Reliance ties up with Nvidia, Titan to expand its stores & more

NIFTY50: 19,819 ▲ 92 (+0.4%)
SENSEX: 66,598 ▲ 333 (+0.5%)

• Benchmark indices closed higher for the sixth consecutive session; NIFTY50 crossed the 19,800 mark
• In all, 32 of the NIFTY50 stocks closed in the green
• The Japanese economy grew 1.2% in the June quarter as compared to the March quarter

Among the NIFTY sectoral indices, Realty (+2.1%) and Oil & Gas (+1.1%) were the top gainers, while Media (-0.9%) and Pharma (-0.3%) were the top losers.

What’s trending

⭐ Reliance Industries ties up with Nvidia

Reliance Industries and chip-maker NVIDIA have announced a collaboration to build state-of-the-art AI supercomputers in India. The companies will work together to build AI infrastructure for generative AI applications tailored for India. Reliance Industries shares closed 0.7% higher today. 

⭐ Power stocks gain

Shares of power generation companies including JSW Energy, NTPC, Torrent Power, Tata Power and SJVN rose 1-4% today, after reports said that the Ministry of Power intends to issue a tender to purchase 4,000 MW of gas-based electricity for approximately 20 days between September and November. 

⭐ Titan to expand its stores 

Watch-to-jewellery maker said it plans to open nine new stores of its jewellery brand Tanishq in Gujarat in the coming months, taking the number of stores to 28 in the state by the end of this fiscal. The company is also planning to expand its overseas presence by opening international stores in countries including the US and Australia in the near future. Shares of the company rose 0.8% today.

⭐ IRCTC rises after announcement 

Shares of IRCTC gained as much as 6% intraday after the company announced that it will arrange catering facilities in all coaches or trains booked on full tariff rates (FTR). The stock pared some gains and closed 2.5% higher.

In Focus

Paper stocks on a roll

Shares of listed paper companies were on a roll this week. JK Paper, West Coast Paper, Orient Paper and others have seen their share prices rise 8% to 15% this week. What are the key factors behind this rise? Let’s dig in. 

Price hikes and profitability

Paper companies have implemented significant price hikes, particularly in writing and printing paper, which has reached record highs of ₹90 per kg at retail. They have successfully passed on increased input cost to consumers, which can help paper companies sustain their revenue and profitability. 

Paper consumption on the rise 

India is among the fastest-growing markets for paper. According to the Indian Paper Manufacturers Association (IPMA), the domestic market’s size is pegged at over ₹80,000 crore currently. Further, the country's paper consumption is projected to grow by 6-7% per annum to reach 30 million tonnes by March 2027.  

Government initiatives 

Government initiatives like Make in India and the establishment of packaging parks have created a favorable environment for the packaging industry, promoting domestic production, employment, and innovation. 

Lifting of EU’s waste paper export ban

The EU's removal of the ban on waste paper exports to India in April 2023 has boosted access to raw materials for Indian paper manufacturers, leading to lower input costs and increased production capacity. 

Ban on single-use plastics 

The ban on single-use plastics has pushed e-commerce players to adopt eco-friendly paper-based packaging, which has driven the demand for paper products such as straws, cups, and bags.

On the whole, investors seem to be having an optimistic outlook on paper stocks. However, rising energy costs as well as stringent environmental laws could be a key challenge for the industry.

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