Benchmark Indices turned red on Monday and lost around 0.7%. Oil & Gas and Pharma gained, while IT, Bank, Auto, Metal, FMCG, Consumer Durable and Auto were under pressure. The week had four sessions as the markets were closed on Wednesday on account of Dusshera. Amid a choppy session on Friday, benchmark Indices BSE Sensex and NSE Nifty50 recovered most of their intraday losses.
As far as weekly movement is concerned, the Nifty 50 gained 3.16% and settled at 17,314.65 points. Similarly, the BSE Sensex gained 3.15% and quoted at 58,191.29 points during Friday’s closing bell. Investors on D-Street are waiting for TCS to kick off the corporate earnings season on Monday.
Market Movers
The stocks that gained the most this week were Mazagon Dock Shipbuilders Ltd. (Up 28.27%), Cochin Shipyard Ltd. (Up 19.07%), Poly Medicure Ltd. (up 16.81%), Mahindra CIE Automotive Ltd (up 15.01%), and Rattan India Enterprises (up 14.94%).
On the other hand, the stocks that lost the most this week were Suzlon Energy Ltd. (down 12.07%), Godrej Consumer Products Ltd. (down 8.85%), EPL Limited (down 7.09%), Aavas Financiers Ltd (down 6.65%), and JM Financial Ltd (down 6.18%).
The Recap
In this week’s recap, we shall take a look at what telcos have announced so far, the slump sale by United Spirits, why brokerage charges might increase and more.
United Spirits has completed the slump sale of 32 brands .
● United Spirits has completed the slump sale of the entire business undertaking associated with 32 brands in the ‘Popular’ segment to Inbrew Beverages. ● In addition, it has given effect to the franchise of 11 other brands in the ‘Popular’ segment in favour of Inbrew for a period of five years.
● Inbrew has the option to (a) convert the fixed-term franchise arrangement into a franchise arrangement with perpetual rights to use; and/or (b) acquire such brands.
5G Launch in India: Here’s what telcos have announced so far
● Airtel became the first company to launch 5G services in India, followed by Reliance Jio, which has rolled out its 5G services in select cities by invitation only. ● Bharti Airtel’s 5G services don’t require the need to change the existing 4G SIM as it is 5G enabled.
● Vodafone Idea is also planning to launch its 5G services, but it has not mentioned a specific date or deadline by which its 5G services are expected.
Zerodha Founder, Nithin Kamath said that brokerage chargers might go up
● SEBI has issued a circular about the new account settling process. Accordingly, stock brokers will have to transfer unused funds back to the customer’s bank account, periodically.
● He said that there will be upward pressure on brokerage rates over the next few years due to these regulatory changes.
● However, he clarified that Zerodha has no plans to increase brokerage for now. He just said that there is a high probability of it going up due to higher working capital requirements.
World Bank cuts India’s growth estimate by 1 percentage point
● The World Bank on Thursday lowered its FY23 growth forecast for India by one percentage point to 6.5%.
This happened in line with the downward revision for entire South Asia’s growth. ● The multilateral agency acknowledged that Asia’s third-largest economy has recovered from the pandemic more strongly than the world average.
● It lowered the regional growth to an average of 5.8% this year, a downward revision of one percentage point from the forecast it made in June, against a 7.8% growth in the year before when most countries were rebounding from the pandemic slump.
Five Indian companies are riding the tailwind due to the PM’s manufacturing push
● The Modi government approved a new incentive program called the Production Linked Incentive Scheme (PLI) for large-scale electronics manufacturing, in March 2020.
● Initially, it had 32 beneficiaries of which 10 were approved for mobile manufacturing. This scheme has now been extended to fourteen sectors, including automobile, steel, and pharmaceuticals.
● A few companies that will benefit from this scheme are Dixon Technologies, Tata Power Solar, Adani Infrastructure, Reliance New Energy, and Larsen & Toubro (L&T).
Written by Simran Bafna
