Monday meltdown

Nifty50: 17,490 ▼ 267 (-1.5%)
Sensex: 58,773 ▼ 872 (-1.4%)

Hey, there!

Bummed out with the markets today? Don’t worry, there’s something to cheer you up. The much anticipated prequel to Game of Thrones dropped its first episode. Time to grab some popcorn! 

• After a gap-down opening, benchmark indices closed lower following weak global cues.
• In all, 45 of the Nifty50 stocks closed in the red.
• The US dollar hit a 5-week high on expectations of a Fed rate hike. More on that later.

All of the Nifty sectoral indices closed in the red, with Metal (-2.9%) and Realty (-2.5%) witnessing the most losses.

What’s trending

⭐ L&T bags large order

LT (NSE): 1,878 ▼ 57 (-2.9%)

The hydrocarbon-onshore division of L&T’s energy business has secured a large contract from Indian Oil Corporation (IOC). The contract involves engineering, procurement, construction, and commissioning (EPCC) for setting up a Residue Hydrocracker Unit (RHCU) for the P-25 project of IOC’s Panipat Refinery. Although the value of the contract was not revealed, L&T classifies it under the ‘large’ category, which refers to orders worth ₹2,500-5,000 crore.

⭐ Paytm reappoints CEO

PAYTM (NSE): 776 ▲ 3.9 (+0.5%)

Shareholders of Paytm have voted in favour to reappoint Vijay Shekhar Sharma as MD & CEO of the company. The stock had fallen sharply after a group of proxy advisory firms had opposed the reappointment of the company’s CEO. However, 99.67% votes were in favour of the reappointment.

⭐ Gillette India glides ahead

GILLETTE (NSE): 5,482▲ 164 (+3.0%)

Gillette India reported a 27% year-on-year (YoY) rise in sales to ₹553 crore, driven mainly by its strong brand fundamentals. Meanwhile, its net profit rose by 145% YoY to ₹68 crore. However, on a yearly basis, the company’s profit declined by 7% to ₹289 crore due to softening consumption trends and commodity price inflation during the period. The company follows the July-June accounting year. 

⭐ DB Corp gets power boost

DBCORP (NSE): 108 ▲ 13 (+13.9%)

Shares of leading media company DB Corp surged over 17% intraday. On Friday, Adani Power acquired DB Power (DBPL) from Dainik Bhaskar Group for ₹7,017 crore. DB Corp is the flagship company of the Dainik Bhaskar Group.

In Focus

Markets stumble on rate hike buzz

Indian markets got off to a shaky start this week. The benchmark Nifty50 saw a decline of over 290 points, catching investors off guard. But what were the key triggers for today’s fall? Let's dig in.

Major global markets witnessed selling pressure as investors turned cautious after a key Fed official hinted at further aggressive rate hikes. Investors now look forward to Fed chairman Jerome Powell's speech at the three-day Jackson Hole Symposium, which is scheduled to start on Thursday.   

Amid this, the US dollar was in demand on Monday, hitting a 5-week high. A rising dollar impacts other assets as well. Gold prices fell to their lowest in more than three weeks. Even the Indian rupee slumped to a four-week low of 79.91 per US dollar.

Market experts believe that investors and traders are pricing in future interest rate hikes by the US Fed, resulting in today’s market fall in India and elsewhere.

IPO corner

India's largest airport services aggregator platform, Dreamfolks Services is all set to open its public issue on 24 August. The price band for the ₹562 crore IPO is between ₹308 and ₹326 per share. The IPO is entirely an offer for sale, with the promoters selling up to 1,72,42,368 equity shares with a face value of ₹2 each.

Good to know

What is intraday trading?

Intraday trading is a short-term trading strategy. It refers to buying and selling of shares on the same day before the market closes. If a trader fails to do so, the intraday order is usually squared off by the broker before the end of the day’s trade. With share prices fluctuating throughout the day, intraday traders use the movements to make a profit. They usually examine trends and technical indicators before placing their intraday trades.

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