Nifty50: 18,014 ▲ 207 (+1.1%)
Sensex: 60,566 ▲ 721 (+1.2%)
Hello!
A day after the Christmas weekend, the last Monday of the year and a cold wave sweeping half of the country... from the onset, today looked like a complete deadbeat. But, the markets had other plans. It recovered and infused as much energy in the investors as a hot cuppa would in this chilly weather!
Many believe MIA Santa has finally found his way to the Indian markets and bulls have replaced the reindeers in his sleigh.
But is this cheer and joy here to stay? Fingers crossed!
For now, let's give you a lowdown on the markets before you call it a night.
- Sensex, Nifty notch strong gains after previous week’s devastation.
- 40 companies out of NIFTY50 end higher.
- Indian indices follow the lead of optimistic global peers.
Among the Nifty sectoral indices, PSU Bank (+7.2%) and Media (+2.8%) were the top gainers, while Pharma (-0.8%) was the sole loser.
| Top gainers | Today's change |
| SBI | 597 ▲ 23 (+4.0%) |
| IndusInd Bank | 1,194 ▲ 46 (+4.0%) |
| Hindalco | 442 ▲ 12 (2.9%) |
| Top losers | Today's change |
| Cipla | 1,097 ▼ 21 (-1.8%) |
| Divi's Lab | 3,435 ▼ 63 (-1.8%) |
| Dr Reddy | 4,255 ▼ 55 (-1.2%) |
What’s trending
⭐ Gateway zooms on new acquisition
GATEWAY (NSE): 65 ▲ 0.2 (+0.3%), INDIAGLYCO (NSE): 737 ▲ 26 (+3.7%)
Logistics firm Gateway Distriparks (GDL) completed the acquisition of Kashipur Infrastructure and Freight Terminal (KIFTPL) after paying ₹144.4 crore. GDL’s shares were up by 2.6% intraday post the announcement. The company acquired 99.9% shareholding of KIFTPL from its majority shareholders, including India Glycols, Apollo LogiSolutions and Kashipur Holdings. The acquisition of ICD Kashipur will add volume to the rail operation of Gateway Distriparks. The company will also add to its presence in the northern markets.
⭐ L&T’s big wins down South
LT (NSE): 2,088 ▲ 25 (+1.2%)
L&T Construction’s Water & Effluent Treatment Business has secured a new order from the Tumakuru Industrial Township. The company also bagged repeat orders from the Tamil Nadu Water Supply and Drainage Board (TWAD Board). L&T did not comment on the exact order size but said it is valued between ₹1,000 to ₹2,500 crore.
Meanwhile, in the first half of FY23, L&T’s total order book has grown by over 12% year-on-year to ₹3.7 lakh crore.
⭐ PE fund picks majority stake in Suven Pharma
SUVENPHAR (NSE): 473 ▼ 23 (-4.6%)
Global private equity firm Advent International will acquire a majority stake in Suven Pharmaceuticals. As per agreement, Advent International will acquire 50.1% stake from the promoters for ₹6,300 crore. It will also launch an open offer to acquire the additional stake of 26% from public shareholders. The PE fund has set a price of ₹495 per equity share for the open offer. This adds up to a total consideration of ₹3,276 crore.
Suven Pharma is involved in the contract development and manufacturing for the pharma sector.
⭐ Trending now: Index funds
Index funds seem to have caught investors’ fancy -the AUM (assets under management) of index funds increased 172% to ₹1.2 lakh crore (as on 30 November 2022). This is per data from industry body, AMFI (Association of Mutual Funds in India).
Meanwhile, the total AUM of the equity mutual fund has increased to ₹15.5 lakh crore - that is a growth of by 17% in the last 11 months.
(ICYDK) Index funds are passively managed mutual funds where the fund manager invests in all the stocks in a benchmark index like the Nifty50. The fund seeks to replicate the returns of its benchmark index.
In Focus
End Of Swipe Season for credit cards?
Consumer spending on credit cards declined 11% in November 2022. This is the first time since July 2022 that credit card spending declined on a monthly basis. Why is it significant? Let’s break this down for you.
What does the data say?
As per data released by the RBI, credit card spending declined by 11% sequentially to ₹1.15 lakh crore in November. This, because average spending by cardholders has reduced from ₹16,343 in October to ₹14,280 in November.
Why have credit card spends declined?
People are spending lesser because of two reasons -
- End of festive season
- They are cutting back on discretionary spending as inflation eats into savings.
On a positive note:
Despite spending fall, the industry added 1.3 million users in November as lenders became aggressive to secure new business after the pandemic. The total credit cards in circulation rose by 19.4% year-on-year to 80.6 million. The Net addition of the cards was led by SBI Card, HDFC Bank and Axis Bank.
Overall, as well, credit card spending has remained above the ₹1 lakh crore mark for the ninth consecutive month aided by a rise in e-commerce, travel and hospitality transactions.
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Good to know
What is discretionary spending?
Discretionary spending is spending on non-essentials that could be done away with or postponed by an individual, household or business. These expenses are not necessary for survival hence they are classified as 'wants' instead of 'needs'. For example, buying the latest version of a smartphone as soon as it comes out counts as discretionary spending. It may give you instant gratification but it is not a necessity. Discretionary items are price sensitive unlike necessary items, meaning when they become more expensive, individuals cut them off their budget fairly easily. Hence, during a difficult economic climate, we see a dip in discretionary spending.
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