was due to the strong performance of the integrated resource management and airport businesses. In Q2, Adani Airports handled 16.3 million passengers at 90% of pre-Covid level and 2 lakh metric tonnes of cargo, while Adani Connex operationalised its first data centre facility at Chennai.
⭐ Cipla reports strong numbers
CIPLA (NSE): 1,146 ▼ 17 (-1.4%)
Pharma major Cipla reported a 11% year-on-year (YoY) rise in its net profit at ₹788 crore, while its total revenue from operations rose nearly 6% YoY to ₹5,828 crore. Its consolidated margins came in at 22%. Revenue from the pharmaceuticals segment improved to ₹5,690 crore in Q2 as compared to ₹5,413 crore in the corresponding period last year. Meanwhile, sales from new ventures surged by 100% YoY to ₹278 crore.
⭐ SRF plans capital expansion
SRF (NSE): 2,485 ▼ 69 (-2.7%)
Specialty chemicals maker SRF has announced a capex plan of ₹604 crore. The company will set up four new plants in the agrochemical space and will increase the existing capacity of its Dahej plant. The expansion is likely to be completed in the next 10-12 months. In the September quarter, the company reported a 31% YoY rise in its consolidated revenue at ₹3,728 crore, while its net profit grew by 26% to ₹481 crore.
⭐ Cochin Shipyard gets new order
COCHINSHIP (NSE): 604 ▲ 13 (+2.3%)
PSU shipbuilder Cochin Shipyard has bagged a new order from a European client to construct specialised vessels. The project is worth about ₹1,000 crore and will be executed in 35 months. The order has an option to build four additional vessels that can be exercised by the client within one year. As per the company, these specialised vessels are being contracted for the first time in the country.
In Focus
Oil marketers reel, as fuel prices stagnate
Oil marketing companies (OMCs) have reported heavy losses in the first two quarters of FY23. HPCL reported a net loss of ₹2,475 crore, while IOC’s loss was at ₹272 crore during the September quarter. BPCL’s results are awaited. Meanwhile, in the April-June quarter, these fuel retailers suffered a net loss of over ₹19,000 crore. Why is this happening ? Let’s explore.
Fuel retailers have incurred losses in the past two quarters mainly due to under-recoveries. In other words, these firms sold petrol, diesel and cooking gas at rates below their purchasing cost to help the government to contain inflation.
After the onset of the Russia-Ukraine conflict, crude oil prices shot up substantially in the international markets. However, the domestic prices of fuel have remained stagnant for nearly 165 days. The last price revision was done on 22 May this year when excise duty was cut by the government.
As per the latest commentary from the oil ministry, fuel retailers are still losing ₹4 per litre on diesel sales, while making some profits on petrol sales in the last few months. According to another industry report, the three state-owned OMCs have lost nearly $7 billion in sales due to a freeze in retail fuel prices.
In October 2022, the Union Cabinet approved a one-time grant of ₹22,000 crore to offset the losses incurred by OMCs in selling cooking gas below cost over a two-year period beginning from June 2020. However, the grant was not enough to cover the entire losses occurring across different categories of fuels.
As a result of this under-recoveries, profitability at OMCs has taken a hit. No wonder the stock of these companies are trading near their 52-week lows.
IPO Corner
IPO of snacks and sweets maker Bikaji Foods was fully subscribed on Day 2 with the retail subscription at 2.33 times. Meanwhile, the IPO of hospital chain-operator Global Health received a healthy response with overall subscription of 0.49 times on Day 2. Lastly, the IPO of NBFC Fusion Micro Finance was subscribed 2.95 times on the last day.
Good to know
What is the gross refining margin?
Gross refining margin (GRM) is the difference between the total value of the petroleum products produced by an oil refinery and the price of the raw material. Usually, it is calculated on a per-barrel basis. These values are determined based on inventory, demand, geopolitical and other factors. For oil companies, higher the GRM, higher the profitability.
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