Nifty50: 18,028 ▼ 128 (-0.7%)
Sensex: 60,613 ▼ 419 (-0.6%)
Greetings, folks!
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- Amid weak global cues, benchmark indices closed lower for the second consecutive day.
- In all, 39 of the Nifty50 stocks closed in the red.
- Investors await data on India’s manufacturing output in September to be released on Friday.
All of the Nifty sectoral indices closed in the red, with Auto (-1.9%) and PSU Bank (-1.2%) witnessing maximum losses.
| Top gainers | Today's change |
| Hero MotoCorp | 2,715 ▲ 63 (+2.3%) |
| HDFC Bank | 1,527 ▲ 18 (+1.2%) |
| Kotak Bank | 1,913 ▲ 20 (+1.0%) |
| Top losers | Today's change |
| Tata Motors | 413 ▼ 19 (-4.6%) |
| Axis Bank | 841 ▼ 32 (-3.7%) |
| M&M | 1,296 ▼ 41 (-3.0%) |
What’s trending
⭐ Govt offloads its stake in Axis Bank
AXISBANK (NSE): 841 ▼ 32 (-3.7%)
Shares of Axis Bank were trading lower today, reacting to the stake sale by the government via the offer for sale (OFS) mechanism. The two-day stake sale is undertaken by The Specified Undertaking of the Unit Trust of India, which will sell 4.65 crore shares or 1.55% stake in the private lender at a floor price of ₹830.6 per share. On Day 1 of the OFS, non-retail investors placed their bids, while retail investors can bid on the second day.
⭐ Pidilite reports revenue growth
PIDILITIND (NSE): 2,662 ▲ 9.7 (+0.3%)
Adhesive maker Pidilite Industries has reported 15% YoY rise in its consolidated net sales at ₹3,000 crore, while its net profit declined by 10% YoY to ₹338 crore. The management said that margins were impacted owing to raw material inflation, a weaker currency and high-priced inventory. The company’s total expenses stood at ₹2,586 crore, up by 20% YoY.
⭐ Eicher Motors’ profit jumps
EICHERMOT (NSE): 3,700 ▼ 32 (-0.8%)
Eicher Motors reported a jump of 76% year-on-year (YoY) in its net profit at ₹657 crore. Meanwhile, revenue from operations also rose by 57% YoY to ₹3,519 crore. Input costs rose 45% YoY to ₹2,001 crore. The management said that they witnessed a great uptick in momentum with the launch of the new Hunter 350. In Q2, they strengthened their market share in the heavy duty trucks and buses segment while launching a slate of new products.
⭐ Lupin posts strong numbers
LUPIN (NSE): 723 ▲ 28 (+4.1%)
Drug maker Lupin reported net profit of ₹130 crore in Q2 after reporting a loss of ₹2,098 crore in the year-ago period. However, revenue from operations rose marginally by 1.3% YoY to ₹4,145 crore. The company said it paid ₹1,878 crore towards litigation and settlement related expenses in 2021 with respect to an antitrust class action filed in the US. The management said that the company has performed in line with their expectations and is on the path of growth in sales and profitability.
In Focus
Hospitality sector in upbeat mood
It seems like the cash registers are ringing for the Indian premium hospitality sector. Most companies in the sector reported solid numbers in the first quarter of this fiscal. Further, the industry is also seeing new inventory addition. What’s driving optimism in the industry? Let's find out.
According to a report, the industry is witnessing better-than-expected demand recovery in the past few months. The overall demand in the premium category is driven by meetings, conferences and wedding events that are on the rise, resulting in new supply addition. India’s premium hospitality category has nearly 95,000 rooms across 12 key cities. As a result, the sector is likely to see inventory addition at a 5-year CAGR of 3.5–4%, adding nearly 15,500 rooms in the next five years.
Till October 2022, the occupancy rate in the premium category stood at 62–64% while average room rate (ARR) was in the range of ₹5,000–5,200, which is just 10% below the pre-Covid levels. However, the surge in business travel, foreign tourist arrivals and the pickup in construction activity of stalled hospitality projects is helping drive inventory growth.
From the investors’ perspective, key hospitality stocks have given stellar performance so far this year. Shares of Indian Hotels, Lemon Tree, EIH and Chalet Hotels have outperformed the markets, rising in the range of 19-42% since April 2022.
The ongoing healthy demand uptick and addition of new inventories is expected to support the future growth in revenue and profitability.
IPO Corner
On Day 2, the IPO of specialty chemical manufacturer Archean Chemical Industries was subscribed 1.41 times. In comparison, the public issue of Five Star Business Finance received a muted response. The non-banking finance company’s IPO was subscribed 0.32 times on Day 2. Click here to apply for these IPOs on Upstox. Meanwhile, the Kaynes Technology IPO was subscribed 0.23 times on its first day.
Good to know
What is free cash flow?
Free cash flow is the cash a company generates after taking into consideration cash outflows that support its operations and maintain its capital assets. It is calculated by subtracting capital expenditures from the operating cash flow.
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