Volatile week ends well

Nifty50: 18,102▲+229 (+1.2%)
Sensex: 60,686▲+767(+1.2%)

The markets snapped their recent losing streak and ended in the green today. Of the Nifty50 pack, 43 stocks posted gains.

Among the Nifty sectoral indices, IT (+2.1%) and Realty (+1.6%) were top gainers. Whereas, Media (-0.1%) and PSU Bank (-0.1%) were top losers.

For more updates on F&O, click here.

Here are the top stories of the day.

Hindalco Q2 beats street estimates

Aditya Birla Group’s metals arm posted a multi-fold rise in its net profit to ₹3,417 crore. This is the highest-ever quarterly consolidated profit for Hindalco. The results surpassed street expectations of ₹2,281 crore. Meanwhile, its revenue rose by about 53% to ₹47,665 crore in the same period.

The growth was driven by the impressive performance of its arm Novelis, India aluminium and copper business. These segments benefitted from pick-up in demand, better product mix, higher volumes, and stability in operations. Shares of Hindalco closed 3.1% higher today.

Finolex Cables’ Q2 profit soars

In the September quarter, India’s largest manufacturer of electric and communications cables reported net profit of ₹149 crore, up 116% year-on-year. The strong growth in profit was aided by a 46% rise in its revenue to ₹933 crore.

While the Pune-based company witnessed a rise in volumes across categories, the cost of copper, steel, PVC, etc. also increased. The management said that the steep increase in commodity prices and supply constraints impacted the profitability to some extent. Meanwhile, shares of the company were 2.4% today and have gained about 8% so far this month..

Alkem posts robust Q2 results

The Mumbai-headquartered pharma company’s net profit rose 15% year-on-year to ₹544 crore. Similarly, the revenue also rose by about 18% to ₹2,800 crore. The growth in revenue was driven by 26% in its India business.

The management said that its India business grew by 40% in the first half of this fiscal on back of growth in acute therapies. It added that in the US business, new product launches have helped to offset significant pricing pressure in the base business. Meanwhile, shares of the company were up 0.7% today.

Closing bell

Despite the mid-week volatility, the Nifty50 rose for the second week in a row. The strength came mainly on the back of rise in the IT stocks and index-weight Reliance Industries. Meanwhile, the banks fell ahead of the inflation numbers that were announced today after the market hours. The October retail inflation stood at 4.48% compared to street estimates of 4.32%. Further, the industrial production (IIP) numbers too were weaker than estimates at 3.1%. These coupled with sharp rise in the US inflation could act as a sentiment spoiler in the next week.

Good to know

What is a stop-loss order?

A stop loss order refers to an order to buy or sell a stock when it reaches a specific price limit. This order is placed in advance. It is typically used to exit a position in an unfavourable trade and thus helps in limiting the loss. Assume that a trader buys a stock at ₹300 and places a stop loss at ₹280. The trader’s loss will be limited to ₹20 per share in case the stock starts falling. Professional traders also use a stop loss buy/sell order to enter a fresh position when price crosses a certain limit, referred to as a trigger price.

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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.