Rain on the parade 🌧

Nifty50: 16,214 ▼ 51 (-0.3%)
Sensex: 54,288 ▼ 37 (-0.07%)

Wassup, folks!

The markets proved to be as unpredictable as the monsoons in certain parts of the country. While there isn’t much you can do about the markets, you can definitely enjoy the early monsoon showers with chai and pakoras!

Meanwhile, steel stocks were bent outta shape today. Why, though? We'll decode it in a bit.

• After a good start, the markets failed to hold on to their early gains and ended marginally lower.
• In all, 25 of the Nifty50 stocks closed in the green.
• In a media interview, RBI governor Shaktikanta Das hinted at further repo rate hikes to pre-Covid levels.

Among the Nifty sectoral indices, Auto (+1.8%) and IT (+1.0%) were the top gainers, while Metal (-8.1%) and Oil and Gas (-1.6%) saw the most losses.

Did you know?

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For more updates on F&O, click here.

What’s trending

⭐Tata Motors sees better days ahead 🚗

Tata Motors expects the domestic passenger-vehicle industry to beat its FY19 sales in FY23. The industry had clocked 34 lakh units in that period. The industry’s profitability remains affected due to the semiconductor chip shortage and increased commodity prices. However, the management hopes for improved performance amid growing demand and fewer pandemic-related disruptions. 

⭐ Capital boost for Vodafone Idea 📱
Vodafone Idea is planning to raise ₹20,000 crore, including ₹10,000 crore in equity and remaining as fresh loans. With the infusion of equity, the promoters’ stake will be diluted. The company’s CEO said that amid fresh fundraising, the plan to monetise assets worth ₹7,600 crore could be put on hold. 

⭐ NTPC's powerful results ⚡

Shares of NTPC jumped 3.9% intraday as investors cheered the power company's Q4 results. Its revenues rose 23% year-on-year (YoY) to ₹37,085 crore in the March quarter on the back of growth in power generation. Net profit for the period rose 12% YoY to ₹5,199 crore.   

⭐Prestige Group has Mumbai plans 🏢

Prestige Group is hoping to break new ground in Mumbai. The Bengaluru-based real estate developer has plans to invest ₹7,500 crore over the next 4-5 years. Projects in the pipeline include commercial properties in Bandra Kurla Complex and Mahalaxmi. Other top developers like Lodha and Godrej Properties are expanding their presence in the city. 

⭐ Excise duty relief on fuel prices ⛽

Petrol prices fall below ₹100 a litre! Well, at least in some places like Chandigarh. Even if you stay elsewhere, you have something to cheer about. The central government has cut excise duty by ₹8 per litre on petrol and by ₹6 per litre on diesel. That's not all, states like Maharashtra, Rajasthan and Kerala have cut VAT (value added tax) on fuel. Talk of icing on the cake!

In Focus

Steel stocks melt

Steel stocks were beaten out of shape today. Shares of Tata Steel, Steel Authority of India (SAIL), JSW Steel, and Jindal Steel (JSPL) fell as much as 17%. That's massive, what's happening?

The reason is significant. On Sunday, the government announced a 15% export duty on some steel products. There was no export duty on steel products earlier. Meanwhile, import duty was waived for raw materials like coking coal and ferronickel.

With this step the government aims to increase the supply of steel products in India, and bring down inflation. Sectors like auto, infrastructure and real estate are expected to benefit. Interestingly, M&M (4.1%), Maruti (4%) and L&T (1.9%) were among the top gainers today.

However, steel companies will take a hit. This is because their exports will become less competitive globally as they'll have to pass on the extra costs to their clients abroad. 

Additionally, Indian steel makers have been trying to double down on exports to Europe, where supply has been impacted due to disruptions in supplies from Russia and Ukraine. Europe is the world's second biggest importer of steel after China. The management of JSPL, has said that Indian steel companies will have to cancel their European orders and take losses. No wonder, steel makers aren’t so happy.  

But it's not all bad. While the move came as a shock to steelmakers, other industries will hugely benefit from cheaper steel. This could bring down inflation and increase consumer demand. 

IPO corner

The IPO party on the D-street is far from over. On Day 2, investors flocked towards the IPO of eMudhra. The public issue was subscribed more than 96%. The retail category was oversubscribed 1.6 times. Click here to apply for this IPO on Upstox. 

Meanwhile, specialty chemicals manufacturer Aether Industries will launch its ₹808 crore IPO tomorrow. Click here to pre-apply for this public issue on Upstox.

Good to know

What is an excise duty?

Excise duty is a tax that is imposed by the central government on the production or sale of certain goods. On 1 July 2017, excise duty was replaced by the Goods and Services Tax (GST). However, excise duty is still levied on petrol, diesel, tobacco, and alcohol. Amid the rising fuel costs, the central government recently cut excise duty on petrol by ₹8 and on diesel by ₹6.

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