Inching up

Nifty50: 17,151 ▲ 44 (+0.2%)
Sensex: 58,214 ▲ 139 (+0.2%)

Dear reader, 

It's the city of dreams and the moolah.

India’s financial capital Mumbai has emerged as the home to the maximum number of billionaires in the country. According to the Hurun Rich List 2023, 66 of India's 187 arabpatis reside in Mumbai. Delhi and Bengaluru follow with 39 and 21 billionaires, respectively.
These three Indian cities feature among the top 25 global cities producing the most number of Richie Rich.
It was a ka-ching time for investors and traders as well for the second day in a row. Here’s why.

• The markets ended higher in a volatile session.
• Of the Nifty50 stocks, 33 advanced.
• The street expects the US Fed to hike rates by 0.25% today.

Among the Nifty sectoral indices, Pharma (+1.0%) and PSU Bank (+0.8%) were the top gainers, while Media (-0.3%) and Realty (-0.1%) were the top losers.

What’s trending

⭐ Hindustan Zinc shines 

Shares of the metal and mining company rose after it (+2.2%) announced its fourth interim dividend of ₹26 per share. The record date is 29 March 2023. So far in FY23, the company has doled out dividend of ₹75.5 per share.   

⭐ IFC buys a stake in JK Tyre

International Finance Corporation (IFC) acquired 5.6% stake in JK Tyre (+3.9%) for ₹240 crore. The management of JK Tyre said that the funds will be partially used to expand the manufacturing capacities. It aims to increase the production of energy-efficient radial tyres by 10% to 35 million tyres by 2025. 

⭐ Ashiana Housing shares surge

Shares of the real estate developer (+6.2%) surged after it said it has crossed its FY23 annual booking guidance of ₹1,100 crore. So far, in this fiscal year, the value of the company’s total booking stands at ₹1,278 crore. Following the announcement, share price soared over 18% intraday.  

⭐ Gold prices remain range bound 

The prices of yellow metal were range bound on Wednesday ahead of the US Fed rate hike decision later today. Gold prices have rallied around 5% this month amid rising global economic uncertainties.

In Focus

Why are IT stocks falling?

Shares of major Indian tech companies – TCS, Wipro and Infosys – have fallen in the range of 5% to 7% this month. The unravelling of the US banking crisis and the fears of a global economic slowdown have weighed on the IT stocks. 

Let’s delve deeper into why IT stocks are wavering. 

The ripple effect 

Analysts believe that the US banking crisis could impact the revenue of IT companies. This is because around 50% of the Indian IT companies’ revenue comes from the North American region including the US. In the wake of the US banking crisis, customers of IT companies, especially from the financial sector, could reduce their technology spendings. 

And as the banking crisis fans the fears of a global economic slowdown, the contagion could spread to other sectors like retail. This means that customers across sectors could spend less money on technology. 

Impacting deals

The global economic uncertainty could lead to delay in the decision making process for financial services players. Alongside, their current focus would be on strengthening the balance sheet. All these factors could have an impact on the new deal signings in upcoming quarters for IT companies. 

So, all eyes will be on how the US banking crisis plays out further and how Indian tech companies weather it.

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Phrase of the day

Going Long

When you buy a stock, futures or an option contract with the hope that its price will rise, it is called going ‘long’.  When should you go long, find out from this chapter What does going Long mean? 

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