Nifty50: 17,915 ▲ 101 (+0.5%)
Sensex: 60,649 ▲ 348 (+0.5%)
Konnichiwa, friends !
Not to be left behind in the space race, Japan recently attempted a historic unmanned lunar landing of its own. Unfortunately, the lunar lander struggled to find its footing on the moon's surface, and lost communication with mission control at touchdown.
The market too struggled to find its footing initially. It started off flat, but soon rose steadily amid good results while shrugging off global uncertainties.
- Markets continue to trade in green
- Out of the Nifty50 universe, 41 stocks closed in the green
- US GDP growth slows to 1.1% in Q1 2023 compared to 2.6% growth in the previous three months
Among the Nifty sectoral indices, Realty (+1.5%) and IT (+1.0%) were the top gainers, while FMCG (-0.06%) was amongst top losers.
| Top gainers | Today's change |
| Bajaj Auto | 4,412 ▲ 113 (+2.6%) |
| Tata Consumer | 6,200 ▲ 144 (+2.3%) |
| SBI Life | 1,144 ▲ 25 (+2.3%) |
| Top losers | Today's change |
| HDFC Life | 519 ▼ 11 (-2.2%) |
| HUL | 2,469 ▼ 41 (-1.6%) |
| ONGC | 159 ▼ 1.3 (-0.8%) |
What’s trending
⭐ HUL Q4 numbers below estimates
The FMCG giant, Hindustan Unilever Ltd (-1.6%) reported a Q4 net profit of ₹2,552 crores – a 10% increase over the same quarter last year. During the same period, its total sales grew by 11% YoY to ₹14,638 crore. Meanwhile, the company announced a final dividend of ₹22 per share.
⭐ Tech Mahindra Q4 profit dips
Q4 net profit of the IT services provider fell 26% YoY to ₹1,118 crore. However, the company reported over 13% YoY growth in revenue to ₹13,718 crore. The company secured new deals worth $592 million during the quarter. Along with the result, its board announced a final dividend of ₹32 per share.
⭐ Suzlon bags new order
The renewable energy solutions provider, Suzlon (0.6%) announced that it has landed a new order to supply 13 wind turbines with a combined installed capacity of 39 MW. This new project comes from Thermax Group and will be commissioned in Tamil Nadu by 2024.
⭐ CPCL stock price soars
The shares of Chennai Petroleum were up by 12% intraday. This comes after the crude oil refiner reported net profit of ₹1,012 crore, a rise of 602% sequentially. However, profit growth was flat compared to the same quarter last year. Meanwhile, its revenue from operations grew by 1.6% to ₹21,350 crore.
⭐ Gold trades lower
The global gold price traded lower below the $2,000 mark following the announcement of US GDP data. In Q1, the US economy grew by 1.1%, lower than 2.6% expansion in the previous three-month period and missing market expectations of 2% growth. Meanwhile, in the domestic market, gold prices hovered around ₹59,900 per 10 grams.
In Focus
Gujarat PSUs’ policy - a bonanza to investors
Shares of Gujarat-based public sector undertakings (PSUs) were among the top gainers this week. The stock prices of Gujarat State Fertilisers, Gujarat Mineral and four other entities rose in the range of 7% to 23%. This comes after the state government announced a new policy for its seven listed PSUs, which pertains to dividend distribution and bonus shares. Here are the complete details:
Regular dividend payout
To start with, the state government has mandated its PSUs to pay regular dividends. The criteria set for this is 30% of net profit or 5% of net worth, whichever is higher to be a minimum level of dividend declared for shareholders.
Experts believe this move could be positive for minority shareholders as they will get regular dividends. Also, formula-based payouts will provide more clarity and make these firms more attractive to investors.
Bonus and share buyback
For share buybacks, all state PSUs with a minimum net worth of at least ₹2,000 crore and cash and bank balances of ₹1,000 crore have to exercise the option to buy back their own shares.
In case of bonus shares, state PSUs are required to issue bonus shares that have defined reserve and surplus equal to or more than 10 times their paid-up equity share capital. Paid-up capital is the sum of money a company gets from shareholders when it sells shares to them.
State government has also mandated PSUs that have a face value of more than ₹1 to split their shares when their market price or book value exceeds 50 times its value.
Positive for Investors
All in all, experts believe this investor-friendly policy will benefit retail shareholders in the long run. Meanwhile, markets reacted positively to the announcement.
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Phrase of the day
Going Long
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