Bears back in action

Nifty50: 17,321 ▼ 129 (-0.7%)
Sensex: 58,909 ▼ 501 (-0.8%)

Dear Reader,

If mercury in February is anything to go by, India should brace for a scorching summer ahead. 

After 146 years, India has recorded its warmest February. The maximum temperature rose to 29.5 degrees celsius across the country, which is the highest since 1877! 

Not just the weather, but even Indian markets are making investors sweat these days. Let’s get you the highlights. 

• The markets were pulled back into the red.
• Of the Nifty50 pack, 36 stocks declined.
• Weak global cues weighed down on the sentiments.

Among the Nifty sectoral indices, Realty (+2.06%) and Oil & Gas (+0.03%) were the sole gainers, while IT (-1.2%) and Auto (-0.8%) were the top losers.

What’s trending

⭐ Adani Group shares rise    

Shares of Adani Group companies witnessed a strong traction today, with all its listed entities closing in the green. This comes after the Supreme Court ordered the setting up of a six-member committee to look into the matter. The expert panel will submit its report within two months. 

⭐ Olectra gets nod for electric truck

The electric bus maker (+5.3%) has obtained the regulatory certificate for its heavy-duty electric tipper. There is high demand for tipper trucks in the construction and infrastructure segment, according to the management. The company plans to launch different variants of the e-tipper and electric truck in the coming days. Also, the first order for 20 e-tippers is in the final stage of discussions. 

⭐ Ramco Systems share jumps 

Share of the enterprise software company (+6.6%) rose after it signed a pact with Etihad Airways Engineering to implement its aviation suites. These suites will streamline multiple operations across Etihad Airways Engineering. 

⭐ HAL gets new aircraft order 

The Union Cabinet has approved procurement of 70 HTT-40 basic trainer aircrafts from Hindustan Aeronautics (+0.7%). The total cost of procurement will be ₹6,828 crore. The new aircrafts will be inducted in the Indian Air Force and will be supplied over a period of six years.

In Focus

Road stocks on strong footing

Since the announcement of the Union Budget on 1 February, road construction companies have been in the spotlight. Shares of MEP, HG Infra, and KNR Construction are up in the range of 5% to 7%. Let’s take a look at why road construction companies are witnessing traction in a weak market. 

1. Budget focus

In the budget, the government decided to focus on the infrastructure sector to sustain economic growth. For the next financial year, it has allocated ₹1.6 lakh crore (up 15% YoY) to National Highways Authority of India (NHAI), which awards highway and road projects. This infra thrust could be beneficial for road construction companies.  

2. Awarding projects

Ahead of the election next year, the awarding of road projects is picking pace. Between December 2022 and February 2023, the NHAI has awarded  4,290 km of projects to road companies.  In comparison, 1,549 km of projects were awarded in the first eight months of the current financial year. 

3. Funding projects 

Besides the budget allocations, the NHAI is also looking to raise money to fund road projects. It is aiming to raise ₹8,000 crore by March 2023 through Invits, according to reports. ICYDK, Invits are a route through which investors can directly invest in projects and gain income. This comes after the NHAI raised ₹10,200 crore for road construction projects.

4. Toll collection  

With the economic activities reviving post the pandemic, toll collection continues to rise. In 2022, the FASTag toll collections rose 46% to ₹50,855 crore. Experts believe that this would help the companies to monetise their road projects and provide a boost to the revenue.  

With multiple factors favouring road companies, investors are flocking towards these stocks.  

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.