Nifty50: 17,893 ▲ 21 (+0.1%)
Sensex: 60,806 ▲ 142 (+0.2%)
Hello!
Google parent Alphabet Inc lost $100 billion in market value today. All because of its chatbot, BARD. As per reports, this newly unveiled chatbot shared wrong information in a promotional video which was pointed out by an international media portal. What followed was a complete frenzy and the internet giant’s stocks tanked.
Maybe the bigger lesson here is: Intelligence of any kind, human or artificial, is never foolproof.
Investors in India, meanwhile, were left scratching their heads the entire day today. Here’s why.
- Indices end a volatile day in the green.
- 25 companies out of Nifty50 declined.
- Fed pressure triggers selloff.
Among the Nifty sectoral indices, IT(+0.7%) and Media (+0.6%) were the top gainers, while Metal (-1.5%) and Realty (-0.5%) were the top losers.
| Top gainers | Today's change |
| Bajaj Finserv | 1,400 ▲ 31 (+2.2%) |
| Hindalco | 446 ▲ 9 (+2.2%) |
| HDFC Life | 519 ▲ 11 (+2.1%) |
| Top losers | Today's change |
| Adani Enterprises | 1,922 ▼ 242 (-11%) |
| Adani Ports | 581 ▼ 17 (-2.9%) |
| Hero MotoCorp | 2,561 ▼ 52 (-2.0%) |
What’s trending
⭐ Hindalco Industries profit tanks
Aluminium firm Hindalco (+2.2%) reported a sharp 63% YoY drop in consolidated net profit to ₹1,362 crore during the December quarter. Elevated input costs and inflationary pressure impacted profitability. However, its revenue from operations rose by 6% YoY to ₹53,151 crore driven by higher volumes and steady operational performance across India operations
⭐ Greaves Cotton’s acquisition
Engineering firm Greaves Cotton (-0.5%) will acquire 100% stake in motion control systems company Excel Controlinkage for ₹385 crore. The acquisition will enable it to build a complementary product portfolio with common customer segments. Meanwhile, the company reported 6% YoY rise in revenue to ₹514 crore during the December quarter.
⭐ IRCTC chugs to double-digit growth
Ticketing arm of Indian Railways, IRCTC (+1.3%) reported 22% growth in net profit to ₹256 crore during the December quarter. Revenue from operations, meanwhile, surged 69% YoY to ₹918 crore. The company also announced an interim dividend of ₹3.5 per share, with 22 February being the record date.
⭐ Mutual Funds inflows up 72%
Equity mutual funds reported witnessed total inflows of ₹12,546 crore in January, a rise of 72% on a monthly basis with small cap funds leading the pack. This comes at a time when the broader Nifty50 index declined 2.4%. As per data released by AMFI, total assets under management (AUM) stood at ₹39.6 lakh crore.
In Focus
Realty cos. bank on robust sales
Leading realty firms have reported robust December quarter numbers. Let's take a brief overview of results and key factors that supported earnings growth.
Sales Bookings stay strong
During the December quarter, realty firms like Godrej Properties, DLF, Macrotech Developers and SOBHA reported double-digit growth in new sales bookings. This despite the increase seen in lending rates. Godrej Prop reported an increase of 111%, DLF saw 24% increase and Macrotech saw bookings rise 16%. Sobha reported its highest-ever sales value ₹1,425 crore.
Experts are reading this as a sign of strong demand for real estate. There is talk now of the beginning of a ‘long term upcycle’ in the sector. Growth in sales bookings is an important performance metric for the real estate sector, which gives signs of future revenue and profitability.
Companies cut down on debt
Companies have also focused on reducing debt amidst rising interest rates. All firms have kept the debt-to-equity ratio below 1. This could ease their interest cost burden.
In the real estate sector, leverage is often used to finance the acquisition and development of properties. Hence, debt to equity ratio becomes an important metric for evaluating the financial health of real estate companies.
Profitability improves
The profitability of these companies also improved during the quarter. Godrej Properties reported a 51% YoY rise in net profit, while DLF saw 35% increase, Macrotech Developers saw net profit rose by 6%. While Sobha reported lower profits.
Overall, the real estate sector ended 2022 with bang as indicated by quarterly results. What’s in store for 2023? Companies for one, are certainly feeling bullish. Why else would they go around buying land (both Oberoi Realty and Godrej Properties have acquired land parcels recently)?
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