Indices at previous closing
Nifty50: 17,639 ▼168 (-0.9%)
Sensex: 59,034 ▼575 (-0.9%)
Nifty Bank: 37,557 ▼75 (-0.2%)
For more updates on F&O, click here.
Power companies on a roll
Shares of power companies like NTPC and PowerGrid have surged between 10-17% amid rising power consumption in the country. In the last five days, NTPC has risen 17% and hit a record high of ₹158 on Thursday, while PowerGrid has soared 10% in the last five days and has hit a fresh summit at ₹239.8.
India's power consumption has grown steadily at 4.6% YoY in March to 126.12 billion units. A media report shows that the peak power demand met in a day rose to 199.29 GW in March 2022 as compared to 170.16 GW in March 2020 and 185.89 GW in March 2021.
Steel stocks better positioned among metals
Experts said that steel companies are better placed in the metals space to absorb shocks from volatile commodity prices. It is believed that Indian steel product makers will continue to generate better cash flows. One reason for this optimism is the declining price of coking coal, which is a raw material
Coking coal prices have dropped from $630 a tonne to about $400 a tonne. There is an expectation of a further drop once supply from China increases after Covid lockdowns ease. Additionally, steel companies whose production is integrated with iron ore would see better margins, as its prices remain elevated.
Inflation expected to be above 6%
As per a report, the retail inflation for FY23 might be above 6%. In the past six months, the agricultural cost of production including fertilisers has surged by 22%. Experts believe that the MSP for agricultural produce will have to be increased by at least 8-10%. This, in turn, can take inflation above the 6% on average for this year.
Meanwhile, most analysts have predicted an increase in their inflation forecast from 5 to 5.7%.
Sectoral indices (April 7)
| Top gainers | Top losers |
| Nifty Pharma ▲ 0.4% | Nifty Oil & Gas ▼ 2.2% |
| Nifty Realty ▲ 0.03% | Nifty Metal ▼ 1.6% |
Global markets (at 7:30 AM today)
| Indices | Today's movement |
| SGX Nifty | ▲ 0.1% |
| Nikkei 225 (Japan) | ▼ 0.4% |
| Hang Seng (Hong Kong) | ▼ 0.4% |
| SSE Composite (China) | ▼ 0.0% |
| Dow Jones (US) (April 7) | ▲ 0.2% |
| NYSE (US) (April 7) | ▲ 0.2% |
| Nasdaq (US) (April 7) | ▲ 0.06% |
| S&P 500 (US) (April 7) | ▲ 0.4% |
Fact of the day
Global IT spends are forecasted to touch $4.5 trillion in 2022, 5.1% higher than 2021.
Source: Gartner
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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.