Zee Entertainment in red , Oil slips slightly & more

Nifty50: 18,321 ▲35 (+0.2%)
Sensex: 61,872 ▲98 (+0.1%)

Namaste, friends!

We've all had a good laugh at those wacky AI-generated images circulating online. From beefed-up Harry Potter characters to countries reimagined as supervillains, harmless AI mischief has brought us plenty of chuckles. But things took a rather sinister turn recently when an AI-generated image actually managed to rattle the US markets. The picture in question, depicting an explosion near the Pentagon, went viral on social media causing the S&P 500 to dip by about 0.3% to a session low. Of course, the index quickly recovered once the image was debunked. Still, who knew AI could have such an impact on the market?

Our domestic markets, thankfully, didn't have any AI meddling in their fortunes today (fingers crossed🤞). Let’s take a closer look.

• Markets rebounded from intraday lows to close above 18,300 on late buying
• In all, 30 of the Nifty50 stocks closed in the green
• Rupee falls 7 paise to close at 82.75 against US dollar

Among the Nifty sectoral indices, Realty (+1.1%) and FMCG (+0.6%) were the top gainers, while Oil & Gas (-0.1%) and Media (-0.06%) were the top losers.

What’s trending

⭐ Zee Entertainment reports loss in Q4

Media company Zee Entertainment (-1.1%) reported a consolidated net loss of ₹196.03 crore in Q4FY23. In comparison, it reported a profit of ₹181 crore in the corresponding period last year. Its total income stood at ₹2,126.3 crore, down 9.8% YoY from ₹2,359.7 last year.

⭐ Piramal Pharma posts a profit

Shares of Piramal Pharma rose 13% intraday as the company reported a profit for Q4FY23 following three successive loss-making quarters. However, the profit for the quarter was down 75% YoY at ₹50.1 crore, compared to ₹204 crore in the comparable quarter last year. Meanwhile, its revenue increased marginally by 1.5% YoY to ₹2,163.5 crore.

⭐ Page Industries' net profit slumps

Maker of the Jockey innerwear brand, Page Industries (-0.3%), reported a Q4 net profit of ₹78.4 crore, down 58.9% compared to ₹190.5 crore in the same quarter last year. Its revenues stood at ₹969.1 core, down 12.8% YoY compared to ₹1,111.1 crore last year. The company attributed the weak performance to the challenging economic climate and a general decrease in consumption.

⭐ Oil slips slightly amid uncertainty

Oil prices fell in early Asian trading today, weighed down by uncertainty over the US debt ceiling and the prospect of further OPEC+ production cuts. Brent crude futures fell 0.1%, to $78.31 a barrel while U.S. West Texas Intermediate crude fell 0.2%, to $74.18.

In Focus

ITC shares zoom upward

Shares of ITC were one of the top gainers from the Nifty50 universe today, and hit an all-time high. The cigarette-to-FMCG company’s stock has been on an upward trajectory, rising 5% this week and 33% in 2023. 

So, what are the reasons behind this rally? Let’s take a look. 

Shooting up  

Post the pandemic, ITC’s cigarette business has been on a stellar recovery path. With all restrictions on mobility being lifted, cigarette volumes have been shooting up. This coupled with action against illegal cigarette trade and stability in taxes on cigarettes has helped ITC gain market share, according to analysts. In the March quarter, the net cigarette revenue rose 13.7% year-on-year. It’s important to note that the cigarette segment is a high-margin business.    

Consumption drive 

ITC’s FMCG business has also been witnessing robust growth. In Q4FY23, its FMCG segment reported 19.4% year-on-year growth driven by staples, biscuits, snacks, noodles, dairy, beverages and soaps. The company’s FMCG margins or profitability also expanded on the back of premiumisation and judicious price actions. 

On a trip

As travel picks up pace, ITC’s hotel business too is revving up. The robust growth in the hotel business was driven by weddings, leisure and MICE (meetings, incentives, conferences and exhibitions) segments. Driven by strong demand, the revenue per available room was above the pre-pandemic levels in the March quarter. 

While three of ITC’s business segments are firing on all cylinders, high raw material costs and subdued performance of paperboard and agri businesses are a concern.

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