Hat-trick

Nifty50: 18,755 ▲ 39 (+0.2%)
Sensex: 63,228 ▲ 85 (+0.1%)

Namaste, friends !

With the markets rising for the third straight day this week, one may wonder whether the bears have gone on a vacation. Well, that’s true at least for one bear, which was on a Florida beach recently. Jokes apart, let’s take a look at what happened in the markets today.

• Benchmark indices extended the winning streak to the third day.
• In all, 27 of the Nifty50 stocks closed in the green
• India’s WPI inflation dropped to a three-year low of -3.48% in May 2023

Among the Nifty sectoral indices, Metal (+1.4%) and Oil & Gas (+0.9%) were the top gainers, while Media (-0.5%) and Bank (-0.2%) were the top losers.

What’s trending

⭐ Tata Consumer hits 52-week high

Shares of Tata Consumer Products gained more than 5% intraday, touching a new 52-week high of ₹865 per share. The stock has been on a roll of late, rising over 20% since April 2023. The recent rise in the stock could be attributed to the upbeat results in the March quarter. The company’s consolidated revenue rose by 14% YoY to ₹3,619 crore, while its net profit was at ₹290 crore, up 21% YoY.  

⭐ KEC International secures new orders 

The infrastructure firm has secured new orders worth ₹1,373 crore across its railways, civil, transmission and distribution, cables businesses. Following this announcement, shares of the company rose over 6% intraday. The company had a order book of ₹30,553 crore as on 31 March 2023. 

⭐ Heranba Industries soars  

Shares of the agrochemical company rose over 16% today after Gujarat Pollution Control Board (GPCB) revoked the factory closure order for its manufacturing unit located in Vapi. In May 2023, the GPCB ordered operations at the unit to be shut for violating pollution norms. 

⭐ Oil prices remain range-bound

International oil prices traded in a range as investors await the outcome of the US Federal Reserve meeting. As per market estimates, the US central bank could pause rate hike this time to support economic growth, which may spur the demand for oil.

In Focus

Metal stocks shine

Shares of domestic metal firms, including JSW Steel, Tata Steel, APL Apollo rose 2% to 4% today. Meanwhile, the Nifty Metal index was up 1.42%. So far this month, the metal index has soared over 5.5%. What are the key factors behind this rally? Let’s find out.

The China factor 

Metal stocks are shining today after China’s central bank surprised global markets by cutting its short-term policy interest rate. The People’s Bank of China lowered the seven-day repo rate by 0.1% or 10 basis points to 1.9% amid faltering economic growth. 

This rate cut has increased the likelihood that the central bank will reduce its one-year loan rates on Thursday and could also consider a broad package of stimulus measures to further boost the economy. 

Metal companies rejoice

As per experts, rate cuts could help revive the Chinese economy and probably boost the demand for metals from the world's largest metal consumer. 

Domestic producers will benefit from this demand surge as it will lead to higher international prices of commodities, which is likely to feed into domestic prices. Secondly, Indian producers will also benefit from higher exports to China as and when demand picks up in that country.

Recovery after correction

Besides this, major metal stocks were beaten down at the start of 2023, with JSW Steel and Tata Steel witnessing fall of over 6% and 13%, respectively, in February 2023 amid recessionary fears. This provided investors an opportunity to re-enter metal stocks at lower levels.    

As a result of this, the Nifty Metal index is on a steady rise, with cumulative gains of over 16% in the last four months.

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