Market stabilises after slump

Nifty50: 17,624 ▲ 5 (+0.03%)
Sensex: 59,632 ▲ 64 (+0.1%)

Dear readers,

Shoplifting can be a real headache for store owners, but one Birmingham pharmacy manager found a creative solution to deter sticky-fingered thieves from targeting his store. Frustrated by the lack of police action, Whasuf Farooq decided to publicly humiliate alleged shoplifters by creating a ‘wall of shame’.

Featuring images of the accused with humorous nicknames like 'The Lynx Thief' and 'Nivea Man,' the wall has attracted the attention of locals and social media users worldwide. Mr Farooq insists his plan is working, with thieves even returning to pay for what they stole! Now let's take a look at the markets, which closed flat today.

• Market ends flat amid mixed global cues.
• Out of the Nifty50 stocks, 26 stocks closed in green.
• Crude oil prices at three-week low as US dollar strengthens.

Among the Nifty sectoral indices, Bank (+0.2%) and Auto (+0.2%) were the top gainers, while Pharma (-1.1%) and Realty (-0.4%) were the top losers.

What’s trending

⭐ HCL Tech’s mixed-bag results

The IT major (-0.1%) announced its Q4FY23 results today. While the company’s revenues grew 17.7%YoY to ₹26,606 crore, its net income grew 10.8% YoY to ₹3,983 crore. However, despite the growth, revenues missed the street estimate of ₹ 26,801 crore. The company also declared an interim dividend of ₹18 per equity share.

⭐ Fortis to acquire Medeor Hospital

The healthcare services provider (-0.6%) is all set to acquire Medeor Hospital in Gurugram for ₹225 crore. The hospital has a potential bed capacity of 350 beds and can be operational in nine months. As per management, the company is evaluating various acquisition opportunities to expand its presence in existing markets. 

⭐ Mastek's Q4 results spark stock jump

The smallcap IT company today saw its stock surge over 11% despite reporting a fall in net profit. The company's Q4 net profit stood at ₹72 crore, a decline of 17% YoY. Meanwhile, its revenue from operations jumped 21% YoY to ₹709 crore.    

⭐ Ion Exchange announces stock split 

The board of Ion Exchange (+1.2%) has approved a 1:10 ratio stock split. This means that existing investors will receive 10 additional shares for each share they hold. Meanwhile, the company’s share price will be reduced. Along with this, the company also announced a new acquisition of Portugal-based water treatment firm, MAPRIL for ₹24 crore. The deal could strengthen Ion Exchange's foothold in the European market.

In Focus

Demand for home loans falling

As per a new report, home loan disbursals and demand seems to be dipping in the last few quarters. Home loan disbursals decreased 6% in Q3FY23, while inquiries fell by 1%. Loans to the housing sector have shown strong traction after the pandemic. However, the trend seems to be fading. What are the key reasons behind this? Let's find out.

Change in consumer sentiment  

As per experts, consumers have adopted a conservative approach towards high-ticket loans in the prevailing environment of rising interest rates and high inflation. Since May 2022, the RBI has hiked its key policy rates by 250 basis points to 6.5%, which banks have passed on to their borrowers, impacting consumer sentiments.

What are the banks doing?

Amidst a fall in demand for home loans, some banks are offering special home loan rates, which are as low as 8.5% for new customers.The move comes after the central bank kept its key policy rates unchanged at its April meeting. These special rates are slightly lower than those for existing customers. 

Unsecured loans gain traction

Demand for home loans may be falling. At the same time, however, inquiry volumes for personal loans and credit cards have shot up by 50% and 77% respectively. Banks are also shifting focus towards unsecured loans as high ticket loans become unattractive. In FY23, unsecured loans grew 26% YoY as per RBI data. 

With the demand scenario changing drastically, it would be interesting to see the Q4 earnings of banks and NBFCs.

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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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