Nifty50: 17,624 ▼ 31 (-0.1%)
Sensex: 59,028 ▼ 168 (-0.2%)
Hello, people!
Markets are known to be volatile. Thankfully, there are things that remain stable, like the Vande Bharat Express, India's fastest engine-less train. The train runs so smoothly that a glass of water placed inside the train remained stable even at a speed of 180 kmph.
- Mirroring weakness across global markets, benchmark indices fell for the second straight day.
- In all, 25 of the Nifty50 stocks closed in the red.
- Investors await the outcome of the European Central Bank’s decision on interest rates on Thursday.
Among the Nifty sectoral indices, Media (+1.4%) and Pharma (+0.7%) saw gains, while Auto (-1.1%) and Bank (-0.5%) were the top losers.
| Top gainers | Today's change |
| Shree Cement | 23,480 ▲ 1,825 (+8.4%) |
| UltraTech Cement | 6,785 ▲ 289 (+4.4%) |
| Adani Ports | 876 ▲ 25 (+3.0%) |
| Top losers | Today's change |
| TATA Motors | 446 ▼ 11 (-2.5%) |
| Bajaj Auto | 3,848 ▼ 81 (-2.0%) |
| IndusInd Bank | 1,090 ▼ 18 (-1.7%) |
What’s trending
⭐ Adani Group to build giga factories
Adani Group is planning to build three giga factories to manufacture solar modules, wind turbines and hydrogen electrolyzers. This is part of the group’s plan to invest $70 billion in clean energy by 2030. The factories will help generate an additional 45 gigawatt of renewable energy, which will add to the group’s existing capacity of 20 gigawatt.
⭐ Max Ventures rises on acquisition deal
MAXVIL (NSE): 130 ▲ 3.3 (+2.6%)
Shares of Max Ventures & Industries rose by nearly 5% intraday after its wholly owned subsidiary Max Estates acquired a 100% stake in Acreage Builders. The total acquisition cost is ₹291.5 crore. Through this purchase, Max Estates would get an opportunity to develop 7.15 acres of commercial projects in Gurugram.
⭐ Global slowdown hurts India’s exports
India’s merchandise exports dropped marginally to $33 billion in August 2022 as compared to $33.3 billion in the same month last year. According to experts, the fall in demand from China and recessionary trends in the West have dented India’s exports. At the same time, the export duty on steel products has also impacted exports.
⭐ ArcelorMittal shuts plant in Europe
World's second-largest steel producer, ArcelorMittal, announced the closure of a major plant in Europe. It is shutting down one of the two existing blast furnaces at its steelworks plant in Germany. The management said the company is unable to operate all of its factories profitably due to high energy costs. It also added that the high cost of gas and electricity is hampering competitiveness.
In Focus
Tyre companies on a roll
Tyre makers are in the fast lane this year. Despite volatility in the broader market, stocks of leading tyre companies like Apollo Tyres, Ceat and MRF have surged by 16% to 24% so far in 2022. Wondering what’s driving this upswing? Let's find out.
For starters, prices of crude oil have fallen by over 25% since June 2022. Even natural rubber prices have corrected by over 18% from their peak levels of November 2021. Crude oil derivatives and natural rubber make up 70% of the raw material costs for tyre companies.
In the last few months, sales of passenger vehicles, especially SUVs and CVs, have seen robust growth due to normalising chip supply and improving macroeconomic conditions. SUVs and commercial vehicles (CVs) are generally considered as high-margin products for tyre firms. As a result, the tyre makers are seeing a rebound in demand from auto companies.
Besides this, to capture the market share in the electric vehicle (EV) segment, many tyre firms are launching premium products that have best-in-class rolling resistance and improve mileage for EVs. This premiumisation push is helping margins expansions for the tyre firms.
All in all, tyre manufacturers are having a smooth ride in the year so far. Will the road get bumpy ahead? Only time will tell.
IPO corner
On the final day, the ₹832 crore IPO of Tamilnad Mercantile Bank witnessed strong interest and was subscribed 2.8 times. The retail portion was oversubscribed by 6.4 times, while the non-institutional investors portion was booked 2.9 times.
Good to know
What is manufacturing PMI ?
The manufacturing purchasing manager’s index (PMI) is an indicator of growth in a country’s manufacturing sector. The index is based on a survey of purchasing managers of companies which includes their responses to questions related to new orders, output, employment and inventories. A PMI above 50 represents expansion and a reading below 50 means contraction. Traders and investors track the PMI because it reflects a change in business conditions, which might impact the movement in stock markets.
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