NIFTY50: 19,574 ▲ 46 (+0.2%)
SENSEX: 65,780 ▲ 152 (+0.2%)
- Benchmark indices rose for the third consecutive day, even as the volatility index fell
- In all, 33 of the NIFTY50 stocks closed in the green
- India’s Services PMI dipped to 60.1 in August from a 13-month high of 62.3 in July
Among the NIFTY sectoral indices, Media (+3.1%) and Pharma (+1.1%) were the top gainers, while Financial Services (-0.1%) and Bank (-0.1%) saw minor losses.
| Top gainers | Today's change |
| Apollo Hospitals | 4,980 ▲ 155 (+3.2%) |
| Coal India | 255 ▲ 7.6 (+3.0%) |
| Sun Pharma | 1,132 ▲ 23 (+2.0%) |
| Top losers | Today's change |
| UltraTech Cement | 8,454 ▼ 127 (-1.4%) |
| Dr Reddy | 5,580 ▼ 79 (-1.4%) |
| SBI Life | 1,311 ▼ 17 (-1.3%) |
What’s trending
⭐ Paytm surges on robust performance in August
Shares of One97 Communications Ltd, which operates Paytm, surged over 3% today. The stock saw strong investor interest after the company reported robust growth in its payments and loan distribution business in August. Its average monthly transacting users stood at 9.4 crore for July and August, During the same period, its gross merchandise value was at ₹3 lakh crore, a growth of 43% year on year. The company also distributed loans worth ₹5,517 crore in August.
⭐M&M Financial posts steady growth
Non-banking finance company Mahindra & Mahindra Financial Services posted a 15% YoY increase in August disbursements, reaching ₹4,400 crore. Year-to-date disbursements as of August FY24 hit ₹20,950 crore, a 22% rise from the previous year. Meanwhile, collection efficiency remained steady at 96% YoY. By 2025, the company plans to double its AUM, which stood at approximately ₹90,500 crore as of August. However, the company's shares closed about 1% lower today.
⭐ Patel Engineering soars on order win
Shares of Patel Engineering surged 5% after the company, along with a JV partner, won an urban infrastructure development project from Madhya Pradesh Jal Nigam worth ₹1,275.30 crore. Patel Engineering, which holds a 35% stake in the JV, will have a share of ₹446.36 crore in the project. This project is located in Ujjain and Indore in Madhya Pradesh and is to be completed within 24 months. It also involves operations and maintenance for an additional 10 years.
⭐ Crude rises as Saudi Arabia extends production cut
International crude oil prices rose more than 1.5%, with Brent crude futures trading above $90 per barrel. This comes after Saudi Arabia extended its voluntary production cut of 1 million barrels per day until the end of this year.
In Focus
Steel stocks stay strong
Shares of steel companies have witnessed strong traction with companies like Tata Steel, JSW Steel and Jindal Stainless rising in the range of 5% to 12% in the last two weeks. Meanwhile, the NIFTY Metal index is up 7.7% during the same period. Let’s explore the key factors behind this rise.
Sustained price hikes
Prices of steel products have seen a sustained price hike in recent months. For instance, steel makers raised steel rebar prices by ₹1,500 to ₹2,500 per tonne this week—the fifth hike in the last five weeks. This price hike comes amid strong pre-election demand and increasing prices of key raw materials like iron ore and coking coal. Experts believe that price hikes by companies will protect their revenue and profitability in the upcoming quarters.
Robust domestic economy
Besides price hikes, metal stocks are bolstered by strong domestic steel demand amid robust economic growth. India’s GDP grew at 7.8% in the April-June quarter.
Additionally, the government's sustained push for infrastructure spending ahead of the general election is also giving a boost to steel demand. Further, high capex allocation in key steel consuming sectors like railways, national highways and housing is expected to drive steel consumption.
In anticipation of healthy demand, metal companies are ramping up their production output. According to reports, the top five metal companies have earmarked as much as ₹55,000 crore per year towards capital expenditure.
China’s economic stimulus
Metal shares are also moving up on hopes of an economic revival in China after its government unveiled a series of policy and fiscal measures. Growth in the Chinese economy is positive for companies dealing in industrial commodities, as China is one of the world's largest consumers of metals.
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