Nifty50: 17,511 ▼ 43 (-0.2%)
Sensex: 59,605 ▼ 139 (-0.2%)
Hello reader!
Is it Friday yet?
If you too are struggling to get through the week, this news might put you in a better mood.
Remember that 4 day work week trial in the UK? Well, it has received a big thumbs up from the majority of participating staff and companies. 56 out of 61 businesses have decided to stick with it going forward!
Guess who else wants this week to end soon? Traders and Investors. Let's tell you why.
- The markets ended in the red amid volatility.
- Of the Nifty50 universe, 26 stocks declined.
- Rate hike concerns continue to weigh on the markets.
Among the Nifty sectoral indices, PSU Bank (+0.5%) and Metal (+0.3%) were the top gainers, while Realty (-1.7%) and Media (-1.7%) were the top losers.
| Top gainers | Today's change |
| Hindalco | 437 ▲ 7.7 (+1.7%) |
| Coal India | 215 ▲ 3.4 (+1.6%) |
| Axis Bank | 846 ▲ 13 (+1.5%) |
| Top losers | Today's change |
| Asian Paints | 2,707 ▼ 88 (-3.1%) |
| LT | 2,154 ▼ 40 (-1.8%) |
| Titan | 2,392 ▼ 39 (-1.6%) |
What’s trending
⭐ Nifty Realty index freefall continues
Nifty Realty index was amongst the top losers today, plunging for the fifth straight session. The index is down over 11% so far in 2023, with heavyweights like DLF, Godrej Properties and Macrotech Developers declining between 9 to 26% this year.
Why? Investors are likely concerned about the possible impact of interest rate hikes on future consumer demand.
⭐ Mahindra CIE reports robust numbers
Mahindra CIE Automotive (+0.1%) has reported 35% YoY rise in consolidated revenue from operation to ₹2,247 crore for the quarter ended 31 December 2022. Meanwhile, auto component supplier’s profit after tax rose by 153% YoY to ₹195 crore, led by strong operating performance and exceptional gains. The company also announced a final dividend of ₹2.5 per share.
⭐ Sonata Software rises on new acquisition
The company (+6.0%) has signed an agreement to acquire 100% stake in Quant Systems. The move could help Sonata Software increase its business presence in the data analytics and cyber security segment. The company will pay $65 million upfront plus $95 million as achievement-based payment over the next two years
⭐ ZEEL shares tank over insolvency plea
Shares of Zee Entertainment (-3.4%) plunged after the National Company Law Tribunal (NCLT) admitted an insolvency plea filed by IndusInd Bank against the company. IndusInd Bank has claimed a default of ₹83.08 crore by the media and entertainment firm. Meanwhile, the company has filed an appeal with National Company Law Appellate Tribunal (NCLAT) seeking relief from the order.
In Focus
Power play
Earlier this week, the central government directed all power plants, which are using imported coal, to operate at full capacity from 16 March onwards. Let’s take a look at the impact of this government order and other factors which could turn the tide in favour of power companies.
The sun is shining
India’s power consumption rose 9.6% YoY to 343 billion units in the December quarter. This was led by sustained momentum in economic activities. The demand is expected to surge further with peak summer setting in. Temperatures are already soaring in many parts of the country and are expected to hit record highs this year.
Higher utilisation levels
Anticipating a rise in power demand, the government has asked imported coal-based power companies to operate at 100% capacity. This could help the power companies to optimise their capacities. Experts note that India’s coal-based plants’ load factor is currently underutilised. Only 60% of this capacity is being used.
Passing the costs
One of the reasons for underutilisation is that the imported coal-based plants haven’t been able to compete with the power generated through cheaper domestic coal. To resolve this issue, the government has allowed power producers to pass on the higher cost of imported coal to the power distribution companies. Also, the companies can sell unutilised power in the open market.
Easing prices
Additionally, coal prices have been declining due to the easing of the energy crisis in Europe. Higher inventories and slow recovery in demand for coal from China is also putting pressure on global prices. ICYDK, China is the largest consumer of coal.
So, with favourable policies and erratic weather, power companies could enjoy their moment in the sun.
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