Maruti Suzuki's dividend, Vodafone Idea surges & more

Nifty50: 17,813 ▲ 44 (+0.2%)
Sensex: 60,300 ▲ 169 (+0.2%)

Namaste, friends!

Sharing is caring, right? Well, not for Netflix! The streaming giant cracked down on password-sharing in Spain and it seems like the bold move is likely to backfire. Netflix has reportedly already lost 10 lakh users in the first three months of 2023!

But losses aren't top of mind when it comes to the Indian stock markets, where the bears are steadily losing ground to the bulls.

• The Indian markets shrugged off weak global cues
• Out of the Nifty50 universe, 33 stocks closed in the green
• In Q4, Maruti Suzuki surpassed the street estimates. More on that later

Among the Nifty sectoral indices, Realty (+1.3%) and FMCG (+0.7%) were the top gainers, while Metal (-0.4%) and Oil & Gas (-0.03%) were the top losers.

What’s trending

⭐ Maruti Suzuki announces bumper dividend

India’s largest carmaker (0.1%) announced its highest-ever dividend of ₹90 per share, up from ₹60 per share in FY22. Meanwhile, in Q4, the company’s net profit rose by 42.7% YoY to 2,623 crore. In the same period, the sales also rose by 20.8% to ₹30,821 crore.  Click here to know more about Maruti Suzuki’s March quarter results.   

⭐ LTTS Q4 profit rises 

In the March quarter, L&T Technology Services (0.6%) reported an 18% year-on-year rise in its net profit to ₹309 crore. This was supported by a 19% rise in revenue to ₹2,092 crore. Meanwhile, the pure-play engineering services company’s attrition rate (the percentage of employees that leave the company) rose to 22.2% in Q4FY23 from 20.4% in Q4FY22. 

⭐ Vodafone Idea surges

Shares of the telecom company (+4.7%) rose today after Emirates Telecommunications Group Co (also known as e&) increased its stake in Vodafone Idea's holding company Vodafone Group Plc. According to reports, e& has increased its stake from 14% to 14.6%. The company also has the regulatory nod to increase its stake to 15%.

⭐ Oil prices move up

Oil prices rose slightly today in the early trade. This comes after the latest data revealed a drop in US crude oil inventory. The oil prices have been under pressure over the fears of a global economic slowdown.

In Focus

High commodity prices dent liquor makers

In 2023, shares of major alcohol companies like United Spirits and United Breweries dropped 12% and 14%, respectively. This comes at a time when the alcohol makers are facing higher commodity prices. Here are the complete details on same: 

High commodity prices

The rising prices of key raw materials like glass and extra neutral alcohol (ENA) is denting the margins of alcohol companies. ICYDK,  ENA and glass account for over 65% of total raw material costs for these companies. In fact, in the December quarter, alcohol makers’ profitability or margins dropped between 4% to 7% amid rising raw material prices. 

On the other hand, the retail price of alcohol in India is controlled by state and central governments. This means, alcohol makers aren’t able to adjust product pricing to offset the rising input costs.

Policy reversal 

Besides this, reversal of the excise policy by the Delhi Government could also impact distribution and sales volume of major players. Delhi excise policy, which was introduced in FY22, granted licences to private players to sell liquor. However, the policy was scrapped in August 2022 and now only government-owned liquor vendors are allowed to sell alcohol in the national capital.  

All in all, these factors are likely to stay in the medium term. Hence, it would be interesting to see how these companies address key challenges in upcoming Q4 results.

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.

Phrase of the day

Going Long

When you buy a stock, futures or an option contract with the hope that its price will rise, it is called going ‘long’.  When should you go long, find out from this chapter What does going Long mean? 

Click here to join us on Telegram for trading and investment-related videos, daily market updates, details on upcoming IPOs and more.