Bulls scale Mt 16k

Nifty50: 16,130 ▲+245 (1.5%)
Sensex: 53,823 ▲+872 (+1.6%)

After a strong opening, the markets steadily rose throughout the day and closed near the day’s high. A whopping 44 of the Nifty50 stocks ended with gains today.

All of the Nifty sectoral indices, except for Media (-0.8%) and Metal (-0.05%), rose today with maximum gains seen in FMCG (+1.7%) and Financial Services (+1.6%). 

Here are the top stories of the day.

Tata Motors hikes PV prices

The leading auto manufacturer announced that it will hike prices of its passenger vehicles (PVs) from 3 August 2021. It will raise prices by 0.8% on average depending on variant and model.

Recently, the company had mentioned that it plans to raise prices of PVs to offset the steep rise in cost of inputs like steel and precious metals. In July, auto major Maruti Suzuki had also raised prices of some models to offset higher input costs. Shares of Tata Motors were up 2.2% today, while those of Maruti Suzuki closed 1.6% higher.

Orient Cement posts strong Q1

Shares of Odisha based cement maker rose 3.3% today and closed at their highest level in over three years. For the June quarter, the cement maker reported a massive 249% YoY jump in net profit to ₹89 crore. The strong profit growth was supported by a 68% rise in revenue from operations to ₹691 crore.

In its annual report, the company had said that the cement industry is expected to witness volume growth due to demand revival in infrastructure and urban housing segments. However, the industry’s need to improve operating leverage with a focus on improving capacity utilisation is likely to limit price improvement.

VA Tech bags large order

The water technology player has bagged an order worth ₹1,230 crore from Russia-based Amur Gas Chemical Complex. This is the company’s largest order from the oil and gas sector.

It will be a technology and system integrator for the wastewater treatment unit. As of March 2021, the company’s order book stood at ₹9,500 crore, about three times its FY21 revenue. Meanwhile, shares of VA Tech Wabag were down 1.9% today.  

Closing bell

Today, the benchmark indices broke out of the two-month long consolidation and hit record highs. There was a broad-based participation from the index stocks. However, it seemed that midcap and smallcap stocks didn’t join the rally. The Nifty Midcap 100 index was flat, while the Smallcap 100 index declined. Further, the cues from major international equity indices were a mixed bag. Thus, it becomes important to see whether the market momentum sustains or the indices again fall back into the consolidation range. 

Good to know

What is intraday trading?
Intraday trading refers to the style of short-term trading where the trader buys or sells a stock and then squares off the position on the same day before the market closes. .For instance, a trader may buy a stock at ₹100 at 10:00am and then sell it off at ₹103 by 10:30am. The objective of intraday trading is not to invest for the long term but to trade for quick gains. The biggest advantage that traders see in intraday trading is that it does not block the capital after the market closes for the day. Further, not taking positions overnight also helps in eliminating risks of unfavourable opening on the next day. Meanwhile, one of the disadvantages of intraday trading is that it gives very little time (only a day) for the position to become profitable. 

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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.