Why Delta tanked 23% and Nazara 3.3%?

The 28% GST rate imposed on the full value of online gaming stole the limelight after the 50th GST Council meeting. On expected lines, online gaming stocks reacted on a bearish note on Wednesday. Experts believe the 28% tax rate is a setback for Indian players. But what’s interesting is that, Rekha Jhunjhunwala-backed Nazara Technologies’ share price fall was limited to just 3.3%. On the other hand, Delta Corp stock plunged nearly 23%. Delta Corp’s market cap decreased by about Rs 1,600 cr, and fell more than its FY23 revenue of Rs 1,021 cr. Nazara expects the 28% GST rate to impact only its skill-based real money gaming segment, which contributes 5.2% to its overall consolidated revenues for the fiscal year FY23.

SpiceJet tanks 11% on DGCA ‘surveillance’
The SpiceJet share price declined 11 percent intraday on July 12 after reports of the aviation regulator putting the company under enhanced surveillance. The DGCA has put SpiceJet under “enhanced surveillance” after the budget airline flew into multiple financial headwinds in recent months. While the carrier has refuted any such development, multiple reports say the enhanced surveillance is on for more than three weeks now and it is an ongoing process. Reportedly, according to officials, it includes increased night surveillance and spot checks, where the focus is to ensure that due to financial issues, there are no potential adverse impact on the flight operations and that there is no “cutting corners” on safety. The development comes against the backdrop of various lessors seeking repossession of aircraft leased to SpiceJet after some of the cases being settled by the cash-strapped airline.

Elgi Equipment Shares Hit Record
Shares of Elgi Equipments Ltd. jumped over 12% to hit a record high on Wednesday after winning an order from Siemens. Shares climbed up to 14% during intraday. The company received a 10-year supply order from Siemens Ltd. for the supply and maintenance of air generation and treatment units and aux compressors. The order is required to provide 35 years of maintenance from the date of supply. Shares hit a record high at Rs. 623. The total traded quantity so far in the day stood at 19.6 times the 30-day average volume. Out of the four analysts tracking the stock, two maintain a ‘buy’ and two suggest a ‘sell’, according to Bloomberg data.