Nifty50: 15,989 ▲ 178 (+1.1%)
Sensex: 53,750 ▲ 616 (+1.1%)
Howdy, folks!
Do you remember how a video of a Swiggy delivery man on horseback went viral a few days ago? Well, Swiggy itself has not been able to identify the person. It has set a reward for anyone who can share the whereabouts of the person!
Anyway, onto the markets, which rose decisively today after what feels like ages, with auto and paint stocks leading from the front. More on that later.
- Markets closed higher today with both Sensex and the Nifty50 scaling their highest closing levels in a month.
- In all, 40 of the Nifty50 stocks closed in the green.
- RBI has announced a number of measures to increase forex inflows to limit the rupee's decline.
Among the Nifty sectoral indices, FMCG (+2.6%) and Auto (+2.6%) saw minor gains, while Oil and Gas (-0.1%) was the sole loser.
| Top gainers | Today's change |
| Bajaj Finance | 5,930 ▲ 268 (+4.7%) |
| Britannia | 3,828 ▲ 171 (+4.6%) |
| HUL | 2,505 ▲ 103 (+4.3%) |
| Top losers | Today's change |
| ONGC | 121 ▼ 6.1 (-4.8%) |
| Power Grid | 211 ▼ 2.6 (-1.2%) |
| Hindalco | 341 ▼ 3.5 (-1%) |
What’s trending
⭐ Bajaj Finance outshines 💰
BAJFINANCE (NSE): 5,930 ▲ 268 (+4.7%)
Shares of Bajaj Finance rose by over 4% today after the company gave an update on its performance in Q1. The NBFC registered the highest-ever quarterly customer addition at 2.7 million for the three months ended June 2022. Meanwhile, the company booked 7.4 million new loans, up from 4.6 million during the same period last year. The core assets under management (AUM) grew by 31%year-on-year to nearly ₹204,000 crore.
⭐ Cheer for FMCG cos, as palm oil prices fall 🍪
BRITANNIA (NSE): 3,828 ▲ 171 (+4.6%), HINDUNILVR (NSE): 2,505 ▲ 103 (+4.3%)
FMCG stocks like Britannia and Hindustan Unilever were upbeat after crude palm oil prices fell in international markets on Wednesday. Palm oil is a key raw material for FMCG makers, and the fall in prices offers them a much needed respite. Currently, palm oil prices are trading near their six-month lows due to high inventories in Indonesia, which is a key exporter of the edible oil.
⭐ LTTS gets million dollar wings 💸
LTTS (NSE): 3,040 ▲ 85 (+2.8%)
L&T Technology Services Limited, subsidiary of engineering giant L&T, has signed an agreement with US-based Jaunt Air Mobility (Jaunt). The multi-year deal is worth over $100 million. Jaunt is in the business of making eVTOL (electric Vertical Takeoff and Landing) aircraft. As per the agreement, LTTS will set up an engineering and R&D centre in Canada for Jaunt.
⭐ J Kumar wins new order 🏗️
JKIL (NSE): 289.80 ▲ 1.7 (+0.5%)
J Kumar Infraprojects has received a new order worth ₹571 crore from Brihanmumbai Municipal Corporation. The project work includes design, build and commission of a sewer tunnel in Mumbai. The company has bagged the new order in a 60:40 joint venture with Michigan Engineers, which means J Kumar Infraprojects will receive 60% or ₹342.6 crore of the total order value.
⭐ Safety ratings to become compulsory for cars? 🚗
To improve safety standards and reduce fatalities, the government may soon make safety ratings compulsory for cars. These ratings will be given based on a car's performance in crash tests and other parameters. Carmakers will have to meet the country's safety standards, but a lower rating won't lead to any penal actions against the manufacturer. However, this would help a buyer make an informed decision.
In Focus
Oil slips, but is it too soon to cheer?
Crude oil prices had gone through the roof after key global supplier Russia began its invasion of Ukraine. However, the prices are easing. For the first time in nearly two months, crude prices fell below the $100 a barrel mark. What is the reason? Let's try to answer that.
To battle the rising inflation, central banks have begun to hike interest rates. This has raised concerns of a potential economic slowdown, which could hurt demand for commodities like crude oil. That's a major reason why oil prices have fallen. Some estimates suggest that crude oil prices could plummet to as low as $65 a barrel by the end of 2022.
But what's the impact on the markets? Industries that depend on crude oil were buzzing on Wednesday. The auto sector was one of the top performers, with stocks like Maruti Suzuki, M&M and Hero MotoCorp rising 2-4%. Meanwhile, paint stocks like Asian Paints and Kansai Nerolac were up 3-8%. Further, Indigo operator Interglobe Aviation was up 1.6%.
On the other hand, oil producers were battered, as stocks like ONGC and Oil India fell as much as 9%!
On the whole though, falling crude prices are generally considered a positive for Indian markets, as the country is a net importer of crude oil.
While cheaper crude oil could be a positive for some sectors in the near term, it may be indicative of a looming recession which could hurt the global economy.
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Good to know
What is capital adequacy ratio (CAR)?
Capital adequacy ratio (CAR) is the ratio of a bank's capital to its risk-weighted assets and current liabilities. It is set by the RBI and is used to assess the ability of banks to absorb losses and avoid insolvency. The RBI has mandated a CAR of 9% for private banks, and 12% for public sector banks.
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