Nifty50: 18,089 ▼ 57 (-0.3%)
Sensex: 61,193 ▼ 161 (-0.2%)
Dear reader,
Today is World Press Freedom Day! A day that reminds us of the vital role a free press plays in shaping societies. It also reminds governments of their duty to respect and uphold the right to freedom of expression.
As we celebrate press freedom, let's raise a toast to the pen that writes the truth, to the camera that captures reality, and to the voices that keep us informed!
Speaking of being informed, here’s a look at how the markets fared today.
- Markets slip into red, close below 18,100.
- In all, 31 of the Nifty50 stocks closed in the red.
- India's Services PMI was better than expected; rose to 62 in April.
Among the Nifty sectoral indices, FMCG (+0.7%) and Realty (+0.2%) were the top gainers, while IT (-1.0%) and Metal (-0.9%) were the top losers.
| Top gainers | Today's change |
| HUL | 2,485 ▲ 33 (+1.3%) |
| Asian Paints | 2,930 ▲ 30 (+1.0%) |
| Tata Motors | 544 ▲ 14 (+2.7%) |
| Top losers | Today's change |
| Adani Enterprises | 1,835 ▼ 84 (-4.4%) |
| ONGC | 161 ▼ 3.2 (-1.9) |
| Adani Ports | 668 ▼ 13 (-1.9) |
What’s trending
⭐ Airline stocks rally
Shares of major airline companies, including InterGlobe Aviation (+4.7%) and SpiceJet (+1.40%) were up today. This comes after Go First airlines filed for insolvency proceedings. Experts believe existing players could gain market share following the grounding of Go First aircraft. In March 2023, market share of Go First airlines stood at 6.9%.
⭐ Adani Wilmar faces tough quarter
Shares of Adani Wilmar were down 4.5% today after announcing its March quarter earnings. The company’s consolidated profit after tax (PAT) slumped 60% YoY to ₹93.6 crore, while revenue declined by 7% to ₹13,873 crores. This is said to be due to the fall in prices of edible oil.
⭐ MRF declares dividend
MRF reported a 106% YoY increase in consolidated net profit to ₹340 crore in Q4FY23, while their revenue from operations grew by over 10% YoY to ₹5,841 crore. The company also declared a final dividend of ₹169 per share for its shareholders.
⭐ Strides Pharma inks new partnership
Strides Pharma (+0.4%) announced a new partnership with Orbicular Pharmaceutical to jointly develop a range of nasal sprays slated for global launch. Both companies aim to commercialise four nasal sprays. According to IQVIA, the global market size of these sprays is over $400 million.
In Focus
Restaurant stocks gain traction
Shares of major quick-service restaurant (QSR) players are witnessing steady gains in recent months. Since April 2023, companies such as Jubilant FoodWorks, Sapphire Foods, Devyani International and Westlife have witnessed gains in the range of 4% to 19%. What are the key reasons behind this rally? Let’s find out.
Inflation easing
As per experts, the recent fall in domestic inflation could benefit QSR players in the medium to long term. In March 2023, inflation in India eased to a two-year low of 5.66%. This steady decline in inflation is expected to lower raw material prices, which will benefit QSR players.
In the previous quarter, high prices of agricultural commodities and dairy products had eroded margins and profitability for these companies. In addition, tepid discretionary spending has been another cause of concern for the QSR industry.
However, if inflation cools further in the second half of the year, it could revive consumer demand. According to the RBI's forecast, inflation is expected to ease to 5.2% in FY24.
New store additions
Despite margin pressure, QSR companies have been aggressive in new store additions. As per reports, around 2,300 stores are expected to be added with an estimated capital expenditure of ₹5,800 crore over the next two years, driven by rising per-capita GDP and penetration in smaller towns.
Supported by the above factors, QSR companies are gaining strong traction among investors. But will their Q4 results live up to expectations? We will have to wait and watch.
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Phrase of the day
Going Long
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