NIFTY50: 19,659 ▼ 118 (-0.6%)
SENSEX: 66,266 ▼ 440 (-0.6%)
Ahoy, friends!
The monsoon has been unleashing its fury across the country this month. There are reports of flooding in several parts, including the financial capital Mumbai. The maximum city recorded its wettest July ever, with the current spell bringing day-to-day life to a grinding halt. The mood in the markets, too, seemed to have dampened, as they closed lower today. More on that later.
- Markets stumbled again after a brief recovery yesterday, with the NIFTY50 closing below 19,700
- In all, 29 of the NIFTY50 stocks closed in the red
- The US Fed announced a 0.25% rate hike yesterday, which dampened investor sentiment
NIFTY Pharma (+3.0%) and NIFTY Realty (+2.1%) were among the top sectoral gainers, while NIFTY Auto (-1.2%) and NIFTY Oil and Gas (-0.9%) were the top losers.
| Top gainers | Today's change |
| Cipla | 1,173 ▲ 104 (+9.7%) |
| Sun Pharma | 1,137 ▲ 25 (+2.3%) |
| Divi’s Lab | 3,755 ▲ 74 (+2.0%) |
| Top losers | Today's change |
| M&M | 1,448 ▼ 96 (-6.2%) |
| Tech Mahindra | 1,101 ▼ 41 (-3.6%) |
| Tata Consumer | 850 ▼ 23 (-2.7%) |
What’s trending
⭐ US Fed hikes lending rate, spooks markets
The US Federal Reserve raised its benchmark lending rate by 0.25% to 5.5%, which is the highest level since 2001. The central bank said the move was necessary to bring inflation below the 2% target. It also said that there won’t be any further rate cuts this year. The move led to a fall in the US markets yesterday, which had a cascading effect on the Indian markets today.
⭐ Nestle India dips despite healthy Q2 results
Nestle India reported a net profit of ₹698 crore for Q2CY24, up 35.6% as compared to ₹515 crore in the same quarter in the last calendar year. The company’s revenue grew 15.4% year-on-year (YoY) to ₹4,658 crore. Domestic sales grew by 14.6% YoY. However, the company’s volume growth was lower than street estimates, which led to a fall in the stock price today.
⭐ Marico soars on new acquisition
Marico shares rose 4.2% after the company said it will be acquiring an additional stake in plant-based nutrition brand ‘Plix’ for ₹369 crore, taking its total stake to 58%. It had already bought a 32.75% stake in Plix and the remaining 25.25% will be completed by May 2025.
⭐ Aurobindo Pharma soars on setting up Russian subsidiary
Shares of Aurobindo Pharma rose by 5.9% to hit their 52-week high after the company announced setting up a wholly owned subsidiary in Russia. The subsidiary will be called Auro Pharma LLC and will involve an initial investment of $10 million. The Russian pharmaceutical market is recovering after a slump during most of 2022 because of inventory destocking at the onset of the Russia-Ukraine conflict.
In Focus
Metals shine as global outlook brightens
Metal stocks have regained their lustre this month with major metals stocks like Tata Steel, Hindalco and Hindustan Copper rising in the range of 8-10%. The NIFTY Metal index, too, has risen over 6% so far in July. What are the key factors behind this rally? Let’s take a closer look.
China moves to stabilise property market
China, which is one of the world's largest metal producers, has promised to provide additional support to boost its beleaguered property sector. This has bolstered investor confidence as stability in real estate drives metal demand in construction and infrastructure sectors, which positively impacts the metal market.
Investors seek safe haven as dollar weakens
The declining US dollar is making metals more attractive for foreign investors. Seeking protection against currency depreciation and inflation, investors are turning to metals, further fueling the rally. Further, ongoing global supply chain disruptions are constraining metal supply, propelling prices higher amid increasing demand.
Green energy push raises metal demand
Growing emphasis on renewable energy and sustainable infrastructure has amplified the demand for specific metals like copper and lithium, used in electric vehicles and solar panels.
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.
Download the Upstox App Today