Markets spooked 😱

Nifty50: 15,782 ▼ 25  (-0.1%)
Sensex: 52,793 ▼ 136 (-0.2%)

It’s the weekend, but today could be a bad day to head out if you're paraskevidekatriaphobic (or scared of Friday, the 13th). Markets have also given some spooky signs, as they were eerily dragged down in the last hour of trade. Is this the curse of Friday, the 13th?

Maybe, maybe not. But sugar stocks were all saccharine as they sweetened up the portfolios of shareholders. More on that later.

• Markets started stronger amid a rebound in Asian equities but gave up all gains in the last hour of trade.
• The market breadth was evenly split with 25 gainers and losers, each.

Among the Nifty sectoral indices, Auto (+2.4%) and FMCG (+1.8%) saw most gains, while Metal (-2.0%) and Financial Service (-1.2%) saw loss .

Did you know?

You can now place Good-Till-Triggered (GTT) orders on the new Upstox app. To know more about GTT orders, click here.

For more updates on F&O, click here.

What’s trending

⭐Tata Motors revs up 🚙 

Shares of Tata Motors zoomed 8% on Friday after it posted an improved Q4 performance. The company reported a net loss of ₹1,099 crore, which was much lower than ₹7,510 crore in the previous year. This was driven by a sequential improvement in the JLR business and strong growth in the passenger and commercial vehicle divisions.

⭐ Shrinkflation hits pack sizes 🛒
To offset the rising input costs due to inflation, FMCG companies like HUL, Britannia and Dabur are reducing the volume in their lowest priced packages. Dabur, for instance, has shrunk the grammage, or quantity, in its products sold at the ₹1, ₹5, and ₹10 ‘sacred price points’. The management of HUL, too, believes reducing the volume in certain price-point packs “is the only way to take price increases.”

⭐ Sun shines 🌞
Shares of Sun Pharma rose 4% intraday after it received final approval from the US drug regulator USFDA for generic mesalamine capsules. As of March 2022, the drug had estimated annual sales of $213 million in the US.

⭐Tyre stocks on a roll 🏍

Shares of tyre companies burnt up the tracks (MRF: +6.1%, JK Tyre: +6.3%) on Friday. Prices of rubber, which makes up about 20-40% of the raw material cost of a tyre, have fallen 13% from their April highs. Prices have reduced due to a drop in vehicle sales and lower demand for tyres. However, demand for tyre replacements is expected to pick up, especially in the commercial vehicle segment and for off-road tyres in the US and Europe.

⭐ Ujjivan back in the black 🏦

Ujjivan Small Finance Bank made a dramatic turnaround as it posted a net profit of ₹127 crore in Q4, after reporting losses for three consecutive quarters. This was led by a 47% year-on-year growth in the net interest income to ₹544 crore. The bank also reported its highest-ever disbursements during the quarter at ₹4,870 crore, up 14% YoY. 

⭐Telecom wars continue 📡

Are you one of those who switched from Vodafone to Jio or Airtel? New data shows that Reliance Jio gained 1.2 million users in March, after three months of declines. Airtel continued to add subscribers, with 2.2 million additions. Meanwhile, Vodafone Idea lost 2.8 million customers in the month.

In Focus

Sugar stocks on ethanol rush

Sugar stocks like Shree Renuka, EID Parry and Dalmia Sugar looked extra sweet as they rose up to 6% on Friday. This was after the government's announcement that India has already reached 9.99% of ethanol blending in petrol. This is significant because the target was to achieve 10% blending by the end of 2022. But what has that got to do with sugar, you ask?

Let us explain.

In India, most of the ethanol is derived from sugarcane. This ethanol, or alcohol (yes, some sugar companies have dabbled in the liquor industry 😉), can be blended with petrol to make it cheaper. Ultimately, this helps reduce our country's crude import bill and boosts farmers' income.

Another positive for the sector is that the government has announced an additional duty of ₹2 per litre for unblended fuel, which could give a boost to ethanol-blended fuel.

Additionally, the government has set a long term-target of 20% blending by 2030. Hence, oil marketing companies like BPCL and IOCL have begun to enter long-term purchase agreements for upcoming dedicated ethanol plants in the country. This clearly sweetens the deal for sugar companies.

IPO corner

The IPO juggernaut seems to be losing steam. A day after the Prudent Corporate IPO scraped through, the public issue of Delhivery also struggled. The IPO of the logistics services company was subscribed around 1.6 times on the final day. On the other hand, the ₹165 crore Venus Pipes & Tubes IPO was oversubscribed around 16 times.

Good to know

What is oversubscription?

An IPO is oversubscribed when the investor demand for shares during subscription is higher than the number of shares the company has on offer. For instance, the LIC IPO received a strong response as it was oversubscribed nearly three times. In the case of a small oversubscription, the allotment of shares is done on a proportionate basis. For a large oversubscription, it is done using a lottery system.

Click here to join us on Telegram for trading and investment-related videos, daily market updates, details on upcoming IPOs and more.

Yay 👍 or Nay 👎?

We'd love your thoughts on this market recap.

Haven't tried out Upstox yet? Click here to open your account now!