Nifty50: 18,414 ▼ 245 (-1.3%)
Sensex: 61,799 ▼ 878 (-1.4%)
Namaste, friends!
The holiday rush is at its peak! The images of serpentine-like queues at Delhi airport are going viral on social media platforms. It’s not just you and us, but the bulls also seem to be in holiday mode. Possibly why they were missing in action today as the bears roared. More on that later.
- The markets witnessed broad-based sell off.
- In the Nifty50 universe, 45 stocks declined.
- Investors were jittery after the Fed said that it will continue to hike rates.
Among the Nifty sectoral indices, all ended in the red with IT (-2.1%) and Media (-2.0%) being the top losers.
| Top gainers | Today’s change |
| Britannia | 4,460 ▲ 50 (+1.1%) |
| Hero MotoCorp | 2,769 ▲ 21 (0.79%) |
| NTPC | 172 ▲ 0.7 (+0.4%) |
| Top losers | Today’s change |
| Tech Mahindra | 1,024 ▼ 40 (-3.8%) |
| Titan | 2,520 ▼ 70 (-2.7%) |
| Infosys | 1,539 ▼ 39 (-2.5%) |
What’s trending
⭐ Torrent Pharma’s sweet deal
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TORNTPHARM (NSE): 1,604 ▼ 18 (-1.1%)
Torrent Pharmaceuticals has entered into a strategic alliance with Boehringer Ingelheim India (BI India) to co-market the SGLT-2 inhibitors, an anti-diabetic drug in India. According to industry reports, the market for SGLT-2 inhibitors is valued at ₹1,927 crore. The market has been growing at a CAGR of 33% over the last four years.
⭐ Ramkrishna Forgings bets on EVs
RKFORGE (NSE): 256 ▼ 0.5 (-0.2%)
Ramkrishna Forgings has approved an investment to acquire a controlling stake (51% voting rights) in TSUYO Manufacturing, which is engaged in powertrain solutions for electric vehicles. Ramkrishna Forgings will invest around ₹100 crore in TSUYO in next five years to enhance the latter’s product portfolio. TSUYO expects to generate a turnover of ₹500 crore by the end of the fifth year.
⭐ Smokin’ hot rally in Sapphire Foods
SAPPHIRE (NSE): 1400 ▲ 39 (+2.9%)
The company which operates the KFC and Pizza Hut chain saw its stock rise 6.3% intraday powered by a block deal. Nearly 10.7% equity changed hands via this block deal.
The company had already announced that one of its shareholders, WWD Ruby intends to offload 31 lakh shares in multiple tranches by 21 December. Meanwhile, another promoter and shareholder, Sagista Realty Advisors is also exploring opportunities to sell 1.5 lakh shares in the company.
The mandatory IPO lock-in period for the company ended in November 2022.
⭐ Airtel partners with Tech Mahindra
BHARTIARTL (NSE): 825 ▼ 3.3 (-0.4%), TECHM (NSE): 1024 ▼ 40 (-3.8%)
Telecom major Airtel has announced a strategic partnership with Tech Mahindra under which they have deployed a captive private 5G network at Mahindra’s Chakan facility, making it India’s first 5G enabled Auto manufacturing unit. Airtel has been testing use cases and spectrum delivery with multiple partners and at several locations as a part of its 5G for business solution.
In Focus
India’s IT sector: 2008 redux?
Indian IT sector has been out of favour among investors this year. The Nifty IT index, which tracks tech stocks, has given consistent returns to investors. It grew almost three times between 2017 to 2021.However, in 2022, most IT stocks have tumbled from their highs. Why is this happening? Get the full download here.
The Big Fall
In 2022, Nifty IT index has declined over 24% on a year-to-date basis. Shares of Wipro, Tech Mahindra, Mphasis were major index draggers, declining 42–44% since January this year. Meanwhile, index heavyweights, TCS and Infosys are down 11.5% and 18% respectively.
Reasons for the fall
One of the key reasons behind this is changing macroeconomic factors in the west. Aggressive rate hikes will most likely slow down growth in key markets like the US.
Uncertain economic conditions limit growth prospects for companies, which indirectly leads to a cut back on IT spends. This directly impacts the Indian IT sector as IT companies derive nearly 60% of their revenue from the US market.
However, this is not the first time the IT sector will witness such a fallout. Back in 2008, when the economic recession was at its peak, the IT index declined over 54% on a yearly basis. But, in the subsequent year i.e 2009 the IT index rose by 166%.
Will 2023 see the IT sector log in to better times? Watch this space, because we will track it for you.
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Good to know
What is a Block Deal?
A block deal is a single transaction of either minimum 5 lakh shares or a minimum value of Rs 5 crore, mostly between two institutional players. Given the large quantity of shares involved in the transaction, it is done through a separate ‘block deal’ window to prohibit any risks of market volatility. On NSE, block deals take place in two sessions (morning and afternoon) each of 15 minutes. The price range for such a deal should be within +1% to -1% of the current market price or the previous day’s closing price.
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