Bounce back

Nifty50: 16,975 ▲ 312 (+1.8%)

Sensex: 56,816 ▲  312 (+1.8%)

• Taking positive cues from international indices, Indian markets overcame yesterday’s weakness. After a gap-up opening, the markets continued to move upward.
• Out of the Nifty50 pack, 47 stocks closed higher, indicating a broad-based buying interest.
• All eyes are now on the US Fed meeting, which is scheduled tonight. The US central bank is expected to raise key rates, which could be the first interest rate hike in three years.

All the Nifty sectoral indices closed in the green today with most gains seen in Realty (+3.6%) and Metal (+2.6%).

For more updates on F&O, click here.

Here are the top stories of the day.

Dividend bounty for the govt

So far in this financial year, the government has received over ₹53,400 crore in form of dividends from state-owned companies, as per reports. The PSUs are mainly from the metal and energy sectors.  These state-owned companies’ profits have surged on the back of higher commodity prices viz. copper, steel and oil.  

The bounce back in the demand post the pandemic and the Russia-Ukraine conflict have pushed the base metal prices up by 44% year-on-year in the December quarter. Meanwhile, the dividend earned is about 7% higher than the budget estimate and almost 35% higher than last year’s receipts.

No ‘hypertension’ for Unichem Labs

After receiving an approval for its hypertension drug, shares of Mumbai-based Unichem Labs rose 4% intraday. The company manufactures and markets branded and unbranded generics globally. The company will manufacture this drug in its Ghaziabad plant.

Last month, it also received an approval for its drug which is used in treatment for migraine headaches and acute manic episodes related to bipolar disorder. Meanwhile, shares of Unichem Labs have been consolidating around ₹250 levels since the start of February 2022.

Paint-makers get their gloss back

The paint industry has been among the most hit due to the elevated crude oil prices. Crude oil derivatives account for about 50% of the total raw material costs. But now, with the Russia-Ukraine peace talks underway and a drop in demand due to the resurgence of the pandemic in China, the oil prices have dropped over 30% from their recent highs. 

Against this backdrop, the paint stocks are witnessing revival in the investor interest. Shares of paint companies have risen in the range of 5-10% over the last two weeks.

IPO Corner

According to reports, IPO-bound specialty chemical maker Aether Industries has raised ₹130 crore from four marquee investors. The company is waiting for the market regulator SEBI’s approval to launch its IPO. It had filed its draft red herring prospectus (DRHP) in December 2021 and is reportedly looking to raise ₹1,000 crore. 

Good to know

What is insider trading?

Insider trading is defined as buying or selling a company’s securities while in possession of information that is not yet out in the public. The material information may have an impact on the decision of an investor with respect to buying or selling a security. Insider trading is illegal and one could face stern penalties.

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