Falling
NIFTY50 16,201 276 (-1.6%) SENSEX 54,303 1016 (-1.8%)
10 June 2022
Hello Traders !
Meta Platforms has unfriended Facebook, at least on the stock market. The company said that its stock will begin trading on Nasdaq under the ticker symbol 'META 'instead of 'FB'.
Meanwhile, investors too had a heartbreaking session today as the markets tumbled on the last day of the week.
After a weak opening, markets drifted downwards throughout the day amid muted global cues.
In all, 37 of the Nifty50 stocks closed in the green.
Investors were spooked by concerns over the impact of aggressive monetary policy tightening by the central banks.
All the Nifty sectoral indices closed in the red, with Financial Services (-2.2%) and IT (-2.1%) witnessing the highest losses.
Gainers Change(%) Losers Change(%)
Grasim +1.6% Bajaj Finance -2.9%
Apollo Hospitals +1.6% Kotak Bank -2.2%
Asian Paints +1.3% HDFC -1.8%
Today’s Action
Indian economy
Credit rating agency Fitch has revised its outlook on India to ‘Stable’ from ‘Negative’ with a rating of BBB-. It believes that growth prospects for the medium term are favourable. Earlier, Fitch lowered India’s economic growth forecast for FY23 to 7.8% from its March forecast of 8.5%. The rating agency also said it expects inflation to remain elevated at 6.9% in FY23.
Bajaj Auto to consider share buyback
BAJAJ-AUTO (NSE): 3,877 1.6 (-0.04%)
Two-wheeler maker Bajaj Auto will reportedly consider a share buyback on 14 June. This will be the first time since 2000 that the company will consider such a move. Meanwhile, the company is also expected to roll out an electric vehicle in June from its new EV manufacturing plant in Pune.
Lunolux’s Eureka
EUREKAFORBE (BSE): 318.3 1.7 (-0.5%)
US-based fund Lunolux, the majority stakeholder in Eureka Forbes, has launched an open offer to acquire a further 26% stake in the home appliances maker. Lunolux has set the offer price at ₹210.15 a share. In September 2021, Lunolux had agreed to buy up to a 72.56% stake in Eureka Forbes from Shapoorji Pallonji Group for ₹4,400 crore.
Renewables
As per a report, India's investments into renewable energy more than doubled (or rose by 125%) in FY22, as compared to a year ago. India pumped a whopping $14.55 billion into renewables in the last fiscal. The report by the Institute for Energy Economics and Financial Analysis stated that most of the money came in through acquisitions, which accounted for 42% of all investments in FY22.
IIFL Finance rises
IIFL (NSE): 349 21 (+6.4%)
IIFL Finance was up 10% intraday, after its subsidiary received a significant investment. Sovereign wealth fund Abu Dhabi Investment Authority (ADIA) has invested ₹2,200 crore for a 20% stake in IIFL Housing Finance. This is one of the largest equity investments in the affordable housing segment. The NBFC will use the funds to expand into new markets to tap the growing demand for housing loans.
Investors tune out
Media stocks have been trending lower in the past few months. Stocks like Zee Entertainment, Sun TV and TV Today Network are down in the range of 14 to 38% in 2022. One of the likely reasons for subdued investor sentiments towards media stocks has been the planned implementation of New Tariff Order (NTO 2.0) by Telecom Regulatory Authority of India's (TRAI). Let's find out what it’s all about.
According to the NTO 2.0, the rates of individual TV channels have been capped at ₹12 per channel, down from ₹19. It also says that consumers are allowed to access 200 channels of their choice for ₹130.
However, broadcasters have been opposed to the idea. They say that the price of a channel should not be capped, but should be set based on the demand for it and the quality of content. However, the industry body for cable companies, AIDCF, has backed the ₹12 cap per channel.
Meanwhile, media companies have got a breather, as the implementation of the new order has been delayed from 1 June to 30 November. But until the new order brings any relief from price capping, media stocks face an uncertain future.
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