Sugar rush on D-Street

Nifty50: 16,282 ▲2 (+0.0%)
Sensex: 54,525 ▼28 (-0.0%)

While there was intraday volatility, markets hardly moved compared to yesterday. Of the Nifty50 stocks, 28 stocks ended in red.

Amongst the Nifty sectoral indices, Metals (+3.1%) and PSU banks (+0.4%) were top gainers whereas Pharma (-1.4%) and Bank Nifty (-0.6%) were top losers.

Here are the top stories of the day.

Sugar price rise fuels rally in stocks 

Sugar stocks rose sharply today and responded to the spike in the international sugar prices, which climbed up to their four-year high. The prices of sugar jumped 5.1% yesterday on the reports that sugar production in Brazil was dented by a frost. Brazil is the world’s largest sugar producer.

The sugar production dropped by 11% in the second half of July as the frost damaged crops in the central-south region of Brazil. Amid this, shares of Balrampur Chini (+2.4%), Dalmia Bharat Sugar (+3.6%), Shree Renuka (3.4%) and Triveni Engineering & Industries (+4.9%) rose sharply today.  

Lupin posts robust profit growth

For the June quarter, pharma major Lupin reported a 407% YoY growth in its consolidated net profit to ₹542 crore. The surge in profit was driven by income of around ₹373 crore from the Boehringer Ingelheim MEK program. Further, revenue from operations rose 21% YoY to ₹4,270 crore.

The company said that it expects to see meaningful growth in the second half and is focused on achieving double-digit revenue growth and optimising costs. Despite the strong results, shares of Lupin were down 6.1% today.

CarTrade zooms ahead on Day 3

The multichannel auto platform CarTrade Tech’s IPO was oversubscribed 21 times on the final day. Cement maker Nuvoco Vistas Corporation’s IPO was oversubscribed around 1.7 times on Day 3. 

Meanwhile, home loan company Aptus Value Housing Finance’s IPO, which opened yesterday, has been subscribed 37%. Also, specialty chemicals manufacturer Chemplast Sanmar Limited’s IPO has been subscribed around 26% on Day 2. You can apply for these IPOs on Upstox by clicking here.

Closing bell

Over the last three days, markets have shown a peculiar movement wherein they have fallen intraday and then clawed back into the positive zone by the end of the day. So one could conclude that the markets are upbeat but the sharp intraday falls could hurt short-term traders as it could trigger their stop-losses. Meanwhile, the retail inflation and IIP data are expected to be released after market hours tomorrow. Hence, their effect would be visible only on Friday.

Good to know

What is a market order?
A market order provides an option to buy or sell a stock at the best available price. For instance, assume that you place a ‘buy’ market order for a stock, which is trading at ₹400. It means that it will get executed at the next available price quoted by a seller, let’s say at ₹400.05. The biggest advantage of placing a market order for a stock is that it will get executed quickly at the available price and won’t lapse like it may happen in a limit order.

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Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.