Onwards and upwards!

Nifty50: 18,499 ▲178 (+0.97%)
Sensex: 62,501 ▲629 (+1.02%)

Namaste, friends!

An unusual incident kept the residents of a city in Michigan, US, captivated for hours when a bear got trapped in a tree. Onlookers who flocked from near and far to witness the unfolding drama eventually called wildlife experts to assist with the situation. The experts used tranquiliser darts to sedate the hefty 350-pound bear. As the bear drifted off to sleep, a mattress was thoughtfully kept underneath onto which it eventually plopped. The situation came to an end as the bear, still in its tranquil state, was carefully transported and released deep into the forest.

Speaking of snoozing bears, it appears our stock market bears have dozed off as well with the bulls taking the market on an upward trajectory. Let's take a closer look.

• Markets breached the 18,500 mark intraday, to settle just below it at close
• In all 42 of the Nifty50 stocks closed in the green
• European markets were positive as U.S. debt ceiling talks made progress

All the Nifty sectoral indices closed in the green. Media (+2.2%) and IT (+1.4%) were the top gainers.

What’s trending

⭐ Sun Pharma posts a profit

Pharmaceutical giant Sun Pharma (+2.3%) reported a net profit of ₹1,984.5 crore for Q4FY23. In comparison, it had reported a net loss of ₹2,277.3 core in the same quarter last year. Its revenue from operations for Q4 grew 15.7% YoY to ₹10,930.6 crore from ₹9,446.7 crore. The company's board has recommended a final dividend of ₹4 per share. 

⭐M&M Q4 profit rises

Auto major, Mahindra & Mahindra (+0.06%) reported a standalone net profit of ₹1,548.9 crore for Q4FY23, up 22.1% from ₹1,268.5 crore in the corresponding quarter last year. Its revenue for Q4 stood at ₹22,571 crore, up 31% YoY from ₹17,237 crore. The company attributes profit growth to successful launches in the automotive segment among other factors. Its board has recommended a dividend of ₹16.25 per share.

⭐Grasim's Q4 net profit dives

Aditya Birla Group flagship company Grasim Industries (-0.9%) reported a consolidated net profit of ₹1,368 crore, a fall of 50% YoY from ₹2,777 crore in the same period last year. However, the company’s consolidated revenue grew 16% YoY growth at ₹33,462 crore, mainly supported by the strong performance of key subsidiaries. The company's board has recommended a dividend of ₹10 per share. 

⭐ Oil slides amid mixed signals

Oil prices dropped due to a combination of factors, including mixed signals from Russia prior to the upcoming OPEC+ policy meeting and the influence of a stronger dollar. During morning trades, Brent crude witnessed a decrease of 30 cents, settling at $75.96 per barrel, while the U.S. West Texas Intermediate recorded a dip of 14 cents, reaching $71.69 per barrel.

In Focus

4 reasons why markets touched 18,500

The Nifty50 index has been on an upward trajectory, breaching the 18,500-mark for the first time in 2023. This week, the Indian markets rose 1.6% amid positive global cues. And, today, investors turned richer by ₹2.2 lakh crore amid broad-based buying.

So, let’s take a look at four key reasons that sparked the rally. 

1. FII inflows 

Foreign investors have been on a shopping spree in India. They bought shares worth ₹20,256 crore in May on a net basis. Even in March and April, foreign institutional investors (FIIs) were pumping money into India, buying shares worth ₹1,997 crore and ₹5,711 crore, respectively. 

2. Earnings boost

One of the reasons wooing foreign investors back to the Indian shores could be the strong earnings performance of Indian companies in the March quarter. Experts state that sectors such as banking, automobile and cement, which rely on domestic markets, reported in-line performance in Q4FY23.   

3. Tech drive

Taking a cue from the US markets, shares of India’s tech companies, which have been laggards so far, also moved upwards this week. The possibility that rates may have peaked and the progress in US debt ceiling talks provided a boost to Indian IT companies. Note here that, Indian tech companies’ significant revenue comes from the US markets, and hence factors from this region tend to impact them. 

4. Falling prices 

Inflation has been declining in India and the US, signalling that interest rates could have peaked out. In India, the retail inflation rate eased to an 18-month low of 4.7% in April. Crude oil prices have been declining on fears of a global recession and sluggishness in the Chinese economy. All this means that prices could fall further and, in turn, boost demand. 

So, with multiple factors driving Indian markets, sentiments seem to be buoyant in Indian markets.

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