Groceries off Zomato’s menu

Nifty50: 17,355 ▼-13 (-0.0%)
Sensex: 58,177 ▼-127 (-0.2%)

After a shaky start, markets recovered the lost ground in the second half of the trading session. Nifty50 breadth was positive with 30 stocks closing in green. 

Among the Nifty sectoral indices, Media (+1.3%) and Metal (+1.2%) were top gainers, while Bank (-0.5%) and PSU Bank (-0.4%) were the weakest today.      

Here are the top stories of the day.

Zomato discontinues grocery delivery

Recently listed and one of India’s biggest online food delivery platforms will stop delivering groceries from this week. Zomato is shutting down its grocery delivery business for the second time in two years. 

The company said that it had taken this decision due to infrastructure gaps in the highly competitive online grocery segment. It added that recently acquired Grofers will generate better outcomes for its shareholders than the in-house grocery division. Meanwhile, shares of the company were up 0.9% today.

Coal India jumps on price hike buzz

Shares of government-owned Coal India surged 3.9% after reports suggested that the company may raise prices of dry fuel by at least 10-11%. Rising costs and an impending wage revision necessitate a price hike, as per reports. 

Interestingly, the rise in coal prices has ripple effects across the economy, electricity generation being one of them. It is said that a 10% hike in coal prices may see a 20-30 paise per unit rise in electricity cost. The company had last hiked the prices of dry fuel in 2018. 

Jet plans to resume operations soon

The new owners of the airlines have said that Jet Airways will resume its domestic operations from Q1 2022. Further, short haul international operations could commence by Q3 or Q4 2022.The loss-making and debt-ridden airline has been grounded since April 2019. 

The company has reportedly hired 150 employees and will rope in 1,000 more employees in the current financial year. Meanwhile, the shares of Jet Airways hit the upper circuit of 5%.

Closing bell

While the markets had a weak beginning today, they gradually crawled up and closed nearly flat. Index heavy-weight Reliance Industries dragged Nifty50 down as it postponed the launch of its new phone. Meanwhile, IT and metal stocks provided support to the index. The recovery in the markets today was noteworthy and gives an indication that bulls still hold the fort. 

Good to know

What is a circuit limit?
Circuit limit refers to a price band wherein lower limit is called a lower circuit and an upper limit is called an upper circuit. These are the minimum and maximum price levels, at which a stock can trade on a given trading day. The typical thresholds for circuits are 2%, 5%, 10% and 20% in either direction. These circuits have been put in place to help investors make sense of the rapidly developing situation and reduce volatility. 

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