Showtime for multiplexes 🎦

Nifty50: 16,167 ▼ 72 (-0.4%)
Sensex: 54,088 ▼ 276 (-0.5%)

Is this the real life?

Is this just fantasy?

Caught in a landslide,

No escape from reality

We hear you if you are playing Queen on loop. We are too. Benchmark indices are down 5% this month already. And if markets look too depressing to you, why not escape reality? Catch a movie instead!

Multiplexes around the country have opened up and are doing brisk business. New films have hit theatres. And more (Avatar: The Way of Water, anyone?) are on their way. So what's in store for the multiplex chains? We'll give you the big picture.

But first, a quick look at the markets.

• Markets witnessed a volatile session with a mild recovery toward the end. 
• After correcting nearly 11% from the recent peak in April, the markets are in an oversold zone. 
• The inflation numbers from India and the US (which eased for the first time in 8 months) will likely determine the course of the markets in the near term. 

Among the Nifty sectoral indices, Realty (+0.7%) and Bank (+0.6%) saw gains, while IT (-1.2%) and Auto (-0.9%) were the top losers.

Did you know?

You can now place Good-Till-Triggered (GTT) orders on the new Upstox app. To know more about GTT orders, click here.

For more updates on F&O, click here.

What’s trending

⭐ Nerolac paints it red 🖌️
Kansai Nerolac lost some of its ‘raunak’ today. The stock slipped 6% intraday and hit a 52-week low after the company’s net profit plunged 81% year-on-year (YoY). Low demand for decorative paints and higher cost of raw materials led to the fall in profits. Meanwhile, revenue rose 4% YoY aided by the price hikes taken in the previous quarter. 

⭐Bitter pill 💊

Pharma companies seem to be in the spotlight. Aurobindo Pharma's (-3.1%) stock hit its lowest point in the last one year, after the drug regulator USFDA issued six observations on its manufacturing unit in Hyderabad. An observation is a potential regulatory violation found during a regular inspection. Meanwhile, Sun Pharma (-0.6%) reported early on Tuesday that it had received 10 observations for its Halol unit. 

⭐Luxury cars in overdrive 🚗
After being in low gear during the pandemic, luxury car sales are revving up, and how! Mercedes-Benz expects 2022 to be its best year in terms of sales due to high disposable incomes and pent-up demand for luxury cars. It has pending orders in excess of ₹3,500 crore, with over 5,000 cars yet to be delivered. Meanwhile, Audi has waiting periods of up to six months, and BMW recorded one of its best quarters in January-March this year. 

⭐Adieu, iPod 📱 

Long long ago, music was not available on streaming apps. You bought it, downloaded it and stored it in a portable music player, like the Apple iPod if you could afford it. That iconic Apple iPod is now dead. Twenty years after its launch revolutionised the portable music market, Apple is discontinuing the iPod. You can still get your hands on the 7th generation Touch model, though, until stocks last.

In Focus

Lights, camera, expansion!

OTT platforms had turned kings of content back in 2020. Silver screens were squeezed into our smart devices. But alas, who could resist that smell of popcorn? So, after a two-year break, crowds have returned to theatres, and multiplexes are packed to the gills. To cash in on this filmy frenzy, multiplex players PVR and INOX are planning a record expansion in FY23.

PVR plans to add 125 screens this year, which could be its highest ever annually. Meanwhile, INOX is planning to add 77 new screens this year, compared to 52 it added in the pre-Covid year FY20. According to PVR's management, such expansion is being planned not only due to rising demand, but also because of a stellar line-up of movies expected over the next two quarters.

What’s more, the two multiplex chains, which are planning to merge, have been able to cut down their losses. PVR's Q4 net losses narrowed to ₹105 crore from ₹289 crore in the last year. INOX reported a Q4 net loss of ₹28 crore, down from ₹93 crore in the previous year.

According to INOX, the losses shrank as March was the best month for box office collections to date. The positive sentiment has continued. Doctor Strange's latest romp across the multiverse garnered almost ₹100 crore in the first weekend itself. And while it’s mostly the South Indian film industry and Hollywood that are picking up the slack, the Bollywood engine is yet to take off. 

Yes that's right. Picture abhi baaki hai. 

IPO corner

Investors are delivering their IPO applications for logistics services player Delhivery. On day 1, the ₹5,235 crore IPO was subscribed more than 20%. The ₹165 crore IPO of Venus Pipes & Tubes also received strong response with the public issue being subscribed more than 2 times. 

Meanwhile, the public issue of retail wealth management services company Prudent Corporate was subscribed more than 50% on day 2. Click here to apply for these IPOs on Upstox.

Good to know

What is a price band?

When a company decides to go for an IPO, it sets upper and lower price limits for its shares. This is called a price band. Investors can apply for the IPO at a price within the price band. To increase chances of allotment, many investors choose to place their bids at the higher end of the price band.

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