Morning Update for 19 April 2022

Indices at previous closing

Nifty50: 17,173 ▼302 (-1.7%)

Sensex: 57,166 ▼1,172 (-2.0%)

Nifty Bank: 36,729 ▼734 (-1.9%)

For more updates on F&O, click here.

Cheers for Varun Beverages

The summer gods seem to be smiling down on Varun Beverages (VBL), one of PepsiCo’s largest franchisees. With temperatures soaring across the country, the demand for ice creams and soft drinks has recorded a five-year high. 

After two years of tepid demand due to the pandemic, the cold beverage industry is on revival, and how! According to the VBL management, all their plants are running at full capacity. The rise in demand is due to several factors like the early onset of summer, improved power situation in villages, rise in mobility, and the revival of leisure and business travel.

Retail sales recover

The impact of the pandemic on the retail sector reverberated for a long time but companies like Arvind Fashions and Metro Brands are optimistic about their growth. According to the Retailers Association of India, retail sales in March 2022 grew by 12% as compared to the pre-pandemic level of March 2019 and by 28% as compared to March 2021.

Spending was subdued during the initial lockdowns but retail sales have recovered quickly after the third wave.

Wholesale inflation surges

Wholesale inflation or the inflation at the producer level rose to 14.55% in March, compared to 13.11% in February. March is the twelfth consecutive month when the wholesale inflation has remained in double digits.

Why should you care about inflation at the producer level? It's because a high wholesale inflation is seen as a precursor to higher consumer prices going forward, as these producers pass on the rising costs to customers.

Sectoral indices (April 18)

Global markets (at 7:30 AM today)

Fact of the day

Over 1.6 lakh new companies were registered in FY22, the highest ever in a fiscal.

Source: Moneycontrol

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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.