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The Fed effect – Upstox

Handy50: 18,414 245 (-1.3%)
Sensex: 61,799 878 (-1.4%)


Namaste, friends!

The holiday rush is at its peak! The images of serpentine queues at Delhi airport go viral on social media platforms. It’s not just you and us, but the bulls also seem to be in vacation mode. Possibly why they went missing today as the bears roared. More on that later.


  • The markets witnessed a broad sell-off.
  • In the Nifty50 universe, 45 stocks fell.
  • Investors were nervous after the Fed said it will continue to raise rates.

Of the Nifty sector indices, all ended in the red, with IT (-2.1%) and Media (-2.0%) the biggest losers.

Toppers Today’s change
Britain 4,460 ▲ 50 (+1.1%)
Held 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


⭐ The good deal from Torrent Pharma

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TORNT PHARM (NSE): 1,604 ▼ 18 (-1.1%)

Torrent Pharmaceuticals has entered into a strategic alliance with Boehringer Ingelheim India (BI India) to commercialize SGLT-2 inhibitors, an antidiabetic drug, in India. According to industry reports, the market for SGLT-2 inhibitors is valued at ₹1,927 crore. The market has grown at a CAGR of 33% over the past four years.

⭐ Ramkrishna Forgings bets on EVs

RKFORGE (NSE): 256 ▼ 0.5 (-0.2%)

Ramkrishna Forgings has approved an investment to acquire a majority stake (51% voting rights) in TSUYO Manufacturing, which is engaged in powertrain solutions for electric vehicles. Ramkrishna Forgings will invest about ₹100 crore in TSUYO over the next five years to enhance its product portfolio. TSUYO expects to generate revenue of ₹500 crore by the end of the fifth year.

See also  Big Bull set to bequeath Rs 50,000 cr fortune to wife and children

⭐ Smokin’ hot rally at Sapphire Foods

SAPPHIRE (NSE): 1400 39 (+2.9%)

The company that operates the KFC and Pizza Hut chain saw its inventory rise 6.3% intraday thanks to a block deal. Almost 10.7% of the equity changed hands through this block deal.

The company had already announced that one of its shareholders, WWD Ruby, plans to sell 31 lakh shares in multiple tranches by December 21. 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 has partnered 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 closed private 5G network at Mahindra’s Chakan facility, making it India’s first 5G-capable automotive manufacturing facility. Airtel has been testing use cases and spectrum delivery with multiple partners and locations as part of its enterprise 5G solution.


Focused


India’s IT sector: reduction in 2008?

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The Indian IT sector has been out of favor with investors this year. The Nifty IT index, which tracks technology stocks, has provided investors with consistent returns. It grew nearly three times between 2017 and 2021. However, by 2022, most IT stocks have fallen from their highs. Why is this happening? Get the full download here.

The great fall

In 2022, The Nifty IT index is down more than 24% since the start of the year. Shares of Wipro, Tech Mahindra and Mphasis have been big index pullers, falling 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 main reasons for this is changing macroeconomic factors in the west. Aggressive rate hikes will most likely slow growth in key markets such as the US.

Uncertain economic conditions limit growth prospects for companies, indirectly leading to cutbacks in IT spending. This has a direct impact on the Indian IT sector as IT companies derive almost 60% of their revenue from the US market.

However, this is not the first time the IT sector has witnessed such an outage. In 2008, when the economic recession was at its peak, the IT index fell by more than 54% year-on-year. But in the following year, 2009, the IT index increased by 166%.

Will the IT sector log in to better times in 2023? Pay attention to this space, because we will follow it up for you.


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Markets often see sharp price movements triggered by positive news or technical patterns. In such situations, you may want to double down on certain high conviction trades. However, having limited capital can be a barrier to taking advantage of such opportunities. Margin Trading Facility (MTF) on Upstox allows you to increase your trading capacity instantly. Click here to learn more about MTF.

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Good to know

What is a block deal?

A block deal is a single transaction of a minimum of 5 lakh shares or a minimum value of Rs 5 crore, usually between two institutional players. Given the large amount of shares involved in the transaction, this is done through a separate ‘block deal’ window to eliminate risks of market volatility. On NSE, block deals take place in two sessions (morning and afternoon) of 15 minutes each. The price range for such a deal must be within +1% to -1% of the current market price or the previous day’s closing price.

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