Green day

Nifty50: 16,259 ▲ 417 (+2.6%)
Sensex: 54,318 ▲ 1,344 (+2.5%)

Wassup, people!

With the markets rising upwards and onwards, we are channelling our inner Justin Timberlake as we jam to ‘Can’t Stop This Feeling.’ You should put on your dancing shoes and do a little happy dance too as markets haven’t looked so good in a while. Unless of course you’d prefer to bask in the summer sun and give in to the mango Maggi mania. Do tell us how it was.. 😛

• The bulls were back in action and pushed the stock prices higher. Short covering may have also given wings to the rally.
• Happy news! All of the Nifty50 stocks closed in the green.
• Meanwhile, the wholesale inflation stood at 15%, a 9-year high. Why should you care? An increase in wholesale prices means retail prices – what you and I pay for goods – will go up in the near future.

All of the Nifty sectoral indices closed in the green with Metal (+6.8%) and Oil and Gas (+3.6%) witnessing most gains/ gaining the most.

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.

For more updates on F&O, click here.

What’s trending

⭐ LIC fails to take off 😢
Shares of India’s largest life insurer LIC made a tepid debut on the stock exchanges with investors losing ₹42,500 crore. They listed at a discount of 9% against the issue price of ₹949. The company’s market capitalisation shrunk to ₹5.57 lakh crore in comparison to the post-issue implied market cap of around ₹6 lakh crore.The state-owned company's IPO had received a decent response and was subscribed 2.95 times.

⭐Adani Group's debt soars 😰

The Adani Group has been expanding at break neck pace, but at what cost? According to a news report, the conglomerate's gross debt had touched a new high of ₹2.22 lakh crore at the end of FY22. This is 42% higher than what it was a year ago. Looks massive? Well, it is, but it is still lesser than the debt owed by the listed Tata firms (₹3.35 trillion) or Reliance Industries (₹2.82 trillion).

⭐Tata-Hyundai’s EV-olution 🔌

Charging your EV could soon be as easy as filling up the tank. Tata Power and Hyundai Motor (HMIL) have partnered up to expand the electric vehicle (EV) charging infrastructure. The power company will supply fast charging units to 34 HMIL dealers spread across 29 cities. Tata Power will also offer home charging solutions including installation and charger supply. The company has also signed a deal with Maharashtra’s NAREDCO to install 5000 EV charging stations across the state.

⭐ Metal index is ‘Back in Black’⛓️

The Nifty Metal index was the biggest gainer today. Metals stocks soared over the possibility of a revival in demand from China. Stocks like Vedanta and Hindalco rose as much as 12% on Tuesday. This comes after a Shanghai city official said the city will be free of strict Covid restrictions starting 1 June.

⭐Rupee’s still slip slidin’ away…💲
The rupee weakened sharply against the US dollar on Tuesday, hitting a fresh all-time intraday low of 77.69. Constant foreign money outflows and high crude prices continued to weigh on the domestic currency. The rupee fell 14 paise to 77.69 against the dollar intraday. Meanwhile, IT and Pharma stocks gained as a weaker rupee boosts revenues.

⭐ …But Inflation is soaring 

Wholesale inflation or what we call ‘Mandi ke daam’ rose to 15.08% in April, compared to 14.55% in March. The wholesale price index (WPI) is now at a nine-year high. The rise in prices was mainly due to rising food, fuel and power costs. But why care about wholesale inflation? It's because a high wholesale inflation rate is seen as a precursor to higher consumer prices going forward, as these producers pass on the rising costs to customers. 

⭐ Biden, Bezos’ war of words 😈 

Inflation is making temperatures soar in the US as well. Amazon founder Jeff Bezos has been engaged in a Twitter spat with President Joe Biden. The exchange started on Friday when Biden tweeted: “You want to bring down inflation? Let’s make sure the wealthiest corporations pay their fair share.” Bezos responded by accusing Biden of disinformation and misdirection. He also said that there’s no link between inflation and corporate taxes. On Monday, The White House hit back at Bezos.

In Focus

After Roti, Kapda becomes Mehenga!

When roti got expensive, the government banned wheat exports. Now, as kapda gets costlier, what will the government do? ICYMI, cotton prices are skyrocketing, and India’s textile ministry has called a meeting of garment manufacturers to find a solution. 

The price of the Shankar-6 cotton variety, which is a benchmark for exports, has more than doubled in the last one year. On 12 May, it was trading at ₹98,000 per candy of 356kg compared to ₹47,404 per candy last year.  

The management of raw cotton and garments maker TT Industries had tweeted that the domestic textile industry has lost its competitive advantage in the last one year due to the increasing cotton prices. 

The Indian textile ministry has already cut 5% customs duty and waived off 5% taxes on cotton imports till September to provide relief to the industry. However, it seems to have not been enough to ease prices.

Amid this backdrop, the government was set to meet the industry. Following the development, textile stocks like Trident, Alok Industries and Welspun rose as much as 5%.

IPO corner

A sharp market rebound meant that the ground was fertile for the Paradeep Phosphates IPO to open for subscription. The ₹1,502 crore public issue of the fertiliser maker was subscribed 29% on day 1. Click here to apply for the Paradeep Phosphates IPO. 

Meanwhile, luxury and premium watch retailer Ethos IPO will open for subscription tomorrow. Click here to pre-apply for this IPO on Upstox. 

Good to know

What is intraday trading?

Intraday trading is a short term strategy. It refers to buying and selling of shares on the same day before the market closes.  If a trader fails to do so, the intraday order will be squared off or converted into a delivery trade. With share prices fluctuating throughout the day, intraday traders use the movements to their benefit. They usually examine trends and indicators before placing their intraday or day trades.  

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