Friday fever 😍

Nifty50: 16,266 ▲ 456 (2.8%)
Sensex: 54,326 ▲ 1,534 (2.9%)

Hello people!

Guess who was in an absolute FRI-YAY mood. The bulls! After ceding ground for much of this week, the bulls raced ahead today to reclaim their turf.

Investors will finally breathe easy after a week that was filled with more twists and turns than an action thriller. Speaking of movies, it might be a good time to catch one of the summer blockbusters at a cinema and savour the moment. Who knows what the next week holds? 🤷🏻‍♂️

• Markets on Friday made a strong comeback after falling sharply in the previous session.
• The relief rally came as Asian stocks jumped after China cut a key lending rate to combat a slowdown in the economy.
• In all, 48 of the Nifty50 stocks closed in the green.

All of the Nifty sectoral indices ended in the positive, with Media (+4.4%) and Realty (+4.2%) gaining the most.

Did you know?

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What’s trending

⭐ No good k‘night’ for Godrej Consumer 😞

Godrej Consumer, known for brands like Cinthol and Good Knight, closed 4.3% lower after it reported weak Q4 results. Net profit fell marginally to ₹363 crore year-on-year, mainly due to commodity inflation. Meanwhile, revenues rose 7% to ₹2,894 crore, but the management attributed this to price hikes. The management also said the volumes from the company’s India business fell 3%. 

⭐ Ashok Leyland zooms ahead 🚚

Shares of Ashok Leyland were up 6% on a robust Q4 performance. Net profit for the March quarter grew 273% year-on-year to ₹901 crore on account of an exceptional item of ₹470 crore and strong sales growth. Revenues for the quarter were up 25% to ₹8,744 crore mainly due to a 11% rise in volumes and a favourable product mix.

⭐ Iron tonic for mining cos 💪

Vedanta (+3.2%) and NMDC (+4.7%) saw their shares close higher after the Supreme Court lifted curbs to sell and export iron ore mined in Karnataka. The Supreme Court had placed restrictions on iron ore exports in 2012 due to concerns about environmental degradation and to preserve the state's mineral resources.

⭐ Fantastic four for CPCL 😎
Shares of Chennai Petroleum Corporation Limited (CPCL) rose 5% intraday and touched a four-year high today. The stock has rallied over 150% in nearly two months after strong Q4 earnings. In its Q4 result, CPCL reported a four-fold jump in its consolidated net profit at ₹1,002 crore. Meanwhile, the company's revenue surged 43% YoY to ₹20,997 crore.

⭐ Amazingly Welspun 😃
Welspun Corp was pipin’ hot today. Its shares shot up over 9% after the company announced that it has won an order worth over ₹5,000 crore. The order is for supply of 325,000 MT of large-diameter coated pipes for transporting natural gas in the US. This is the single-largest order in the company’s history for supply of pipes. 

In Focus

REIT here, right now

The economy has reopened and we've begun to flock back to our offices and beloved shopping malls. But guess who’s benefiting from you returning to offices and malls? The real estate investment trusts or REITs. 

Stocks of listed REITs in India—Brookfield India, Embassy Office Parks, and Mindspace Business Parks—are up as much as 10% since the start of the year.

To cash in on the boom, the country's largest real estate player, DLF, is also building the blocks to launch its own REIT in the coming months. But what's a REIT? Let's explain.

A REIT is a real estate investment trust. It’s a kind of company that owns and manages income or rent-producing properties, especially malls and offices. So when you invest in a REIT's shares, you're actually investing in a portfolio of income-generating real estate assets.

But why buy a REIT share rather than the actual property? That's because it makes it easier (and cheaper) for small investors to buy a small stake in mega offices and shopping malls (plus, you don't even have to manage them!). 

Also, as an investor, you get 90% of all rental income earned in the form of dividends. This results in a steady income.

So over time, REITs have become a viable investment alternative for dividend-seeking investors. However, events such as the Covid-19 pandemic and work from home scenario have led to lower demand for office space and have adversely impacted the rental yield of REIT firms.

But DLF’s management ‘REIT’erates, that the occupancy rate (at 88% at the end of FY22) has been recovering. Besides, its rental income also rose 10%. 

So this is one major benefit of going back to the office, right?

IPO corner

Despite a sharp rebound in the markets, IPOs were lacklustre today. On the final day, the IPO of luxury watch retailer Ethos barely managed to get fully subscribed. Meanwhile, the IPO of eMudhra was subscribed 48% on Day 1. Click here to apply for IPOs on Upstox. 

In other news, Prudent Corporate made a tepid debut on the bourses. Shares of the retail wealth management services company listed at a premium of 3% on the NSE. However, they pared their initial gains and closed below the issue price of ₹630 per share.

Good to know

What is a circuit breaker?

Heard of this term often? It functions exactly the same way as the one in your home. A circuit breaker is the band of the upper and lower limit within which a stock or an index moves. It is a type of a mechanism to temporarily stop trading to prevent panic selling or frenzied buying on a stock exchange. For example, trading was halted for 45 minutes on 23 March 2020 as Sensex hit a lower circuit limit of 10% as India, along with other countries went into a lockdown to stem the spread of Covid-19.

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