Nifty50: 16,245▼ 252 (-1.5%)
Sensex: 54,333▼ 768 (-1.4%)
- The markets opened with a gap-down and recovered to fill the gap before sliding downwards in the second half of trade.
- In all, 40 stocks of the Nifty50 pack closed in the red.
- FIIs have been net sellers to the tune of nearly ₹11,000 crore in the last two trading sessions.
Among the Nifty sectoral indices, Auto (-3.5%) and Metal (-3.2%) were the top losers, while IT (+0.1%) was the sole gainer.
| Top gainers | Today's change |
| Dr Reddy | ▲ 2.8% |
| ITC | ▲ 2.5% |
| Tech M | ▲ 1.9% |
| Top losers | Today's change |
| Titan | ▼ 5.2% |
| Maruti | ▼ 4.7% |
| Asian Paint | ▼ 4.4% |
For more updates on F&O, click here.
Here are the top stories of the day.
Airlines face turbulence as jet fuel prices soar
Indian airlines may find it difficult to pass on the rising jet fuel costs to price-sensitive passengers at a time when demand is just recovering, according to industry experts. Jet fuel, which is derived from crude oil, accounts for about 30-40% of the operating costs for airlines.
According to ICRA, the domestic aviation industry might report a net loss of around ₹25,000 crore during FY22 amid a sharp rise in crude oil prices and a stunted recovery due to the recent wave of the pandemic. Airlines could report steep losses for the March quarter if jet fuel prices continue to escalate.
Semiconductor woes to continue for auto industry
The ongoing Russia-Ukraine conflict and sanctions on Russia are likely to disrupt supply chains for the auto industry. Russia is one of the largest producers of palladium, which is an essential metal used in semiconductors. Meanwhile, Ukraine is one of the biggest producers and exporters of neon gas, which is used in semiconductor manufacturing.
This can further impact production of automobiles in India, especially when the auto industry, which was already plagued by the chip shortage, was hoping for production to pick up. The Nifty Auto index is down nearly 18% from its 52-week high of ₹12,139 it touched on 17 November 2021.
Defence stocks see action on possible defence push
The shares of defence companies rose sharply in early trade on the expectation that the escalating crisis in Ukraine could push the country to beef up defence spending in the coming years. India is considered to be in a geopolitical hotspot due to its border tensions with China and Pakistan.
The government is also pushing indigenous production of military equipment. It had recently directed armed forces to review all capital acquisitions in progress and reduce or stop imports wherever possible. Market experts believe this could help home-grown defence manufacturers see a rise in orders. Meanwhile, both BEL and HAL erased gains amid broader market weakness.
IPO Corner
According to reports, around 10.8 million policyholders of LIC have linked their policies with their PAN and have a demat account. LIC has identified 50 million unique individuals who hold about 282 million policies. The company has reserved 10% of the shares in its upcoming IPO for policyholders. To know more about the LIC IPO click here.
Good to know
What is the PEG Ratio?
The price-to-earnings-to-growth (PEG) ratio compares a stock’s price to its earnings (EPS) and its rate of growth. The PEG ratio is calculated by dividing the P/E ratio by the earnings growth rate. It helps to determine if the stock is undervalued or overvalued. For instance, if a stock has a P/E of 10 and the company projects its earnings to grow at 10%, the PEG works out to 1. A PEG of more than 1 can indicate that the market expects more growth than fundamental estimates predict, while a PEG of less than 1 can indicate that the markets have underestimated stock’s growth prospects.
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