Markets seesaw before ending flat

Nifty50: 18,122 ▼ 9.8 (-0.05%)
Sensex: 60,910 ▼ 17 (-0.02%)

Hello

Riding on a seesaw could be one of our fondest childhood memories but when investors find themselves in the middle of a seesawing market, it is anything but pleasant. Read on to understand what we are talking about and what unfolded in the markets today.

• Indices snap a 2-day rally, end flat.
• 31 companies of NIFTY50 pack decline.
• Traders seem to be non-committal amid mixed global cues.

Among the Nifty sectoral indices, Oil & Gas (+1.2%) and Auto (+0.6%) were the top gainers while Pharma (-0.5%) and Metal (-0.2%) were the biggest losers.

What’s trending

⭐ Coal India to meet production target

COALINDIA (NSE): 222 ▲ 1.6 (+0.7%)

The management of the PSU is confident that it will achieve its production target of 700 million tonnes in the current financial year. If it achieves this target it will post a 12.4% year-on-year growth. However, interestingly, the miner has already shown a growth of nearly 17% in the first eight months of FY23. Further, the company expects to grow at a faster trajectory in the Q4. The numbers and the company’s comment imply that it could beat its own production target. 

⭐ Consumer electronics makers aim strong growth

VOLTAS (NSE): 797 ▼ 0.7 (-0.09%), HAVELLS (NSE): 1,108 ▼ 1 (-0.09%)

India’s consumer electronics players expect to continue on a double-digit growth track in 2023. The optimism is backed by three driving forces viz. higher demand for premium products, roll out of new-age smart products and capacity expansion by several companies. The industry is also putting efforts to reduce dependency on imported components, especially after the pandemic-led supply crunch. In the near term, the AC makers are bullish about a good summer demand, starting from February-end to June-end.

⭐ RVNL share gains on contract win

RVNL (NSE): 66.7 ▲ 3.1 (+4.9%)

Shares of Rail Vikas Nigam were locked in a 5% upper circuit as it bagged a contract to oversee the execution of a harbor project in Maldives. The total cost of the project stands at ₹1,544 crore. It is a strategic project that will be executed within 24 months. 

⭐ Tesla runs out of charge

Electric car maker Tesla, is set to end the year on a low note. Its shares are down nearly 44% so far this month. The selling pressure mounted after media reports suggested that the EV maker plans to temporarily halt production at its China factory. Further, reports also indicate that to pep-up demand in the US, the company is offering a huge discount on cars.

In Focus

PSU Banks outperform in 2022!

It's that time of the year again! This is when we look back on events that shaped the market direction. The year 2022 was in the news for a series of interest rate hikes and a major geopolitical conflict. But, despite the uncertainties, the Nifty50 index has risen 4.4% so far, this year. In contrast, the PSU Bank index has jumped 67%. Here is a deep dive on the year’s top performing sector. 

The year 2022 saw a breathtaking rally in the shares of state-owned banks or the PSU banks with State Bank of India and Bank of Baroda, rising 30% and 121%, respectively. 

Steady improvement in asset quality was one of the primary reasons for the upswing in performance of PSU banks. A steady write-off of bad loans has helped to improve the profits of these banks. Infact, the gross non-performing assets (NPAs) in FY22 came down to 7.4% from 14.6% in FY18. 

Furthermore, public sector banks account for 62% of the deposits of scheduled commercial banks and corner 58% market share in the loans segment. Accelerated demand for credit, which rose to 18% in the September quarter, was another key trigger that supported the index rally.

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Good to know

What are sectoral indices?

Every company trading in a stock market belongs to a specific economic sector. When companies are grouped together on the basis of their products or services to track overall performance, such groups are called sectoral indices. They provide summary and comparative market data for a specific sector or industry. Nifty Auto, Nifty IT, Bank Nifty, etc. are examples of sectoral indices. They enable investors to monitor a stock's performance against its sector as well as analyse the performance of a specific sector versus the economy as a whole.

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