A slow rise

Nifty50: 18,314 ▲ 17 (+0.1%)
Sensex: 62,027 ▲ 123 (+0.2%)

Hello, friends !

Unless you've been hiding under a rock, you probably know about the AI revolution sweeping the world today. Hailed as the biggest disruptor of our times, AI evokes every emotion from hope to fear. And yet, we haven't been able to quantify and put a number to this so-called "impact" of AI. Until now. 

Researchers studied a Fortune 500 company that adopted an earlier version of ChatGPT to conclude that access to the tool actually makes human productivity go up by 14%. Speaking of things going up, the markets saw a steady rise after a shaky start. Let's have a look.

• Markets opened low but regained momentum to close above 18,300
• In all, 21 of the Nifty50 stocks closed in the green
• Bank of England has raised its interest rate to 4.5% (highest since 2008)

Among the Nifty sectoral indices, Auto (+0.7%) and Bank (+0.7%) were the top gainers, while Metals (-1.8%) and Media (-1.1%) were the top losers.

What’s trending

⭐ Tata Motors’ profit zooms

Tata Motors (+0.43%) posted strong earnings for Q4FY23 today. The company reported a profit of ₹5407 crore whereas, in the same quarter last year, it reported a loss of ₹1032 crore. Revenues were up significantly at ₹1,05,932 crore, a growth of 35% YoY compared to ₹78,439 crore in Q4FY22. Pricing actions and a richer mix led to improved ASPs and higher revenue growth, according to the exchange filing. The company has announced a dividend of ₹2 per share.

⭐ Hindustan Aeronautics’ Q4 profit falls

Hindustan Aeronautics (-1.4%) reported an 8.8% drop in consolidated net profit at ₹2,831 crore in Q4FY23. Its profit stood at ₹3,105 crore in the same quarter last year. However, on the positive side its revenue from operations, meanwhile, rose 8% YoY to ₹12,494 crore from ₹11,558 crore reported in Q4FY22, and its order book position stands at ₹81,784 crore. 

⭐ Cipla Q4 profit surges

Pharmaceutical giant Cipla (-1.2%) reported a rise in profit of 45% YoY to ₹526 crore from ₹362 earned in Q4FY22. Its revenue from operations during the quarter rose 9% YoY to ₹5,739 crore. The company's "One-India" business saw a growth of 16% in the quarter across branded prescription and trade generics. The board has recommended a final dividend of ₹8.5 per share.

⭐ Polycab India posts strong Q4 results

Shares of wires and cables manufacturer Polycab India closed 4.6% higher today following better-than-expected Q4 results reported by the company. Its net profit for the March quarter grew by 31.6% YoY to ₹428 crore, compared to ₹325 crore in the same quarter last year. Its revenue from operations grew by 8.9% YoY to ₹4,323 crore. The board has recommended a dividend of ₹20 per share.

In Focus

Metals Meltdown Amidst China Concerns

Indian metal stocks have been under pressure, with a significant drop of nearly 15% in the 2023 calendar year. The rising uncertainty in China's property sector is a major factor contributing to this decline. Further, the financial woes of China's real estate behemoth, Evergrande, have sparked fears of a larger fallout.

Commodity Meltdown

One of the main reasons for this downturn is the weakness in the global economy. It has caused quite a meltdown in metals, with prices reaching multi-month lows. Nickel, aluminium, copper, and even zinc prices are plummeting, with zinc hitting a two-year low of $2,600 a tonne.

Share Price Drop

Now, what does this mean for our Indian metal companies? Well, it's not great news. Firms like Hindalco and Vedanta have felt the heat, with their share prices taking a significant hit due to this global meltdown. Today, they were among the top losers in trade, showing just how hard these companies have been hit.

Weak Chinese Inflation Data

The final piece of the puzzle is the slowdown in China's construction and infrastructure sectors. This has led to weak inflation data, with consumer inflation hitting a two-year low of 0.1% in April. It shows less demand for metals, which is a tough blow for these sectors.

Powerful buying made simple!

Markets often see sharp price movements triggered by positive news or technical patterns. In such situations, you may want to double down on certain high-conviction trades. However, having limited capital could be an obstacle in leveraging such opportunities. With Margin Trading Facility (MTF) on Upstox, you can increase your trading capacity instantly. Click here to know more about MTF.

Benefits of MTF:

🔹 Get 2X leverage on equity delivery orders

🔹 Borrow up to ₹25,00,000 at a time

🔹 Hold stocks bought via MTF for up to 365 days.

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? 

Click here to join us on Telegram for trading and investment-related videos, daily market updates, details on upcoming IPOs and more.