Nifty50: 17,858 ▼ 37 (-0.2%)
Sensex: 59,958 ▼ 147 (-0.2%)
Hello!
Still caught up in Mumbai's Vada Pav Vs Delhi's Momos fight?
Here is a possible end to the debate on which Indian city has the yummiest food and NO, its not Delhi or Mumbai.
Make way for the city of joy and apparently the best food- Kolkata!
Yes, Bengal's capital is on the list of the world's best food destinations. In fact, it is the only Indian city to have found a place in the coveted league which includes places like Tamaki Makaurau (New Zealand), Asheville (North Carolina), Albuquerque (New Mexico), Cambridge (England) and Sardinia (Italy) among others.
Feeling hungry now? Let us present to you a lip-smacking platter of market updates, served hot and fresh!
- Benchmark indices ended lower for the third consecutive day.
- The market breadth was evenly split with 25 stocks declining.
- India’s retail inflation eased to 5.7% in December from 5.8% in November.
Among the Nifty sectoral indices, Media (+0.8%) and IT (+0.4%) were the top gainers, while Oil & Gas (-1.0%) and Bank (-0.3%) were the top losers.
| Top gainers | Today's change |
| SBI Life | 1,316 ▲ 24 (+1.9%) |
| UltraTech | 7,155 ▲ 133 (+1.8%) |
| HCL Tech | 1,072 ▲ 17 (+1.6%) |
| Top losers | Today's change |
| Divi's Lab | 3,308 ▼ 102 (-3.0%) |
| RIL | 2,475 ▼ 51 (-2.0%) |
| BPCL | 345 ▼ 6 (-1.9%) |
What’s trending
⭐ Infosys beats street estimates
The IT giant’s (+0.8%) net profit grew 13% on a year-on-year basis to ₹6,586 crore. The revenue also rose by 20% to ₹38,318 crore. Both these numbers were higher than the street estimates.
⭐ Cyient rises on robust Q3
Shares of the technology company (+4.7%) surged after it reported a net profit of ₹163 crore, up 23.6% year-on-year. The sharp growth in the profit was aided by a 36% rise in the revenue to ₹1,618 crore.
⭐ TCS’ growth could slow down
Revenue growth at India’s second largest company (by market cap) could slow down in the fourth quarter of FY23, said a ratings agency. It estimates that the economic downturn in the US and Europe could impact TCS’ (+0.2%) top line.
⭐ PB Fintech gets RBI nod
PolicyBazaar’s parent company (-0.04%) received an in-principle licence from the Indian central bank for account aggregator business. This means PB Fintech can facilitate the sharing of data user data (on consent) between financial institutions.
⭐ Paytm shares tumble
Shares of the fintech player (-6.1%) plunged after it emerged that large block deals had taken place. According to reports, Alibaba’s Group affiliate Ant Financial could have sold 2 crore shares of Paytm.
In Focus
Sugar stocks in a sweet spot
After a strong 2022, sugar prices are up around 4% this week. The political unrest in Brazil, which is the biggest producer of sugar globally, is one of the key reasons for the rally.
Rising sugar prices could be beneficial for Indian sugar mills, putting them in a sweet spot.
In the December quarter, the shares of major sugar mills like Dwarikesh, Balrampur Chini, Dharampur and Bajaj Hindustan had rallied in the range of 9% and 65% on the back of the ethanol boost. And there are multiple factors which indicate that sugar stocks could further sweeten for investors. These include:
Output boom
India’s sugar production rose 5.1% year-on-year to 8.2 million tonnes till December 2022 in the current sugar season (October 2022 and September 2023), according to an industry body. This is despite the delay caused by extended monsoon.
Holding strong
But, the momentum in production is supported by strong demand. This is why sugar prices are also holding up in India. Experts observed that over the past 12 months, sugar mills have earned a revenue (realistion) of ₹35 to ₹37 per kg.
More exports
Trouble in Brazil means more overseas demand for Indian sugar, so exports are rising. The government has also allowed sugar mills to export up to 6 million tonnes of sugar till May 2023. Experts say mills have already entered into contracts for 4.5 million tonnes of exports due to strong sugar prices.
Keeping a lid
Meanwhile, the price of raw material (sugarcane) is expected to remain steady. The Uttar Pradesh government has kept the State Advisory Price unchanged at ₹3,400 per tonne. ICDYK, Uttar Pradesh is the largest sugarcane producing state in India.
A perfect blend
The Indian government has also hiked the ethanol prices between 3% and 6%. And the government’s push to blend 20% ethanol with petrol has led to strong demand for ethanol from the oil marketing companies (OMCs).
So, a combination of strong demand, production and higher realisation could make sugar stocks a sweet deal for investors.
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Good to know
What is market breadth?
Market breadth refers to the number of stocks that are rising in comparison to those that are falling on indices such as Nifty50 or Sensex. It reflects the overall health of an index and its sentiments. For instance, if the majority of the stocks are advancing, it means that the sentiment is strong and indicates broader participation. On the other hand, if most stocks are declining, it means that bearish momentum is gaining ground.
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