Markets sink further

Nifty50: 18,665▼ 105 (-0.5%)
Sensex: 62,979 ▼ 259 (-0.4%)

Namaste, friends!

As we usher in the weekend and take a break from our busy work schedules, the story of a dedicated gas-agency employee is going viral. The man braved heavy rains to deliver an LPG cylinder to a household in a Rajasthan village. His commitment to his job was appreciated even by the Union petroleum and natural gas minister. This story is a reminder for all of us to try to make a difference in our jobs no matter how insignificant it may seem. Meanwhile, the markets weren’t so inspiring today as they fell for the second straight day. More on that later.

• Markets ran out of steam, ending the week on a low
• In all, 40 of the Nifty50 stocks closed in the red
• Eurozone manufacturing activity fell to 43.6, down 1.2 points in June 2023

Among the Nifty sectoral indices, Pharma (+0.1%) was the lone gainer today, while Metal (-2.4%) and Media (-2.1%) were the top losers.

What’s trending

⭐ IT stocks stumble after Accenture report

Accenture said that despite 12.6% revenue growth in the March-May quarter, it has lowered its FY23 revenue growth guidance from 8-10% to 8-9%, owing to lower-than-expected small deal wins. Accenture follows a September to August financial year. Following this, shares of Indian IT firms including TCS, Infosys, Wipro and Tech Mahindra fell in the range of 0.3% to 1.2%. Accenture results are seen as a lead indicator for the performance of Indian IT firms which will declare their results in the first half of July.

⭐ Lupin shares gain after US drug launch 

Lupin shares rose 0.5% to ₹857 after the pharma major successfully launched itsthe Rufinamide Oral Suspension drug in the US. The drug is used to treat seizures in paediatric patients. As per IQVIA data from April 2023, the Rufinamide Oral Suspension has an estimated annual sales of $72 million in the US.

⭐ Man Infra bags new order

Man Infraconstruction shares hit their 52-week high of ₹119.1 intraday, after the company bagged a ₹680 crore order from Bharat Mumbai Container Terminal Private Limited (BMCTPL), to execute the Phase 2 infrastructure works at the Jawaharlal Nehru Port (JNPT) with a time frame of 2.5 years. The company has successfully executed Phase 1 infrastructure works for BMCTPL within 22 months. 

⭐ Crude falls, set for weekly loss  

International crude oil prices are trading lower, heading for a weekly decline. This comes after the Bank of England announced a higher-than-expected rate hike of 0.5%. Besides, central banks in Norway and Switzerland also hiked rates. Higher interest rates increase borrowing costs, leading to slower economic growth and cloud the oil demand outlook for the rest of the year.

In Focus

New-age tech firms make a comeback

New-age tech companies seem to have regained investor confidence of late. Stocks like Paytm, Zomato, PB Fintech and Delhivery have risen between 12% and 58% so far in 2023 after witnessing substantial fall. What are the key factors behind this turnaround? Let's dig in. 

Focus profitability  

Experts believe new-age tech firms have caught the fancy of investors as they have shifted their focus from growth at all cost to profitability. For instance, Paytm reported 61% YoY rise in its revenue to ₹7,990 crore in FY23 and was able to narrow its losses to ₹1,743 crore. Meanwhile, Zomato, PB Fintech and Delhivery also managed to reduce their losses during the same period. 

Other key factors

Besides improving quarterly numbers, these companies are focusing on strengthening their core businesses, cutting back on costs and moving slowly on new acquisitions and expansion plans. In addition, the expected drying up of funding for new companies and ideas would reduce the competitive intensity, which would be beneficial for the existing players.

As a result, these companies have emerged as bargain buys for investors after witnessing a huge sell-off last year upon listing. 

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