Nifty50: 15,853 ▲+41 (+0.2%)
Sensex: 52,904 ▲+134 (+0.2%)
Despite a weak opening, markets picked up the pace and closed higher. However, the advance-decline ratio was not favourable, with 28 of the Nifty50 stocks closing in the red.
Among the Nifty sectoral indices, IT (+3.1%) and Pharma (+0.3%) were top gainers, whereas Realty (-0.9%) and PSU Bank (-0.5%) were the top losers.
| Top gainers | Today's change |
| Wipro | ▲ 6.9% |
| Tech Mahindra | ▲ 2.5% |
| Infosys | ▲ 2.1% |
| Top losers | Today's change |
| Maruti Suzuki | ▼ 1.4% |
| Adani Ports | ▼ 1.0% |
| Hindustan Unilever | ▼ 0.9% |
Here are the top stories of the day.
Maruti gears up for a new plant
- According to the reports, India’s largest car maker is planning to invest ₹18,000 crore for setting up a new factory in Haryana. The plant will have the capacity to produce 7.5 to 10 lakh units annually.
- The new plant is expected to replace the company’s Gurugram plant, which has a capacity of about 7 lakh units. While the pandemic has delayed plans for the new factory, the carmaker reportedly said that it would like to shift to the new location quickly. Meanwhile, shares of Maruti Suzuki were down 1.4% today.
Zomato IPO receives strong interest
- The online food delivery company received strong interest from investors and was fully subscribed on Day 1. Individual investors flocked towards the IPO in large numbers, with the retail portion being oversubscribed more than 2 times.
- Ahead of the IPO opening, anchor investors including global PE majors and domestic mutual funds mopped up Zomato’s shares worth about ₹4,200 crore. You can apply for the Zomato IPO on Upstox by clicking here.
WPI cools, but prices still high
- The wholesale prices marginally eased to 12.07% in June from 12.94% in May. The reason for the high inflation rate was the low-base effect of last year as well as rising fuel and commodity prices.
- The prices of fuel and manufactured products like metal and chemicals rose by 32.8% and 10.8%, respectively. Whereas, food prices moderated to 6.6% in June as compared to 8.1% in May, which helped in cooling down the wholesale prices to an extent.
Steel Strips soars after order win
- Shares of Steel Strips Wheels surged 12.7% today after it announced yesterday that it has received international orders worth ₹113 crore. The company will execute these orders by August 2021 and is expecting similar orders in the coming months as its business recovers rapidly.
- The automotive wheel maker had recently posted a 463% YoY rise in revenue from operations for the June quarter to ₹678 crore. Further, it recorded a profit of ₹51 crore, as compared to a loss of ₹38 crore in the corresponding period last year. The stock has risen over 20% in the last two days and over 51% so far this month.
Closing bell
Today the market was almost single-handedly driven up by IT stocks, as 4 out of top 5 Nifty50 gainers were IT companies. The Q1 results of TCS, which were declared last week, were below street estimates and had spoiled the investor sentiments. However, strong results and improved outlook of Infosys—declared after market hours—have lived up to the market expectations. In addition, the market is also enthused by the Zomato IPO, where the retail frenzy is already visible. Amid this bullishness, weak international cues and high inflation rates are being overshadowed.
Good to know
What is the cut-off price of an IPO?
The cut-off price of an initial public offering (IPO) refers to the price at which the shares are issued to investors. In an IPO, shares are usually offered within a price band. As an investor, one can bid for shares at any price within the price band or simply select the cut-off price option. Instead of bidding, at a specific price, if you apply at the cut-off price, then you are expressing willingness to pay whichever price that shares are issued at. This increases the chances of getting an IPO allotment.
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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.