Nifty50: 17,577 ▲ 86 (+0.5%)
Sensex: 59,031 ▲ 257 (+0.4%)
Hola, people!
What would it take to see the markets go up and give you a handsome return? Maybe time and patience. But, when a monkey snatched a man’s glasses and climbed the wall, all it took was two packets of mango juice to give back the glasses to the owner.
Anyway, onto the markets now, which closed higher after two days.
- Benchmark indices reversed early losses to close higher after a volatile trading session.
- In all, 42 of the Nifty50 stocks closed in the green.
- The euro fell to a 20-year low against the dollar, as Europe’s energy crisis deepened.
Among the Nifty sectoral indices, PSU Bank (+2.3%) and Auto (+1.8%) were the top gainers, while IT (-1.7%) was the sole loser.
| Top gainers | Today's change |
| M&M | 1,277 ▲ 50 (+4.1%) |
| Eicher Motors | 3,470 ▲ 106 (+3.1%) |
| Bajaj Finserv | 16,350 ▲ 478 (+3.0%) |
| Top losers | Today's change |
| Infosys | 1,548 ▼ 27 (-1.7%) |
| TCS | 3,301 ▼ 53 (-1.5%) |
| Divi's Lab | 3,533 ▼ 47 (-1.3%) |
What’s trending
⭐ Multiplex stocks face headwinds
PVR (NSE): 1,836 ▲ 44 (+2.4%), INOXLEISUR (NSE): 513 ▲ 14 (+3.0%)
Shares of PVR and Inox Leisure have plunged nearly 20% from their 52-week highs in August. According to industry experts, the fall in share prices can be partially attributed to high ticket prices, and even social media calls to boycott certain movies. Poor box office collections have also dampened investor sentiments.
⭐ RBL bank to raise funds
RBLBANK (NSE): 104 ▲ 5.8 (+5.9%); KLBRENG-B (BSE): 57 ▲ 2.7 (+4.9%)
The board of RBL Bank has approved fundraising of up to ₹3,000 crore through issuance of debt securities. In another development, the company offloaded additional shares in Kilburn Engineering Limited. The bank has sold over 12% stake in Kilburn since 17 May 2022.
⭐ Sterling and Wilson bags big order
SWSOLAR (NSE): 293 ▲ 12 (+4.3%)
Renewable energy company Sterling and Wilson said it has secured a big order from National Thermal Power Company (NTPC). The contract is worth ₹2,200 crore and involves setting up the proposed 1,570 megawatt solar plant of NTPC Renewable Energy in Gujarat. The contract also includes operations and maintenance for three years.
⭐ Lemon Tree signs new hotel project
LEMONTREE (NSE): 68 ▲ 1.1 (+1.6%)
New Delhi-based hotel chain Lemon Tree Hotels has signed an agreement for a 65-room hotel in Karnataka. The company expects the property to be operational by May 2023. The new property will be managed by a subsidiary of Lemon Tree Hotels.
⭐ Crude oil prices rise again
Brent crude oil prices in the international market rose above $97 on Monday amid tight supply concerns. Oil prices edged higher by 1.5% after Saudi Arabia’s energy minister said OPEC countries are ready to cut oil production to address the recent fall, which was mainly due to inflation concerns and weak demand.
In Focus
Auto ancillary firms in top gear
Did you know? The car that you drive has nearly 30,000 different parts. Car makers are dependent on auto ancillary companies for automotive components.
In FY22, the auto component industry, which includes companies such as Motherson Sumi, Sona BLW Precision, and Bosch among others, reported a 23% year-on-year growth in revenue to ₹4.2 lakh crore. What’s driving this growth? Let’s explore.
The industry reported substantial growth, mainly due to a 20-30% increase in the production of passenger and commercial vehicles in FY22. Further, easing of supply-chain disruptions and robust demand for vehicles helped drive the auto component volumes above pre-pandemic levels.
Furthermore, industry body Automotive Component Manufacturers Association (ACMA), which represents over 850 manufacturers, expects double-digit sales growth in the current fiscal year.
The increased focus on localisation of auto components along with the government’s production-linked incentive (PLI) scheme has helped facilitate the creation of a robust value chain of auto components in India. Further, newer growth drivers like electric mobility will support the next phase of growth.
However, the industry also faces some concerns like it's over-dependence on the auto industry. If the auto industry faces some challenges like lower sales growth, then it will directly impact the profitability of auto ancillary companies.
Nevertheless, the industry seems to be in cruise mode right now.
IPO corner
India's largest airport services aggregator platform, Dreamfolks Services, is all set to open its public issue on 24 August. The price band for the ₹562 crore IPO is ₹308 to ₹326 per share. The IPO is entirely an offer for sale, with the promoters selling up to 1.72 crore equity shares with a face value of ₹2 each.
Click here to pre-apply for the IPO on Upstox.
Good to know
What is the Jackson Hole Symposium?
The Jackson Hole Economic Policy Symposium is organised by the Federal Reserve Bank of Kansas City every year in the month of August. In this event, leading economists, central bankers and policymakers come together to discuss long-term policy issues. The event takes place in Jackson Hole Valley, Wyoming, and usually runs for three days. This year’s event begins on Thursday, 25 August.
Investors will closely monitor the speech of the Fed Chairman Jerome Powell on Friday, for further signals on rate hikes. The US government will also release the key inflation data for the month of July on the same day.
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