Gold loses shine

Nifty50: 16,258 ▲20 (+0.1%)
Sensex: 54,402 ▲125 (+0.2%)

It was a see-saw session in the markets, which eventually ended in green. However, 27 of the Nifty50 stocks closed lower.

Amongst the Nifty sectoral indices, Media (+1.0%) and Bank (+0.6%) were top gainers whereas Metals (-1.8%) and PSU Banks (-1.5%) were top losers.

Here are the top stories of the day.

Rolex Rings makes a strong debut

Leading forging company, Rolex Rings made a bumper opening as the share price of the company listed at 38% premium over its issue price of ₹900, indicating strong investor interest. The auto components maker’s IPO was the fifth most subscribed issue of 2021.

Meanwhile, IPO action continued on D-Street today. The multi-channel auto platform CarTrade Tech’s IPO was subscribed more than 30%, while cement maker Nuvoco Vistas Corporation’s public issue was subscribed around 15%. Besides these IPOs, two more public issues—Aptus Value Housing Finance and Chemplast Sanmar—will be open for subscription tomorrow. You can apply for these IPOs on Upstox by clicking here.

Quick Heal Q1 profit declines

India’s leading cybersecurity solutions provider, Quick Heal reported a net profit of ₹6 crore in June quarter, a sharp decline of 75% as compared to the last year. In the same period, the company's revenue also declined by 25% year-on-year which stood at ₹54 crore. The revenue growth was impacted by lower retail sales. Retail sales contribute 75% of the revenues. 

As per the management, the spillover of sales to the tune of ₹28 crore in Q1FY21 from the previous quarter made the base higher, resulting in de-growth in Q1FY22. Meanwhile, its shares fell 17% coupled with a spike in high volumes, indicating heavy selling pressure. 

Gold prices tumble 

The international gold prices tanked more than 4% in early morning trade today over fears that the US central bank could start rolling back the stimulus. This comes after the US unemployment rate fell to a 16-month low. 

The gold prices quickly recovered from the day’s low. MCX Gold was trading about 1% lower today. Meanwhile, the yields on US treasury bonds had also spiked on Friday. It’s important to note here that when the yield on US bonds increases as the economy does well, non-interest assets like gold lose their appeal. Besides gold, prices of silver also fell over 2%.

Closing bell

The fear that the US Fed could start reducing the stimulus, also called as tapering, sent commodity prices lower today. While gold, silver and copper prices fell about 1-2%, there was a bigger impact seen in crude oil, which was down over 4%. Meanwhile, Nifty50, which gave a sharp breakout last week, seems to be taking a breather. 

Good to know

What is forex loss or gain?
A forex gain or loss typically happens when a company buys or sells in foreign currency. As the foreign currency fluctuates in comparison to the domestic currency, the value of the goods or services changes. For instance, if the Indian rupee strengthens in comparison to the US dollar after an exporter has made a deal, he would stand to make a forex loss. And if the rupee weakens then it means the exporter would make a forex gain. 

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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.