Nifty50: 16,931 ▲ +225 (+1.3%)
Sensex: 56,889 ▲ +765 (+1.3%)
Following a gap-up opening, the markets marched upward throughout the day to close at new lifetime highs. Today, 43 of the Nifty50 stocks posted gains, suggesting broad-based buying.
Top gainers among the Nifty sectoral indices included Metal (2.4%) and Bank (2.0%), while the IT index (-0.5%) was the only one to close in the red today.
| Top gainers | Today's change |
| Bharti Airtel | ▲ 5.0% |
| Divi's Lab | ▲ 4.2% |
| Axis Bank | ▲ 4.0% |
| Top losers | Today's change |
| Tech Mahindra | ▼ 1.4% |
| Nestle India | ▼ 1.1% |
| Eicher Motors | ▼ 1.1% |
Here are the top stories of the day.
L&T bags significant orders
The engineering and construction major has received significant orders—categorised as orders in the range of ₹1,000–2,500 crore—from multiple businesses. However, the company did not announce the exact size of the deals.
Some of these include building a multi-level parking lot and advocate chambers for the Allahabad High Court. Its Power and Transmission division has also won a construction deal for a power substation in Saudi Arabia. The stock closed 1.1% higher today.
Maruti to hike prices
In September, the country’s largest carmaker will hike prices across its model range. The company cites rising input costs as the reason for increasing the prices of its vehicles.
In addition to rising input costs, the auto industry faces a shortage in the supply of semiconductors. Because of it, Maruti and other automakers even announced a production cut earlier in August. Maruti Suzuki’s stock closed 2.6% higher today, but trades at about 18% below its 52-week high.
Nazara soars on new acquisition
Shares of the recently listed Nazara Technologies surged nearly 7% intraday after the company announced that it will acquire OpenPlay. OpenPlay is a Hyderabad-based gaming company. The announcement of the acquisition came post market hours on Friday.
OpenPlay has been acquired for ₹186 crore, an amount that Nazara will pay out in tranches. As per Nazara’s filing, OpenPlay reported a revenue of ₹53.4 crore in FY21, with its revenue growing at a CAGR of 60% over the last three years. Meanwhile, shares of Nazara Technologies have returned over 65% since listing in March this year.
Closing bell
The markets gave a thumbs-up to the US Fed’s decision to not hike interest rates. The Nifty50 gave a breakout from its short-term resistance of around 16,700. All the major international indices too echoed the broader sentiment and rose today. In August, the Nifty50 has risen 7.4%, its strongest monthly gain in calendar year 2021. Tomorrow, the June quarter GDP data will be released. The street expects a solid 20% growth, albeit on last year’s low base.
Good to know
What is pledging of shares?
When the promoters of a company use their shares as collateral to secure a loan, it is called pledging of shares. A promoter of a company can pledge shares for personal requirements, working capital requirements and investment in other entities. While it is an option to raise capital, pledging of shares can also create problems in certain cases. If the price of shares falls below a certain level, then the promoter has to either pledge more shares as collateral or fill the shortfall. And if the promoters are unable to foot the shortfall, then lenders can sell their shares, thereby hurting the share price and also reducing the total promoter stake in the company.
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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.