Bulls in sight

Nifty50: 16,013 ▲ 150 (+0.9%)

Sensex: 53,424 ▲ 581 (+1.1%)

• The markets opened with a gap down and continued to slide downwards before recovering sharply in the second half snapping its 4-day losing streak.
• In all, 37 stocks of the Nifty50 pack ended in the green.
• Brent crude touched $139 a barrel, spiking to its highest level since July 2008 before paring gains.

Among the Nifty sectoral indices, Realty (+3.2%) and Media (+2.7%) were the top gainers, while Metal (-1.4%) was the sole loser.

For more updates on F&O, click here.

Here are the top stories of the day.

Commodity inflation hits real estate

The prices of key raw materials have risen sharply, worrying real estate developers, who are finding it hard to pass on the increased costs to customers. The recent rise in crude oil prices is adding to the costs of key materials like steel, cement, aluminium, PVC and tiles, which have reportedly become 30-60% costlier in the last two years due to global supply chain constraints.

Experts believe that real estate developers may look to increase the prices of new launches in the range of 10-15% if commodity inflation continues unabated. Developers are also reportedly seeking a rationalisation of GST rates for some construction materials like steel and cement.

Sunflower oil prices skyrocket

The prices of sunflower oil have reportedly spiked in most parts of India as the Russia-Ukraine conflict intensified supply chain disruptions. The national average retail price of sunflower oil rose over 6% to ₹166.33 a litre in the last seven days, and over 11% in the last one month, according to data sourced from the Department of Consumer Affairs.

In the last fiscal, India imported 2.2 million tonnes of sunflower oil. Close to 80% of that was from Ukraine, according to data provided by the Ministry of Commerce. There have been calls to hike minimum support prices (MSP) of edible oil to boost domestic production.

OMCs staring at likely revision in fuel prices

There is likely to be a revision in the fuel prices on account of higher crude oil prices. According to sources, oil marketing companies are expected to soon start passing on the price hike to consumers.

Oil marketing companies are involved in refining and processing crude oil and producing petrol, diesel and jet fuel. 

IPO Corner

Sachin Bansal-promoted Navi Technologies is likely to file papers for a ₹4,000 crore IPO, as per media reports. Bansal, who co-founded Flipkart in 2007, holds 97% in Navi. Bansal had invested ₹4,000 crore of his own capital and is expected to retain a majority stake after the IPO. The company also plans to raise ₹15,000 crore as debt from the public market in the next two years. The public issue will reportedly consist entirely of a fresh issue of shares with no offer-for-sale component.

Good to know

What is operating profit margin?

Operating profit margin (OPM) is a performance ratio that reflects the percentage of profit a company generates from its operations before deducting taxes and interest charges. Higher OPM shows efficiency in procuring raw materials and converting them into finished products. The higher the margin, the better it is for investors. While analysing a company, it is important to compare OPMs of other companies in the same industry and see whether it is rising over a period.

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