Nifty50: 16,953 ▼ 218(-1.2%)
Sensex: 56,579 ▼ 617 (-1.0%)
Namaste Upstox Fam!
We’ve been listening to 'Free Fallin' on loop today. What is your earworm on this manic Monday when markets are looking like a badly built Jenga tower?
Too rattled for music? Well, you should be! Fact is, markets across the world are down. It started with a sharp (over 2.5%) decline in major US indices on Friday. This cascaded down to the Asian and European markets, which traded in the red today. And the decline this time is not just attributed to the usual suspects. A new worry is plaguing investors: a slowdown in sales growth. Even in India, early data for the March quarter numbers suggest slowing sales growth.
- Fears of a broader lockdown in China hurt global equity markets and prices of key commodities, such as crude oil (-5%) and copper (-3%).
- Indian markets mimicked negative global sentiments and extended the fall seen on Friday.
- In all, 42 of the Nifty50 stocks closed in the red.
Among the Nifty sectoral indices, Bank (+0.1%) saw meagre gain, while Realty (-3.7%) and Metal (-2.8%) witnessed heavy losses.
Did you know?
You can now place Good-Till-Triggered (GTT) orders on the new Upstox app. To know more about GTT orders, click here.
| Top gainers | Today's change |
| Bajaj-Auto | ▲ 2.0% |
| HDFC Bank | ▲ 1.0% |
| ICICI Bank | ▲ 0.9% |
| Top losers | Today's change |
| Coal India | ▼ 6.5% |
| BPCL | ▼ 6.0% |
| TATA Steel | ▼ 4.2% |
For more updates on F&O, click here.
What’s trending
⭐Troubled Future? 🛒
Despite a hard-fought battle, Reliance Industries called off its deal to buy Future Retail after the lenders to the latter rejected the proposal. Most of the Future Group stocks hit the lower circuit post the announcement. Reliance had first agreed to buy Future Group’s assets for ₹25,000 crore in August 2020.
⭐Govt pulls BPCL off the table? 🛢
BPCL shares slipped 6% after Vedanta Group’s Chairman, Anil Agarwal, said the government has withdrawn the offer to divest the state-owned company. The government had earlier planned to sell its entire 53% stake in BPCL to private players in 2021-22, but this was later put off to 2022-23. Vedanta Group was one of the major suitors.
⭐HDFC Bank’s dividend sweetener 🏦
HDFC Bank’s board has recommended a dividend of ₹15.5 per equity share, its highest in the last 11 years. This could come as a relief to shareholders of the merger-bound bank whose share prices have seen sharp volatility of late.
⭐Borosil Renewables cuts a glass deal 🪟
Solar glass maker Borosil Renewables will buy a 100% stake in European solar glass companies GMB and Interfloat Corporation. Borosil will buy GMB for €24.9 million, while it will pay Interfloat €5.0 million in cash and €22.0 million in shares.
⭐ Cyient’s big buy💰
Cyient is set to acquire Finland-based Citec for €94 million (about ₹773 crore). This acquisition is expected to expand Cyient’s footprint in the European region and increase its focus on the clean-energy segment.
⭐ Musk trends on Twitter
Elon Musk could be on the verge of closing a $43 billion acquisition offer for Twitter, agencies reported late Monday evening. This development comes days after Elon Musk bought a 9.2% stake in Twitter and the board responded with a poison pill plan to thwart his “hostile takeover.’ The company began negotiations with Elon Musk after he wooed many of the firm’s shareholders with financing details on his acquisition offer, as per media reports.
In Focus
Palm (oil) off your hands?
Indonesia’s ban on palm oil exports has fuelled inflation fears in India. The island nation has decided to ban palm oil exports to protect its domestic palm oil prices.
Palm oil is widely used by the FMCG companies in making products ranging from biscuits and chocolates to soaps and even cosmetics. The export ban, starting from April 28, could lead to a jump in palm oil price in India, resulting in high raw material costs for companies like Hindustan Unilever, Britannia and Godrej Consumer.
Palm oil has a 40% share in the total edible oil market in India. Hence, the latest export ban could lead to a rise in prices of edible oils in general and accelerate consumer price inflation in India. Meanwhile, domestic companies operating in the edible oil markets such as Adani Wilmar (5.0%) and Godrej Agrovet (1.8%) could benefit from higher oil prices in the near term.
IPO corner
The IPO party is gradually gathering pace again. Two companies – Campus Activewear and Rainbow Children’s Medicare – will launch their IPOs on 26 April 2022 and 27 April 2022, respectively. Click here to pre-apply for the public issue of Campus on Upstox.
Good to know
What is a share swap?
Share swap is a kind of barter transaction that usually takes place during an acquisition or merger. In such transactions, instead of cash, shares are used as currency to make payments. The acquiring company gives some of its shares to the shareholders of the company being acquired. To make the deal fair, each company’s shares are accurately valued and the final swap ratio is set.
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