'Fried' day

Nifty50: 17,171 ▼ 220 (-1.2%)
Sensex: 57,197 ▼ 714 (-1.2%)

Hey Upstox Fam!

The markets went on a roller-coaster ride this week, plunging and rising before going down again. While this might just be another off day at the exchange, things are more permanent on the climate front. If today’s Google doodle wasn’t alarming enough, a step out in the sun might do the trick. So planeteers, take a hint from the EV sector, and find a way to do your bit.

• Markets snapped their two-day winning streak to close the topsy-turvy week on a low.
• Global sentiment soured after the US Fed hinted at increasing rates in the next month. 
• In all, 42 of the Nifty50 stocks closed in the red.
• Interestingly, this week markets opened and closed nearly at the same level, indicating indecision.

All the Nifty sectoral indices closed in the red, with Bank (-2.1%) and PSU Bank (-2.1%) being top losers.

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What’s trending

⭐Adani Ports’ making waves 🌊

Adani Ports (+2.7%) will acquire a 100% stake in Ocean Sparkle, a marine service provider. Through its harbour services subsidiary, Adani Ports will seal this deal for an enterprise valuation of ₹1,700 crore. Ocean Sparkle’s offerings include towage, pilotage, and dredging. 

⭐TVS Motor is rippin’ it up 🏍 

On the British PM’s India visit, TVS Motor (-1.6%) said it will invest an additional £100 million (nearly ₹1,000 crore) in UK-based Norton Motorcycles. The investment will be used to create products for the global market. The company had acquired the iconic British motorcycle brand back in April 2020.

⭐ Vedanta woos investors in Sterlite Tech📶 

Sterlite Technologies (STL) shares closed 13% higher as its parent Vedanta Group looks to divest its stake in the former. It will offer a 25% stake in each of STL’s three businesses—optical fibre manufacturing, telecom network services and software services.

⭐Cyient earnings impress👍

Technology firm Cyient rose over 8% after it reported a 17% QoQ growth in net profit. This was led by a strong performance in the company’s services and design-led manufacturing businesses.

⭐Rallis India plummets 👎

Shares of Rallis India dipped 10% after it reported a consolidated net loss of ₹14 crore in Q4 owing to higher raw material costs.

⭐Apple’s green bite🍏

Apple announced its partnership with a Pune-based NGO to conserve a 2,400 hectare mangrove ecosystem in Maharashtra. The company has given an undisclosed grant to the NGO for the project.

⭐2 minute Maggi in 10 minutes, courtesy Zomato

Braving the memes, Zomato has begun its 10-minute delivery in parts of Gurugram. While the jury is still out, the company has begun delivery of popular items like biryani, poha, coffee, tea, and even instant noodles.

In Focus

Fed blinks, market sinks

Indian markets played ‘follow the leader’ today, crashing like their global counterparts after the US Fed Chairman Jerome Powell signalled a possible 50 basis point rate hike in the upcoming meeting on 3-4 May.

This caused major US indices to tumble by more than 1% in Thursday’s trading session.

The US central bank is expected to increase the pace of interest rate hikes to bring down inflation in the country, which has accelerated to 8.5% in March 2022, the highest level since December 1981.

Why did Indian markets fall?

A rate hike in the US makes it an attractive investment destination. FIIs (videshi investors with bags of money) typically pull out of equities in emerging markets like India and invest in US bonds. This results in dollars flowing out and the rupee becoming weaker. 

So now you know why India’s markets tanked.

IPO corner

The government is reportedly planning to trim the size of LIC IPO to ₹21,000 crore. It was earlier looking to, reportedly, raise to around ₹60,000 crore by offloading 5% of its stake in the life insurer. According to reports, the government will also include the greenshoe option of ₹9,000 crore in the IPO. Simply put, more shares of LIC may be offered, if there is higher demand. 

Good to know

What is greenshoe option?

In the context of IPOs, a greenshoe option is the option to offer extra shares over and above the size of the IPO. It is exercised if public demand for an IPO exceeds expectations. It is legally referred to as the "overallotment option" as extra shares are set aside in addition to shares originally offered. The greenshoe shares can be purchased at the IPO offer price.

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