Divestment buzz is back

Nifty50: 15,746 ▲+63 (+0.4%)
Sensex: 52,574 ▲+230 (+0.4%)

After a gap-down opening, the markets steadily climbed up throughout the day and closed in the green. The market breadth was strong with 36 of the Nifty50 stocks witnessing gains.

All the Nifty sectoral indices, except Auto (-0.4%) and IT (-0.2%), closed positively, with the PSU Bank (+4.1%) seeing maximum gains.

Here are the top stories of the day.

Maruti Suzuki to hike prices in Q2

• The country’s largest car manufacturer is planning to raise prices of its cars to offset rising input costs. This will be the second price hike by Maruti this fiscal after the 1.6% hike in the June quarter.
• The company said that the input costs have risen over the past year, and it will have to pass on some of the costs to the customers. The quantum of the price hike will vary across models. Shares of Maruti Suzuki were down 1% today and have declined 2.6% so far this month.

PSU banks soar on stake sale buzz

• Shares of state-owned lenders Central Bank of India and Indian Overseas Bank soared 20% on Monday, after reports suggested that the government selected the two banks for divestment.
• The government will reportedly divest 51% of its stake in each of these banks in the first phase. Investor interest was also high in other PSU banks such as SBI (+1.5%), Bank of India  (+4.6%) and Bank of Baroda (+2.5%). 

Guj Alkalies posts jump in profit

• Gujarat Alkalies and Chemicals, which is one of the biggest manufacturers of caustic soda, reported strong profit growth in Q4. Its consolidated net profit soared two-fold to ₹34.6 crore from ₹11.4 crore in March 2020. 
• The profit growth was driven by an 8% rise in revenue from operations and lower tax expense. Shares of Gujarat Alkalies and Chemicals were down 0.1% today. 

Gold prices snap losing streak

• Gold prices rose by 6% on Monday as the US treasury yield eased to its lowest since February 2021. After the US central bank said that it would take at least two rate hikes by 2023, investors believe that the inflation won’t be allowed to spiral out of control.
• Hence, they have been buying treasury bonds and retreating their inflation bets. Last week, gold suffered its worst weekly losses since March 2020. Gold prices have fallen by around 5% in India this month.

Closing bell

Despite negative cues from the Asian indices, Indian markets witnessed a strong recovery today. Most of the Adani Group stocks rose and helped in improving overall sentiments. Even the Nifty Midcap and Smallcap indices outperformed the benchmark Nifty50. There are no major domestic data releases this week, and the market movements are expected to keenly track institutional equity flows. Last week's correction could bring back investors who were on the sidelines and waiting for prices to drop.

Good to know

What is net asset value in mutual funds?
The net asset value (NAV) refers to the market value of units under a specific mutual fund scheme. It is calculated by dividing the assets under management with the total number of units. For example, if the market value of the total assets under management is ₹10 crore and there are 1 crore units in the mutual fund scheme, the NAV per unit will be ₹10. The NAV of a mutual fund scheme rises or falls on a daily basis depending on the performance of its underlying assets. 

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Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.