Tracking positive clues from the global market, domestic benchmark indices – BSE Sensex and NSE Nifty 50 opened higher. Most sectoral indices were in the green barring consumer durables. The BSE Sensex started the second week of 2023 at 60147.07 points, and the NSE Nifty 50 started at 17952.55 points.

The indices snapped a three-day losing streak and ended higher on Friday. IT and financial shares ended in the green, while consumer durable shares closed in the red. The thirty-share index closed at 60261.18 points, while the fifty-share index settled at 17956.60 points.

Top Gainers and Losers

Stocks that gained the most this week were Edelweiss Financial Services Ltd. (up 15.40%), CG Power and Industrial Solutions Ltd. (up 14.28%), Multi Commodity Exchange of India Ltd. (up 11%), eClerx Services Ltd. (up 10.67%), and Mahindra CIE Automotive Ltd. (up 9.99%).

On the other hand, some of the top losers this week were Varun Beverages Ltd. (down 12.70%), The Fertilisers and Chemicals Travancore Ltd. (down 8.97%), IDBI Bank Ltd. (down 8%), Gland Pharma Ltd. (down 7.06%), and Blue Dart Express Ltd. (down 6.72%).

The Recap

In this week’s recap, we’ll take a look at a new PLI scheme for IT hardware, a drop in startup funding in India, Alibaba selling a stake in Paytm and more.

The Government will soon launch a new PLI Scheme for IT Hardware

Union Minister of State for Electronics and IT Rajeev Chandrasekhar said that the Central government will soon launch an information technology server and IT hardware production linked incentive (PLI) scheme. He said that the Centre is also focused on Digital India RISC-V (DIR-V) programme for next-generation microprocessors to achieve commercial silicon and design wins.

“In the IT PLI, we will create additional incentives for those manufacturers and original equipment manufacturers (OEMs) that incorporate Indian-designed IP into their systems, into their products,” he added.

Startup funding in India drops 33% to USD 24 bn in 2022: Report

According to a report by PwC India, funding for Indian startups dropped by 33 per cent to USD 24 billion in 2022 as compared to the previous year though it was nearly double the amount recorded in 2019 or 2020. The startups received total funding of USD 13.2 billion in 2019, USD 10.9 billion in 2020 and USD 35.2 billion in 2021. As per the report titled ‘Startup

Tracker-CY 22’, global investors were still positive about the Indian startup ecosystem despite the global slowdown.

Alibaba sells nearly half of its direct stake in Paytm at Rs 535.9 per share

Chinese conglomerate Alibaba is learnt to have sold a 3.1 per cent stake – nearly half of its direct shareholding in digital financial services firm One97 Communications (Paytm), according to reports. However, its group firm Ant Financial has not diluted its stake in Paytm and continues to hold 25 per cent of the company. This development follows Alibaba’s stake sale in BigBasket and Zomato, indicating that Alibaba might be taking an exit from India.

NCLT approves PVR-INOX merger

The National Company Law Tribunal (NCLT) on Thursday approved the amalgamation of the country’s top two multiplex chains — PVR Limited and INOX Leisure. The NSE and BSE granted their approvals for the merger in June 2022 while the shareholders gave their approval to the merger in October 2022.

India-China trade climbs to USD 135.98 billion in 2022, trade deficit crosses USD 100 billion for the first time

According to data released by the Chinese customs on Friday, the trade between India and China has touched an all-time high of USD 135.98 billion in 2022 while New Delhi’s trade deficit with Beijing crossed for the first time a USD 100 billion mark despite frosty bilateral relations. The total India-China trade for 2022 has climbed to 135.98 billion, overtaking the USD 125 billion mark a year earlier by registering an 8.4 per cent increase. Meanwhile, China’s exports to India climbed to USD 118.5 billion, a year-on-year increase of 21.7 per cent.

Quarterly Results

HCL Technologies

HCL Tech on Thursday reported a 19 per cent increase in the consolidated net income to ₹ 4,096 crore for the third quarter ended December 31, 2022 driven by growth in services revenue. It reported an income of ₹ 3,442 crores during the same quarter a year ago. Its consolidated revenue grew by 19.56 per cent to ₹ 26,700 crores during the reported quarter from ₹ 22,331 crores in the December 2021 quarter.

However, it narrowed current fiscal growth guidance in the range of 13.5-14 per cent for the overall revenue in constant currency terms and margin to 18-18.5 per cent.

Infosys

Infosys on Thursday posted a 13.4 per cent year-on-year increase in consolidated net profit at ₹ 6,586 crore for the December quarter as against ₹ 5809 crores (after minority interest) in the corresponding quarter last year. It logged a 20 per cent year-on-year increase in consolidated revenue in the third quarter of the current fiscal at ₹ 38,318 crores. It also raised full-year revenue guidance to 16-16.5 per cent against the previously projected band of 15-16 per cent. The results beat street estimates on both profit and revenue.

Wipro

Wipro Ltd on Friday posted a 2.8 per cent year-on-year rise in its consolidated net profit for the December quarter, at about ₹ 3,053 crores against ₹ 2,969 crores in the corresponding quarter last year. Its revenue came in at ₹ 23,229 crore in Q3FY23, 14.3 percent higher than the same period of the previous year. According to a statement, the company expects revenue from IT services business for the full year to be in the range of 11.5-12 per cent in constant currency terms.

Written by Simran Bafna

The post Weekly Recap: PLI Scheme for IT Hardware, Alibaba sold a stake in Paytm, Startup funding in India and more appeared first on Trade Brains.