TGIF!

Nifty50: 16,411 ▼ 271 (-1.6%)
Sensex: 54,835 ▼ 866 (-1.5%)

Yo, sup!

How we wish we could open a portal to another timeline in the multiverse. Hopefully, there exists some parallel universe where we are making a killing in the markets. 

Sadly though, even Dr Strange doesn’t have the Time Stone. So all we can do is stay put and wait till the markets calm down. 

Thank God for the weekend. Monday is another day!

• Markets nosedived today, amid a global sell-off in reaction to the US Fed’s rate hike on 4 May.
• Of the Nifty50 stocks, 39 closed in the red.
• Meanwhile, the Bank of England cautioned that Britain risks slipping into a recession, with inflation above 10%. To tame raging prices, the Bank of England has raised interest rates to their highest level since 2009.

All of the Nifty sectoral indices closed on a negative note with Realty (-3.5%) and IT (-2.2%) witnessing heavy losses.

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

⭐On discount, Zomato’s shares! 🛵

Shares of the online food ordering company Zomato (+0.9%) have been hitting new lows on a regular basis. The stock has plummeted 65% from the lifetime high of ₹169 it touched in November 2021.

⭐Sona's EV biz charges up 🚘🔌

Auto component maker Sona BLW (-3%) is getting an EV boost. Its revenues from the EV segment doubled year-on-year in Q4. The segment currently represents 29% of overall revenues. Meanwhile, total revenues rose by a tepid 2% to ₹550 crore. Profits grew 75% to ₹105 crore mainly due to  lower tax expenses.

⭐No cool breeze👎

Voltas is feeling the heat! The company’s shares dipped 10% intraday after a 'thanda' performance in Q4. Its net profit declined 24% YoY to ₹183 crore. The company said that the third wave and extended winter affected sales, which remained flat. However, the early onset of summer resulted in a partial sales recovery in the quarter.

⭐Banking on digital 🏦 

Indian Prime Minister Narendra Modi is likely to launch 75 digital banking units across the country on August 15, according to reports. Connecting remote locations like Leh and Lakshadweep, these units will be totally paperless and will double as digital financial literacy centres.

⭐ Unicorns sans rainbows 🦄
India recently got its 100th unicorn (or startup valued over $1 billion). But only 23 startups from the list are profitable, according to a data analytics firm Tracxn Technologies. These unicorns have raised $80 billion from investors but have received flak for not achieving profitability. Since getting listed, shares of Paytm and Policybazaar, along with Zomato have fallen well below their listing prices.

⭐ Apple bites🍏 

Pay for Apple Music using your credit card? You’re in for a rude shock. Apple has stopped accepting payments from Indian cards for subscriptions and app payments on the App Store. Why? It is because of the new RBI guidelines for auto-debit payments announced last year. The only way around for Apple users to make payments is by adding funds to their Apple ID. 

In Focus

Down Down Down

‘Thodisi to lift kara de’ was probably the song on every investor’s lips today as Indian markets followed Wall Street and tumbled down.

Indian markets plunged to a two-month low on Friday. This came on the heels of the Nasdaq falling nearly 5% on Thursday. Earlier in the day, the FTSE also nosedived. So, what’s causing the fall?

We are well aware how the Ukraine crisis is driving up inflation. Being a large importer of crude is also not helping India as oil prices have come to a boil. 

But, the trigger for Friday’s collapse possibly came from the Bank of England (BoE)  using the dreaded R-word. On Thursday, it warned that the UK might slip into recession this year as high energy costs are driving inflation. 

The BoE also hiked rates by 0.25%. The British repo rate is now at 1% for the first time since 2009. Back in India, RBI’s surprise rate hike on Wednesday has also kept investors on edge. And these factors are impacting business confidence. In earnings season, the refrain is no longer profits, but lukewarm demand and inflation fears.

But there was a silver lining. While all indices were in the red and most bellwether stocks took a beating, ITC was among the few stocks that stood tall. The stock rose 1.3% today.

IPO corner

The LIC IPO juggernaut rolls on. On Day 3, India’s largest public issue was subscribed 1.3 times. While the policyholders’ portion was subscribed more than 3.5 times, the retail category has been fully subscribed. 

For the first time ever, the exchanges will accept applications to the LIC IPO over the weekend. Click here to apply for the LIC IPO on Upstox.

Good to know

What is book building?

When launching an IPO, book building is one of the methods used by companies to determine the selling price of the shares. Instead of deciding on a fixed price, through book building, the company assesses the demand and declares a price range for the bid. The investors select their bidding price and number of shares during the application. The cut-off price is finalised based on the received applications, once the bidding process is complete.

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