Spooked

Nifty50: 17,522 ▼ 82 (-0.4%)
Sensex: 58,774 ▼ 310 (-0.5%)

Hey there, folks!

What is on your bucket list? Skydiving, travelling the world solo, or maybe making a million dollars  before 30? But surely not getting arrested right? Well, that was one thing on the bucket list of a 100-year-old Australian woman, and she ticked it off!

• After a strong opening, benchmark indices saw selling pressure in the last hour of trade and ended lower.
• In all, 34 of the Nifty50 stocks closed in the red.
• Markets were jittery ahead of the US inflation data to be released on Friday evening.

Among the Nifty sectoral indices, PSU Bank (+2.7%) and Realty (+1.4%) were the top gainers, while IT (-0.8%) and Metal (-0.5%) were the top losers.

What’s trending

⭐ Omaxe wins project to build sports complex

OMAXE (NSE): 101 ▲ 2.9 (+3.0%)

Realty company Omaxe has bagged a project from Delhi Development Authority (DDA) to make a sports complex and retail project in New Delhi. The project is worth ₹2,100 crore. Of this, ₹1,300-₹1,400 crore will be used on the sports complex and the rest on retail area.

⭐ PSP shares rise on order win

PSPPROJECT (NSE): 606 ▲ 19 (+3.3%)

Shares of civil construction company PSP Projects rose nearly 6% today after it announced winning a new contract. The new order is worth ₹247 crore and belongs to the precast and government segment. Following this order win, the total order book of the company stands at ₹1,344 crore for FY23, which is 76% of its FY22 revenue.

⭐ India restricts wheat flour exports

Indian government has decided to put restrictions on wheat flour exports because of an increase in wheat prices in the domestic market. Following the Russia-Ukraine conflict, the global wheat supply chain was disrupted leading to higher demand for Indian wheat. As a result, India’s wheat flour export registered a growth of 200% between April-July 2022.

⭐ China’s booster shot to revive its economy

In order to revive the country's slowing economy, China has announced a stimulus of 1 trillion yuan ($146 billion). According to the policy package, state policy banks can invest another 300 billion yuan in infrastructure projects, on top of the 300 billion yuan announced in June. Slow economic activity in the country has weakened growth, putting the government’s growth target of 5.5% beyond reach.

In Focus

Developers face ripple effect of rising interest rates

The housing demand in India has seen a robust growth in recent times. Buyers are eager to invest in the property market despite rising interest rates. Since May 2022, RBI has increased interest rates by 1.4%. The rising interest rate scenario could prove to be a major concern for property developers. Want to know how? Keep reading.

Some of the listed developers such as Godrej Properties and Prestige Estates saw an increase in their net debt during the first quarter of FY23. The debt of Godrej Properties increased by ₹493 crore, while Prestige Estates reported a ₹550 crore rise in debt. Multiple new launches along with a surge in new opportunities for developers via acquisition and joint development options has led to surge in debt.

Although the increase in debt level is not always a bad thing for the company. However, a consistent rise in interest rates, raises the borrowing cost for real estate firms. Consequently, a rise in debt levels above the company’s target range negatively impacts the profitability.

Management of both companies has said that debt is expected to rise further in the upcoming quarters as firms look for good business opportunities for development. Godrej Properties has a robust launch pipeline and aims to achieve sales booking of 10,000 crore in FY23. Bengaluru-based Prestige Estate also looks to garner pre-sales of over 12,000 crore in FY23.

IPO corner

The IPO of the airport services aggregator witnessed strong investor interest. On Day 2, the public issue was subscribed 6 times. While the retail portion was subscribed over 19 times, the quota for non-institutional investors was subscribed 8 times. The company raised ₹253 crore from anchor investors prior to the IPO.

Click here to apply for the IPO on Upstox.

Good to know

What are anchor investors?

Anchor investors are institutions that are allotted shares at a fixed price before the IPO opens to the public. Each investor is required to invest at least ₹10 crore and the funds are subject to a 30-day lock-in period. Investment by anchor investors ahead of the IPO creates a buzz among retail investors. It is generally seen as a confidence booster as institutions make well-researched investment decisions.

Click here to join us on Telegram for trading and investment-related videos, daily market updates, details on upcoming IPOs and more.