Nifty50: 16,522 ▼ 61 (-0.3%)
Sensex: 55,381 ▼ 185 (-0.3%)
Howdy, folks!
The markets put up a weak show today. On a lighter note, you might want to brush up on your video-making skills as TikTok might make a comeback. Its parent company, Bytedance, is reportedly planning to relaunch the video platform with an Indian partner.
In other news, Elon Musk has asked Tesla employees to return to office or quit. Ouch!
- Markets were volatile, taking cues from the mixed trends in the international indices.
- In all, 31 of the Nifty50 stocks closed in the red.
- Banks showed signs of recovery towards the end of the day and lent support to the overall market.
Among the Nifty sectoral indices, PSU Bank (0.7%) and Bank (+0.3%) saw the most gains, while IT (-1.4%) and Pharma (-1.2%) were the top losers.
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| Top gainers | Today's change |
| JSW Steel | ▲ 3.5% |
| Coal India | ▲ 2.0% |
| HDFC Life | ▲ 1.5% |
| Top losers | Today's change |
| Bajaj-Auto | ▼ 3.6% |
| Apollo Hospital | ▼ 3.2% |
| Hindalco | ▼ 2.8% |
For more updates on F&O, click here.
What’s trending
⭐ Tata Group scales brand summit 🏆
As per the Brand Finance India 100 ranking, Tata Group has emerged as the most valuable Indian brand. At $24 billion, its brand value witnessed a jump of 12% in FY22. Tata Group is followed by Infosys with a brand value of $12.8 billion. Meanwhile, LIC took the third spot at $11.1 billion, and Reliance came in fourth at $8.6 billion.
⭐CV sales in the fast lane 🚗
Leading commercial vehicle (CV) manufacturers have reported a significant improvement in sales in May as compared to the year ago. Ashok Leyland’s CV sales volume rose by 355% to 12,458 units, while Tata Motors reported a 188% jump to 32,818 units. Post-pandemic improvement in business sentiments, fleet utilisation levels and freight rates as well as the reopening of schools and offices, has helped revive demand.
⭐ Factory activity steadies in May 🏭
Manufacturing sector growth in India remained steady in May, as indicated by the Manufacturing Purchasing Managers' Index (PMI). The PMI figure in May stood at 54.6, virtually unchanged from the reading of 54.7 in April. Demand showed signs of resilience in May, improving in spite of rising inflation.
⭐Rain forecast promises relief 🌧
Soon you can say bye-bye to the scorching heat! The Indian Meteorological Department has predicted a normal monsoon this year. Consistent monsoons in the past four years have led to 3.3% growth in the agricultural, forestry, and fishing industries in FY21 and FY22. As over 50% of India’s agriculture is dependent on monsoons, normal rainfall could also ease food inflation.
⭐ E-scooter sales hit a speed bump 🛵
E-scooter sales ran out of charge in May, with the top eight e-scooter makers witnessing a 24% decline in sales. EV companies blame this on the semiconductor shortage. It's also possible that EV fires have spooked buyers. According to a survey conducted in April, only 2% of customers were willing to buy EVs in the next six months.
In Focus
Textile exports: Not so well-spun
Stocks of textile exporters like Welspun India (+2.3%) and Gokaldas Exports (+7.4%) spun a positive picture on Wednesday. As per the government, Indian textile exports had hit an all-time high of $44 billion in FY22. This is especially due to the shift of global outsourcing away from China, after the trade spat between the US and China. Companies have however, turned cautious about exports for the current year. Blame it on inflation.
As per the management of Gokaldas Exports, rising freight and energy costs, along with high cotton prices, may pose a challenge to the industry in the year ahead. Cotton prices have gone up to ₹1.1 lakh per candy (of 356 kg each), nearly 45% up from January 2022, according to The South India Spinners Association.
Further, rising interest rates and geo-political disturbances could impact demand from key export markets such as the US and Europe.
Nevertheless, there is a ray of hope. The arrival of a new crop in the second half of the year could help soften cotton prices. Also, global inflation might cool down a bit following a series of interest rate hikes.
IPO corner
Bucking the recent trend of subdued listings, eMudhra made a stellar debut on the stock exchanges today. Shares of the digital-signature certificate provider listed at a premium of 9% against the issue price of ₹256. However, the stock pared its gains and closed flat.
Good to know
What is PMI?
Purchasing Managers' Index or PMI is an economic indicator that indicates business conditions and demand trends in specific sectors. It is derived on the basis of monthly surveys of purchasing managers in companies across the manufacturing and services sectors. A figure above 50 denotes expansion in activity, while that below 50 denotes contraction.
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