Nifty50: 18,147 ▲ 82 (+0.4%)
Sensex: 61,354 ▲ 242 (+0.4%)
Dear readers,
We have a new reason to fear our high school report cards. In a bizarre incident, a man claims his cousin in Bengaluru was rejected by a landlord because his Class 12 marks weren't good enough. His now viral tweet explains that while he got 76% in his 12th grade, the owner was expecting ‘at least 90%’. Looks like your report card follows you around forever, folks. What a downer!
The markets on the other hand, thankfully, are much more upbeat. Let’s take a look.
- Markets continue to be in green, close above 18,100.
- In all, 29 of the Nifty50 stocks closed in the green.
- Eurozone inflation increases to 7% in April 2023 from 6.9% in the previous month.
Among the Nifty sectoral indices, Metal (+1.4%) and Oil & Gas (+1.1%) were the top gainers, while Pharma (-0.1%) and FMCG (-0.1%) were the top losers.
| Top gainers | Today's change |
| ONGC | 164 ▲ 5.3 (+3.3%) |
| Tech Mahindra | 1,053 ▲ 29 (+2.8%) |
| HDFC Life | 544 ▲ 14 (+2.7%) |
| Top losers | Today's change |
| Hero Motocorp | 2,495 ▼ 62 (-2.4%) |
| Sun Pharma | 972 ▼ 15 (-1.5%) |
| Ultratech Cement | 7,458 ▼ 98 (-1.3%) |
What’s trending
⭐ Varun Beverages’ profit rises
Varun Beverages (-1.4%) reported revenue growth of over 37% YoY to ₹3,892 crore for the quarter ended March 2023. Robust volume growth and higher net realisation supported the revenue growth. Meanwhile, net profit grew 61.8% YoY to ₹438 crore. The company’s board has declared a final dividend of ₹1 per share and announced a 1:2 stock split, wherein existing one equity share will be split into two equity shares.
⭐ Coal India’s production rises in April
Shares of Coal India rose by 1.3% intraday after reporting robust production volume in April 2023. The total production rose 7.7% to 57.6 million tonnes (MT). The company said most of its subsidiaries recorded higher production during the month. Meanwhile, supplies to coal-fired power plants were at 50.6 MT, up 1.3 MT.
⭐ NBCC bags redevelopment order
The infrastructure company has secured a new order worth ₹749 crore for a redevelopment project. Following this announcement, the company's shares were up 1.7% intraday. The new order comes from the Ministry of Housing and Urban Affairs.
⭐ Ambuja Cement’s Q4 revenue rises
Shares of the cement manufacturer fell 0.8% after posting lacklustre Q4 performance figures. The company’s standalone profit rose to ₹502 crore in Q42023, compared to ₹494 crore in the same quarter last year (up just 1.6% YoY). However, its net revenue grew by 8.3% YoY to ₹4,256 crore. The company said it remains debt free and also announced a dividend of ₹2.50 per share.
In Focus
Metal stocks rally
The Nifty Metal index witnessed strong traction, gaining 1.4% intraday. Since March 2023, the metal index is up over 11%. Most metal stocks have shown a smart recovery after an initial slump at the start of the year. What are the key factors behind this rally? Let’s find out.
Demand scenario
Improving macroeconomic conditions in China, a weaker US dollar and reduced recessionary fears are some of the key factors behind the recent rally in metal stocks. At the same time, falling raw material prices (especially coking coal prices, which are at their lowest since August 2022) have also been beneficial for the industry.
Meanwhile, in the domestic market, the demand is expected to grow at over 11% in the ongoing fiscal year, aided by key end-user industries, such as infrastructure, construction and automobiles, which are showing strong demand trends.
This rising demand coupled with recent price hikes by manufacturers could boost margins and profitability of metal companies.
Export duty cut
Furthermore, metal companies are also benefiting from cuts in export duties. In November 2022, the government completely waived off export duties on iron ore lumps and fines with 'less than 58% Fe'.
As a result, a combination of these factors is bringing investors back to metal stocks. But will this rally continue? We will have to wait and watch.
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.