IRCTC shares fall on 7% & More on Today’s Market

Banks to maintain 10% incremental CRR

The Reserve Bank of India has declared that starting from August 12, banks are required to maintain an incremental cash reserve ratio (ICRR) of 10 percent. This move is part of the central bank's strategy to address the surplus liquidity in the banking system that arose due to the withdrawal of the Rs 2,000 currency note. The RBI's decision to withdraw the Rs 2,000 note was announced on May 19, allowing individuals to either exchange or deposit the note. As of July 31, approximately 88 percent of the Rs 2,000 banknotes in circulation, amounting to Rs 3.14 lakh crore, had been returned to the banking system. The implementation of the ICRR is a temporary measure designed to manage the sudden influx of deposits and reduce excess liquidity in the system.

Sula Vineyards Q1 profit jumps 24.4%

Following impressive Q1 financial results, Sula Vineyards witnessed a nearly 2 percent surge in its share value on August 10. As of 12:31 pm, the stock had climbed 1.23 percent to Rs 501.75 on the NSE. Renowned as India's leading winemaker, Sula Vineyards recorded a notable 24.4 percent increase in first-quarter profit on the same day. This growth was attributed to robust demand for its premium wines and a notable rise in visitor numbers to its vineyards. Having gained the distinction of being India's sole listed winemaker in December of the previous year, the Mumbai-based company disclosed a consolidated net profit of Rs 13.68 crore, marking a substantial rise from the previous year's Rs 11 crore profit.

Paytm shares gain on UPI-lite transactions announcement

At 12:50 pm, Paytm shares exhibited a rise of 2.48 percent, reaching Rs 858.6, following the Reserve Bank of India's proposition to elevate the minimum threshold for UPI Lite transactions. The central bank's announcement on August 10 revealed its intention to increase the UPI-Lite limit from Rs 200 to Rs 500. The purpose of UPI-Lite, introduced to facilitate transactions of lower monetary value such as payments for everyday items like groceries, milk, and eggs, is to enhance the seamlessness of continuous transactions through the UPI system.

IRCTC shares fall on 7%

The Indian Rail and Transport Corporation (IRCTC) experienced a 7 percent year-on-year decrease in profits, amounting to Rs 231 crore, primarily influenced by an exceptional loss and a reduced operating margin. However, the company observed a notable 17.5 percent surge in revenue from operations, reaching Rs 1,001.8 crore in the quarter ending June 2023. Noteworthy revenue changes included a 35 percent YoY increase in the catering segment to Rs 471 crore, a 4 percent drop in revenue from internet ticketing business to Rs 290 crore, and a remarkable 58 percent spike in revenue from the tourism business, totalling Rs 130 crore. The quarter's earnings before interest, tax, depreciation, and amortization (EBIDTA) also displayed growth of 6.9 percent, amounting to Rs 343 crore, though the EBIDTA margin saw a decrease from 37.6 percent in the same quarter of the previous fiscal year to 34.2 percent. IRCTC's earnings call is scheduled for later today, while its stocks at 9:40 am were trading lower at 637.85, reflecting a nearly 2 percent decline from the previous day's closing.

Conclusion

In conclusion, today's market update provides insights into the performance of various sectors and key companies in the Indian stock market. The Nifty 50 and the Sensex experienced slight declines, with the banking and financial sectors being major contributors to the market's downturn. Concerns over rising inflation and the possibility of a rate hike by the Reserve Bank of India affected market sentiment.

On the downside, IRCTC faced a 7 percent decrease in profits, attributed to exceptional losses and a reduced operating margin. However, the company witnessed notable revenue growth in various segments.

In conclusion, the Indian stock market's performance today reflects a mixture of challenges and opportunities across different sectors, underscoring the ongoing impact of economic factors and regulatory changes on the market's trajectory.

Source - Moneycontrol