Markets revv up

Nifty50: 16,132 ▲ 143 (+0.8%)
Sensex: 54,178 ▲ 427 (+0.8%)

Hola, people!

Despite clouds of inflation and interest rate hikes, markets continued to rise on Thursday. Just like a wedding baarat in Indore battled rains and danced towards the wedding venue under a tarpaulin sheet! 

• Markets extended the winning run for the second straight day, mirroring positive global cues.
• In all, 38 of the Nifty50 stocks closed in the green.
• Investors await the release of the minutes from the latest meeting of the European Central Bank to come out later in the day.

Among the Nifty sectoral indices, Metal (+3.7%) and PSU Bank (+3.4%) saw gains, while FMCG (-0.08%) was the sole loser.

What’s trending

⭐ Titan’s sales see huge jump ⌚

TITAN (NSE): 2,129 ▲ 116 (+5.7%)

Jewellery and watchmaker Titan in its quarterly update said its sales jumped by 205% year-on-year (YoY). While this is due mainly to the low-base effect, the firm also reported a CAGR of 20.5% between Q1FY20 and Q1FY23. While jewellery sales jumped 207% YoY, sales of watches and wearables surged 158% in Q1FY23. 

⭐ JSW Steel’s output rises ⚙️

JSWSTEEL (NSE): 576 ▲ 21 (+3.9%)

JSW Steel reported a 16% YoY jump in its consolidated crude steel production for the three months ended 30 June 2022. Its total output stood at 5.88 million tonnes, as compared to 5.07 million tonnes in Q1FY22. However, on a sequential basis, steel output declined by 2% due to a scheduled shutdown during the first quarter.

⭐ Nykaa forays into men’s fashion 🎽

NYKAA (NSE): 1,453 ▲ 51 (+3.6%) 

Shares of FSN E-Commerce Ventures, the parent of cosmetics-to-fashion retailer Nykaa, jumped 4% intraday. This comes after the company announced the launch of its first innerwear and athleisure brand for men, GLOOT. Interestingly, Gloot products are made from Lenzing Lyocell fibre, which ensures they have an 83% lower carbon footprint as compared to a generic comparable fibre.

⭐ TVS rides in with a premium bike 🏍️

TVSMOTOR (NSE): 827 ▲ 1.9 (+0.2%)

This one is for all the motorheads out there. TVS Motor has entered the premium lifestyle segment with the launch of the TVS Ronin. It's being touted as the country's first "modern-retro" motorcycle and is targeted to rival the upcoming Royal Enfield Hunter 350. Prices start from ₹1.49 lakh (ex-showroom).

⭐ Equitas reports strong Q1 numbers 💰

EQUITASBNK(NSE): 39 ▲ 0.5 (+1.4%)

Shares of Equitas Small Finance Bank jumped by over 9% intraday after the bank gave an update for the first quarter. The total disbursements by the bank increased by 156% to ₹3,238 crore. Meanwhile, CASA deposits, which is the cheapest source of funds for the banking industry, jumped by 55% to ₹10,548 crore.

In Focus

Real estate sales: Boom or aberration?

Inflation has been a massive challenge for various sectors like auto and FMCG. But the real estate sector hardly seems to have flinched. And that's despite the rising interest rates. Let’s take a closer look.

Macrotech Developers (or Lodha) has reported a 194% YoY jump in sales bookings in Q1FY23 to ₹2,814 crore. While the massive growth is over a low base, this is still its best-ever first quarter in terms of bookings. For Bengaluru-based Sobha, Q1FY23 was the best-ever quarter in terms of sales volumes of 1.36 million square feet. It recorded sales bookings worth ₹1,145 crore in the quarter, 68% higher year-on-year. 

Lodha says that demand remains robust for “high-credibility developers", despite headwinds like rising interest rates and inflation. Demand has remained strong despite a 9% rise in real estate prices this year. 

Lodha also added that India's housing sector is witnessing a "structural upcycle" over the medium to long term. This is being driven by good wage growth, increase in relevance of housing to families after Covid, and consolidation of supply with quality developers. 

However, Lodha's sales fell 19% on a quarter-on-quarter basis. The company reasoned that Q1 is a seasonally weak quarter due to holidays and the onset of monsoons. Meanwhile, Sobha reported a tepid sequential 3% improvement in its Q1 sales.  

Nevertheless, investors were impressed by their performance. Macrotech was up 1%, while Sobha closed 10% higher on Thursday. Now the question arises, whether this performance is sustainable, considering the rising interest rates. It's anybody’s guess at this point.

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