Rally extends

Nifty50: 16,340 ▲ 62 (+0.3%)
Sensex: 54,767 ▲ 246 (+0.4%)

Namaste people,
Some bad news today. Inflation has hit the 'ghar ka budget'. Indians are now saving less and working more to meet expenses, per a recently released industry report. 76% urban consumers said inflation has impacted their big life plans like children's education and retirement savings. However, on a positive note, Bharat is still more optimistic as compared to the rest of the world. 

Much like the Indian bourses. Though the bears struck early Tuesday, the bulls rebounded to score a hat-trick.

• Markets extended winning run for the third straight day supported by positive cues from international indices.
• In all, 29 of the Nifty50 stocks closed in the green.

Among the Nifty sectoral indices, Realty (+2.5%) and PSU Bank (+2.2%) saw the most gains. Whereas, Media (-0.3%) and Pharma (-0.2%) indices were top losers. 

What’s trending

⭐ All Revved up🚗🚙

MARUTI (NSE): 8,708 ▲ 3.9 (+0.04%) , M&M (NSE): 1,185 ▲ 21 (+1.8%)

Auto companies have their jobs cut out. They are sitting pretty on an order book of over 6.5 lakh units, nearly 2-2.5 times more than the monthly average sales. Blame it on a combination of fresh demand and the overhang from 2021’s semiconductor shortage. Indian Carmakers  Maruti Suzuki alone has received bookings for over 3.2 lakh units. 

⭐ BIG deal for EV Trucks 🚚

TINDIA (NSE): 2,234 ▲ 219 (+10.8%)

Murugappa Group is venturing into electric trucks next. Even as it builds its 3-wheeler EV portfolio, its group company, Tube Investments of India (TII) has acquired a 65% stake in electric heavy commercial vehicle startup lPLTech Electric (IPLT). The all-cash deal is valued at ₹246 crore. The acquisition will not only give TII a first mover advantage in the electric heavy commercial vehicle  segment but also expand its revenue streams. 

⭐Polycab profit buzzes and sparks🔌

POLYCAB (NSE): 2,245 ▲ 91 (+4.2%)

Wires and cables manufacturer Polycab India posted a 202% year-on-year (YoY) rise in net profits to ₹222.5 crore. The company Revenues rose 48% YoY to ₹2,736 crore led by calibrated price hikes and a strong performance across B2B and B2C categories. The company's wires and cables business grew by 48% YoY. The company’s stock was up 4% in the day’s trade.

⭐ Meghmani Finechem’s new plant 🏭

MFL (NSE): 1,608 ▲ 132 (+8.9%)

The speciality chemical maker has set up a CPVC resin plant at Dahej in Gujarat. The facility has a production capacity of 30,000 tonnes per annum, and is the largest of its kind in India. This resin is used in manufacturing CPVC pipes and fittings. India’s CPVC resin demand is around 140,000 tonnes per annum, which is expected to grow by around 13% CAGR over the next five years.

⭐ Apple to slow hiring 😐

After tech giants Microsoft and Google, now Apple reportedly plans to slow hiring and spending growth next year in some divisions. The company blamed global macroeconomic conditions. Last week, Microsoft had announced a lay-off of 1% of its 180,000-strong workforce. Google also has informed staff about a hiring slowdown, while Twitter and Tesla have laid off employees.

In Focus

Realty stocks scale new heights

Home sales may be slowing down in the monsoons (as they always do) but realty stocks seem to have turned investor darlings. The Nifty Realty index is up by over 13%, so far in July. What’s driving investors' sentiments towards the realty sector. Here are the complete details:   

One of the key trigger points is the sharp bounce back in the financial performance. Recently, Mumbai-based Oberoi Realty (+4.2%) reported revenue of ₹934 crore, up 217% year-on-year, for the June quarter. Similarly, Macrotech Developers (Lodha) (+2.5%) reported pre-sales of ₹2,814 crore, a rise of 194%. 

While the upbeat sales numbers compare against poor sales during the second-wave of the pandemic, there is a lot more going for the sector. Factors such as pickup in economic activity, growing income levels and still-favourable home loan rates are all being seen as positives for real estate. 

Recently, L&T Realty announced plans to jointly develop projects worth ₹8,000 crore in the Mumbai region.

 Operationally, a fall in commodity prices also augers well for realtors.But, rising inflation and interest rates could play party poopers.

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Good to know

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