NIFTY50: 19,632▲ 61 (+0.3%)
SENSEX: 65,995▲ 149 (+0.2%)
Hello, friends!
In a freak incident, a bear being transported to UAE escaped its crate in the cargo hold of an Iraqi Airways plane at Dubai International Airport. The airline brought in a specialist team to sedate the bear and return it back to the safety of its crate. Quite an adventure for the bear, indeed! Meanwhile, the markets, too, had an adventurous day and narrowly escaped the clutches of bears, as they closed in the green. More on that later.
- Benchmark indices reversed early losses, as last hour buying lifted the NIFTY above 19,600
- In all, 32 of the NIFTY50 stocks closed in the green
- Chinese economy slips into deflation as consumer prices dropped by 0.3% YoY in July
Among the NIFTY sectoral indices, Media (+2.1%) and Metal (+2.0%) were the top gainers, while Realty (-1.2%) and Financial Services (-0.2%) were the top losers.
| Top gainers | Today's change |
| Dr Reddy’s | 5,879 ▲ 221 (+3.9%) |
| JSW Steel | 826 ▲ 25 (+3.2%) |
| Hindalco | 468 ▲ 13 (+2.9%) |
| Top losers | Today's change |
| Divi’s Lab | 3,743 ▼ 102 (-2.6%) |
| Apollo Hospitals | 4,975 ▼ 48 (-0.9%) |
| Maruti Suzuki | 9,468 ▼ 74 (-0.7%) |
What’s trending
⭐ Eicher Motors partners with Amazon
Eicher Motors through its joint venture company, VE Commercial Vehicles, plans to deploy 1,000 electric trucks in the next five years for the electrification of Amazon's delivery operations in India. VE Commercial Vehicles is a joint venture between the Volvo Group and Eicher Motors. In the initial phase of the partnership, 50 electric trucks will be deployed into Amazon’s delivery operations across major cities.
⭐ Bharat Forge posts strong Q1 results
Auto components maker Bharat Forge reported a 33.2% YoY rise in net profit at ₹213.73 crore for the June quarter. Further, its revenue from operations stood at ₹3,877.2 crore, up 36% from ₹2,851.4 crore in the year-ago period. The board also approved a further investment of up to ₹150 crore in its EV subsidiary Kalyani Powertrain (KPTL) in one or more tranches.
⭐ IRCTC reports mixed Q1 results
Railway catering and ticketing service provider, IRCTC has reported mixed results for the June quarter. Its revenue from operations rose over 17% YoY to ₹1,001 crore, while net profit saw decline of 5.4% YoY to ₹232 crore. Segment-wise, the revenue from catering and packaged water business jumped 35% and 10%, respectively, on an yearly basis, while the ticketing business saw a 4% revenue fall.
⭐ IdeaForge slumps after weak Q1 results
Shares of IdeaForge Technology dropped more than 6.4% on August 9, after the drone maker reported weak earnings for the June quarter. Its net profit dropped 54.3% year-on-year (YoY) to ₹18.8 crore and revenue from operations declined 2.2% to ₹97 crore.
In Focus
Weak Chinese economy slams global stock market
Global markets have slipped over the last few days, with major global indices including the Nasdaq, Hang Seng and some European markets witnessing fall of nearly 1% with rise in volatility. Markets have turned defensive after China reported a double-digit decline in its trade data, while its consumer prices fell into negative territory. Why does this matter? Let's dig in.
Sluggish trade data
To start with, China reported a double-digit fall in its imports and exports trade. Its imports contracted by 12.4% YoY in July, indicating weak domestic demand. Meanwhile, its exports slumped to a five-month low of $281 billion, down 14.5% YoY because of a demand slowdown in the global markets.
Following this announcement, international crude oil prices declined more than 2% in the previous trading session. A contraction in import/export data shows rising demand concerns in China, which is one of the largest oil importers in the world.
Negative consumer and producer price inflation
Driven by weakened demand, the Chinese economy reported a drop in consumer price inflation (CPI) to -0.3% in July. It was the first year-on-year decline since February 2021. Meanwhile, the producer price index (PPI) fell for the 10th consecutive month, down 4.4% from a year ago. A fall in these key indicators into negative territory shows that the Chinese economy has slipped into deflation.
Deflation refers to sustained decrease in the overall prices of goods and services across the economy. Such a situation is not good for the country as it signals a downturn in an economy, leading to a recession or depression. Deflation can occur for various reasons. In China’s case, reduced consumer demand and economic slowdown are the key factors.
What the Chinese govt is doing and how investors have responded
To counter the economic slowdown, the Chinese government has unveiled multiple stimulus measures to boost demand for houses and other products. But these policies have so far failed to impress investors, as the scope of these policies is largely limited to a few sectors.
Chinese authorities believe the policy measures will help the economy recover faster in the second half of the year. Will this happen? Only time will tell.
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