Markets remain range bound

Nifty50: 17,624 ▲ 24 (+0.1%)
Sensex: 59,846 ▲ 13 (+0.02%)

Dear readers,

Do you know what today is? It’s National Siblings Day! Yup, today is the perfect day to celebrate those people who share half of your genetic makeup and all your childhood traumas. Whether they were your best friend or your worst enemy growing up, siblings are the people who know you better than anyone else (except maybe your therapist). 

So, give your brother or sister a call, reminisce about the good old days, and maybe even forgive them for that one time they stole your favourite toy. Much like siblings, the market and investors share a strong bond too. On that note, let‘s look at how the markets performed today.

• The market continues to remain in green.
• Out of the Nifty50 stocks, 31 stocks closed in green.
• Markets gain for sixth straight session.

Among the Nifty sectoral indices, Realty (+4.2%) and Auto (+1.1%) were the top gainers, while PSU Bank (-0.6%) and Bank (-0.5%) were the top losers.

What’s trending

⭐ Titan reports robust Q4 growth

The watchmaker (+1.1%) reported double-digit growth across all key businesses in Q4FY23, resulting in a 25% YoY increase in revenues. The company’s Jewellery segment clocked 23% YoY growth, led by high demand and an increase in high-value purchases amid the wedding season. Meanwhile, the company’s Watches & Wearables and Eyewear segments saw a 41% and 22% YoY growth, respectively.

⭐ L&T wins new order

Larsen & Toubro (L&T) shares were up over 1% today. This comes after the company’s hydrocarbon business secured a new order from a leading  fertiliser company. The new order is in the range of ₹1,000 to ₹2,500 crore and involves setting up of a new plant in Rajasthan.   

⭐ Bajaj Auto takes over Triumph operations

UK-based Triumph Motorcycles has successfully completed the transfer of its sales and marketing operations in India to Bajaj Auto (0.6%). As per the agreement, Bajaj Auto will manage the existing network of Triumph dealerships and expand the dealer network to over 120 cities in the next two years.

⭐ Gold loses shine

Prices of the yellow metal witnessed profit booking today as the US dollar extended its relief rally. MCX gold futures opened lower at ₹60,402 per 10 gm, hitting an intraday low of ₹59,958. Gold prices rebounded and regained the ₹60,000 mark but remained down by around 0.6% in the international market.

In Focus

Sugar stocks in a sweet spot

Shares of Shree Renuka Sugars, Balrampur Chini and Dwarikesh Sugar rose by 3 to 5 % so far this month. This comes amidst rise in ex-mill sugar prices across the country in the last one month. Why are sugar prices going up? Let's find out.

Why are prices rising? 

In the first half of the 2022-23 marketing year, sugar production declined by 3% YoY to 299.6 lakh tonnes. This has led to an increase in sugar prices by ₹150-200 per quintal in the last one month. 

Experts believe that last year's prolonged monsoon affected the overall sugarcane crop. As a result, sugar production in key states like Maharashtra decreased to 104.2 lakh tonnes from 118.8 lakh tonnes during the ongoing marketing year. The sugar industry follows an October to September marketing year.  

Demand scenario 

With production declining, demand for sugar from bulk consumers such as confectionery and cola makers has increased ahead of the summer season, pushing up sugar prices.

The rise in prices is positive for the industry, which has been demanding a revision in minimum sale price (MSP). Currently, ex-mill sugar prices are ₹33 per kg, which is in-line with the industry’s demand.  Meanwhile, for consumers, the prices are expected to remain stable due to government intervention.

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Phrase of the day

Going Long

When you buy a stock, futures or an option contract with the hope that its price will rise, it is called going ‘long’.  When should you go long, find out from this chapter What does going Long mean? 

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