Nifty50: 15,691 ▼-76 (-0.4%)
Sensex: 52,323 ▼-178 (-0.3%)
The markets opened lower and traded in the negative throughout the day. The market breadth was weak, with 37 of the Nifty50 stocks closing in the red.
All Nifty sectoral indices except IT (+0.5%) and FMCG (+0.1%) witnessed losses, with Metal (-2.3%) and Real Estate (-1.6%) being the top losers.
| Top gainers | Today's change |
| UltraTech Cement | ▲ 1.6% |
| TCS | ▲ 1.6% |
| Infosys | ▲ 1.3% |
| Top losers | Today's change |
| Adani Ports | ▼ 8.9% |
| IndusInd Bank | ▼ 2.9% |
| Hindalco | ▼ 2.9% |
Here are the top stories of the day.
Hotel bookings spike as restrictions ease
- The occupancy levels at five-star hotels and premium boutique brands are at their peak over the past fortnight. This comes at a time when the restrictions on movements are being eased in some states, including Maharashtra and Delhi.
- People are flocking towards hills, beaches and leisure destinations as the trend of “revenge travel” picks up pace. In fact, travel operator Easemytrip has reported a 3-fold rise in airline bookings in June as compared to May. Shares of premium hotel chains, such as Indian Hotels, EIH and Lemon Tree are up in the range of 13-24% this fiscal year.
CESC’s Q4 profit rises
- The power utility company Calcutta Electric Supply Corporation (CESC) posted a 13% year-on-year rise in its consolidated net profit to ₹429 crore. The profit growth was led by an increase in revenue from operations and a drop in total expenses.
- The RP-Sanjiv Goenka Group’s flagship company has also approved a 1:10 stock split. The management said there is not much impact of the pandemic on the business as the power supply is an essential service. The stock was up 1.3% on Thursday.
Somany soars on strong quarter
- The ceramic tiles maker’s net profit zoomed to ₹35 crore, as compared to a loss of ₹9 crore in the year-ago period. The growth in profit was driven by a 58% rise in consolidated revenue from operations at ₹564 crore.
- The company said that the second wave has impacted sales and plant operations. As a result, most of the plants operated at lower capacity in May and June. However, it is cautiously optimistic about the recovery in the months ahead. The stock surged 8.2% today and gained over 24% so far this fiscal.
IPOs witness strong interest
- After a two-month-long pause, India’s IPO market was back in action this week, and the 4 public issues received a strong response from investors. IPOs of steel manufacturer Shyam Metalics and auto ancillary player Sona Comstar, which closed yesterday, were oversubscribed 121 and 2.3 times, respectively.
- Similarly, Hyderabad-based Dodla Dairy was subscribed more than 2.5 times on Day 2. Further, the KIMS Hospitals IPO was subscribed by around 40%. These two IPOs will close on Friday. You can click here to apply for the KIMS IPO on Upstox.
Closing bell
The Indian markets fell for the second day in a row today. In times of weakness, investors turn to defensive sectors such as IT and FMCG, which saw gains today. Meanwhile, the US Fed has said that it will keep interest rates near zero for now but could undertake two hikes by 2023. This announcement comes amid rising inflation concerns, which the central banks reckon will be transitory.
Good to know
What is monetary policy?
Monetary policy refers to measures a central bank takes to control the supply of money in the economy and maintain inflation within a target range. One of the key tools that central banks use is the rate at which they lend to commercial banks in the country. When inflation rises, central banks may increase the rate, making it costly to borrow and thereby discourage spending. But if the economy is facing a slowdown, they may prefer to reduce the rate, making it cheaper to borrow and spend.
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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.