Bullets

The Rupee hits a record low of ₹79.65 against the Dollar on 12th July, Tuesday. Other Asian currencies also faced a fall in value against the dollar in response to a perceived global recession threat. Just like the US seems to be the hub for alien invasions in Hollywood movies, the "currency depreciation problem" seems to be limited to the Asian continent.

Speaking of Hollywood movies, Adani group is trying to climb the 5G tower, like King Kong on the Empire State Building. The current value of the auction is not yet available to the public domain. So, does this mogul's entry into the 5G airspace mean a repeat of the 2016 "Jio phenomenon" with the masses shifting their focus to the new shiny and fast network? Well, not quite, Adani's current bids on the 5G airwave is to acquire it for private use. Adani could make a splash in the telecom market, however, all they would need to do is obtain the appropriate licenses and India would be ready for Fortune 5G!

Let’s talk about fundraising. Power Grid Corporation of India, the state-owned electric utility corporation, is all set to issue secured/unsecured, non-convertible, noncumulative/cumulative, redeemable, taxable/ tax-free debentures/bonds under private placement in the FY2023-24 as the company gets the positive nod to raise funds up to ₹6,000 Crore. 

That was about the PSU; private companies are never behind when it comes to fundraising. Paisalo Digital, a leading systematically important NBFC, has already raised ₹14 crores through NCDs with a tenure of 10 years from the date of allotment.  

Moving forward to unlisted startups, GrowthX, a social learning community, announced that they have raised $1.5 Million, apparently the largest ever community-led seed round funding, a collective contribution of 212 angel investors. Nevertheless, 65% of the funds were raised by the company's very own community members. 

Adani Transmission, the power transmission arm of the Adani group, is set to acquire shareholder approval to enter related party transactions with three of its special purpose vehicles. The power business cousin of Fortune Oil will be transacting with Adani Enterprises Ltd. @ ₹2,500 crore, Adani Infra (India) Ltd. @ ₹5,200 crore and Adani Properties Pvt. Ltd. @ ₹2,900 crore.

Moving from one oil company to another, the producer of arguably India's favourite hair oil, Marico Ltd., is slipping down an oil slick as it reported a reduced sales volume for the first quarter of the financial year 2023. While Parachute, the face of Marico, faced only a marginal dip in sales volume, the cause of the company's lowered sales was reported by the FMCG giant to be a fall in the sale volume of Marico's Saffola.

Moving from one edible liquid to another (Parachute is edible btw, just so you know), Coffee Day enterprises ltd. reported a total default of ₹470.18 crore. The default was in context to borrowings from banks and financial institutes. The reason behind this default was reported to be "liquidity crisis" by the QSR company.

The loan book of IDBI bank's crossed ₹10,000 crore, doubling from the ₹5,000 crore seen two years ago. The bank gives credit for this growth to its fully automated loan processing system, which allows customers to finish the borrowing process in around 15 minutes.

Speaking of banks... Yes Bank, a perpetual black sheep for both investors and customers, has shown some positive with a "healthy" growth in the deposits from ₹1.63 lakh crore last year, to ₹1.93 lakh crore this year. However, this growth is not a full-fledged positive as the current figures are a fall from the deposits worth ₹1.97 lakh crores from the last quarter ending in March 2022.

Trailing away from banks, but on the topic of payments, UPI transactions stayed above the threshold of ₹10 lakh crore at ₹10,14,384 crore with around 5.86 billion transactions. These figures have fallen by 2.6% from the previous month's 5.95 billion transactions worth ₹10,41,506 crore. UPI as a mode is still far from done as this fall came after a rise from the 5.58 billion transactions worth ₹9,83,302 crore observed in the month of April. The rise was almost twice the fall, so things might not be too bleak for the digital intermediary.

On the weekly expiry day for Nifty options, i.e. Thursday, an unknown trading house placed an order. It can become India's biggest trading mistake yet, causing the trading house a loss of approximately 250 crores. How was it done? Well, mouse misclick.
This, as people like to call it, is a 'fat finger' trade, caused by punching a wrong key or a mouse misclick which leads to a huge loss for the one executing the trade and windfall gains for others.
Between 2:37 pm and 2:39 pm, a trader sold 25,000 lots of Nifty call options at 14,500 strike at an erroneous price of Re 0.15. The market price of the contract was about ₹2100 when this trade was placed in the exchange. Each lot of Nifty contract is of 50. So, the simple calculation for loss is 25,000 x 50 x Rs 2,000 = Rs 250 crore.

Apparently, two brokers, based in Kolkata are said to have benefitted from this, one up by 50 crores and the other by 25 crores. 

The reason we believe that it COULD be the biggest mistake trading mistake in the history is because, since the trade was between two brokers, it is most likely that the trader had insurance and the loss can be covered. 

Let’s see if this becomes a record in history or a learnt lesson.

The stock market has been choppy for a while now and amid all the volatility let's take a look at how the quarter 4 results of some popular companies have been.

M&M’s quarter profits jumped by 5x to ₹1,192 crores, and revenue grew by 28% while the profit of IIFL jumped by 80%. The rally of profits for companies is not over. GAIL India also reported a jump of 40% in net profits owing to the rise in sales of natural gas. 

On the flip side, Ruchi Soya reported a 25% decline in its standalone net profits. Nykaa also recorded a sharp decline of 49% in its net profit. While the profits of JSW steel witnessed a 22.96% drop in its consolidated profits. PB Fintech which posted a net loss of last year has widened it to ₹219.61 crores. Even the net loss of Zomato tripled this quarter. 

To sum it up, the overhyped & shiny IPOs such as Nykaa, Zomato and PB Fintech were unable to deliver and the stock price in the case of Nykaa and Zomato has seen a sharp decline due to the same reason.   

Sensex saw a meteoric rise of 1,534 points with Nifty following in the same direction with 456 points. The two indices ended up at 54,326 and 16,266 points respectively.
Other major indices like metals, realty, PSUs and pharma, all saw a rise of 3-4% each. So, is the stock market turning green a sign that it’s turning over a new leaf?

One of the reasons for this sudden uptrend is manic buying that came as a result of Thursday's drop of Sensex and Nifty by 1,416 points and 430 points respectively. These tumbles are very in trend with the fall of the two indices by 3,585 points (Sensex) and 1,126 points (Nifty). Guess the masses are learning to “buy the dip” after all.

But today’s fantastic rise makes room for another question… If the traders get in on this action, is the share market looking to go on a roller coaster ride of ups and downs as traders try to “buy-low, sell-high”?