No Monday blues

Nifty50: 16,871 ▲ 240 (+1.4%)

Sensex: 56,486 ▲ 935 (+1.6%)

• Despite a subdued opening, markets resumed the uptrend and closed in the green for the fifth consecutive day.
• In all, 37 stocks of the Nifty50 pack ended in the positive. 
• On hopes of progress in the Russia-Ukraine peace talks, crude oil prices fell 5% during the day, which created a positive sentiment.

Among the Nifty sectoral indices, Media (2.4%) and Bank (+2.2%) were the top gainers, while Realty (-1.6%) and Oil & Gas (-0.5%) were the top losers.

For more updates on F&O, click here.

Here are the top stories of the day.

Paytm shares hit record low

Shares of One 97 Communications (Paytm) hit record low after the RBI directed Paytm Payments Bank to temporarily halt onboarding of new customers. The central bank had observed certain supervisory concerns at the payments bank. 

Paytm, which owns a 49% stake in Paytm Payments Bank, doesn’t foresee a major impact on Paytm’s overall business due to these developments. However, investors got cold feet owing to regulatory uncertainty.

Jubilant FoodWorks falls amid CEO’s resignation

Jubilant FoodWorks, which holds the master franchise rights of Domino’s Pizza, saw its shares plunge as its CEO’s exit was announced. This comes at a time when it has started seeing recovery in delivery and takeaway channels. 

Further, it has not only expanded its store network (to 1,500 Domino’s stores in India) but also the product portfolio (added Popeye’s). The street would watch out for the name of the new CEO before taking a meaningful bet.

Inflation above street estimates

India’s consumer inflation for February inched up to 6.07%, its 8-month high. The figure was well above the street estimates of 5.93% and RBI’s upper limit of 6%. 

Overall, the price rise was primarily seen in rural areas and the increase was mainly due to higher fuel prices. Meanwhile, wholesale inflation too rose and stood at 13.11%. Since producers generally pass on the rising costs to their customers, the WPI inflation is seen as a precursor to high retail prices.

IPO Corner

As per media reports, the mega IPO of LIC, which was set to launch this month, is now likely to launch around mid-May with the hope that the market turbulence triggered by the Russia-Ukraine conflict will be resolved. If the IPO is delayed beyond May, the government may have to file fresh papers with updated financial numbers.

Good to know

What is a safe-haven investment?

A safe haven is a type of investment that is expected to maintain or increase in value during an economic downturn. It is perceived to be a relatively safe option for investors to limit their exposure to risky assets like stocks. Examples of safe haven investment include precious metals like gold. Since gold is a physical commodity, it’s supply remains stable unlike cash. Gold is often considered as one of the safest options to invest in times of economic instability. During the 2008-09 financial global crisis, the value of gold saw significant increase.

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