Cooling appliances in high demand, commodities prices soar & more

Nifty50: 17,092  ▼ 114 (-0.6%)

Sensex: 57,300 ▼ 382 (-0.6%)

• The markets opened with a big gap down before a sensational recovery during the day almost filled the gap.
• 
  In all, 33 of the Nifty50 stocks closed in the red.
• The India VIX spiked more than 15% today before cooling off marginally, indicating too much fear in the market, mainly due to rising Russia-Ukraine tensions.
  

All the Nifty sectoral indices closed in the red, with Media (-3.3%) and Realty (-2.9%) being the top losers.

For more updates on F&O, click here.

Here are the top stories of the day.

Cooling appliances makers prep for high demand

The makers of air-conditioners, fans, coolers, and refrigerators are expecting demand to pick up in the upcoming summer season as the cases continue to subside in the country. The companies operating in the sector are reportedly eyeing sales to rise by 20-30% from 2019 levels. According to the management of Orient Electric, 60% of coolers expected to be sold this summer are from last year’s unsold stocks, which will affect production.

Cooling appliances sales tanked as the two Covid waves struck at the onset of summer during the last two years, leading to lockdowns. Due to inflationary headwinds, manufacturers could further hike prices, having already rolled out a round of price hikes.

Commodities prices soar as Ukraine crisis intensifies

Commodities like nickel and aluminium hit multi-year peaks driven by concerns over supply disruptions from Russia as tensions escalate. The US and the European countries threatened to impose sanctions on Russia, which is a major producer of nickel and aluminium, if it invaded Ukraine.

On the other hand, oil prices also surged amid a weak market as Brent crude hit $99 per barrel, the highest mark since September 2014. The shares of Vedanta and Hindalco have risen about 7% and 4% respectively so far this month.

Indiabulls Real Estate rises after clarification

According to reports, the Mumbai office of Indiabulls Housing Finance was raided by Enforcement Directorate (ED) officials yesterday. The company clarified that the investigation did not pertain to Indiabulls Real Estate and has no bearing on the business or operations of the company.

The stock price gained nearly 10% today after the clarification from the company, after having fallen nearly 15% yesterday.

IPO Corner

According to reports, potential investors in the LIC IPO are seeking assurance from the management that the life insurer’s interest won’t be sacrificed for meeting the government’s disinvestment target. It’s important to note here that LIC is an important buyer of shares in state-owned companies. The management and IPO bankers had to reportedly face questions about the quality of LIC’s past investments during the virtual IPO roadshow.

Good to know

What is ROI?

Return on investment (ROI) is a financial ratio used to calculate the benefits received by an investor on a potential investment. The higher the ratio, the greater is the benefit earned. For instance, assume that an investor purchases a property worth ₹1 crore. Three years later, the investor sells the property for ₹2 crore. In this case the ROI is 100%, where the investor has gained ₹1 crore on a ₹1 crore investment.

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