NIFTY50: 19,526 ▼ 207 (-1.0%)
SENSEX: 65,782 ▼ 676 (-1.0%)
Namaste, friends!
This piece of news may make you want to ‘Draw 4’ copies of your resume. Leading toy maker Mattel is looking for a "Chief Uno Player" at its office in New York City. The chosen candidate will be paid $4,444 per week to play the latest version of the classic card game. While a business card like this seems like a real life ‘Wild Card’, the markets played a ‘Reverse Card’ today and ended deep in the red. More on that later.
- Markets witnessed a major sell-off, amid weak global cues
- In all, 45 of the NIFTY50 stocks closed in the red
- Rating agency Fitch downgraded the US credit rating to AA+ from AAA, citing fiscal deterioration
All NIFTY sectoral indices closed lower today. PSU Bank (-2.6%), Metal (-2.0%) and Auto (-1.6%) were the top losers.
| Top gainers | Today's change |
| Divi’s Labs | 3,694 ▲ 55 (+1.5%) |
| Nestle India | 22,805 ▲ 211 (+0.9%) |
| HUL | 2,572 ▲ 20 (+0.8%) |
| Top losers | Today's change |
| Hero MotoCorp | 2,993 ▼ 108 (-3.4%) |
| Tata Steel | 119 ▼ 4 (-3.2%) |
| Tata Motors | 623 ▼ 20 (-3.2%) |
What’s trending
⭐ Ambuja Cements reports mixed Q1 results
Ambuja Cements shares were up by 0.3% after the company reported revenue growth of 18.4% year-on-year (YoY) to ₹4,729.7 crore in Q1FY24. Meanwhile, the company’s net profit declined 38% YoY to ₹645 crore Q1FY24, The Adani Group company has a positive outlook as the domestic consumer market and expects the industrial sector to see rapid growth.
⭐ Jio leads race in adding mobile subscribers
For the month of May, Reliance Jio continued to lead the race in subscriber additions, with Bharti Airtel coming a distant second. According to data released by the Telecom Regulatory Authority of India (Trai), Jio added 3 million subscribers during the month while Airtel added 1.3 million. Meanwhile, Vodafone Idea lost 2.8 million subscribers, marking its 26th consecutive month of customer loss. Shares of Bharti Airtel and Vodafone Idea fell 1.85 and 4.2%, respectively.
⭐ Godrej Properties posts robust Q1 results
Godrej Properties reported net profit of ₹124.9 crore for Q1FY24, up 174% from the same quarter last year. The company’s revenue from operations rose 282.6% YoY to ₹936 crore. Its sale bookings declined 11% YoY to ₹2,254 crore. The management said despite a muted start to the year from a bookings perspective, it witnessed strong traction in deliveries, business development, cash collections, and earnings in the quarter. The stock declined 2.1% today amid weakness in the broader market.
⭐ Tata Power signs two agreements with MSEDCL
Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power, signed two power purchase agreements (PPAs) with Maharashtra State Electricity Distribution Company Limited (MSEDCL) for commissioning two solar power projects with a combined capacity of 350 MW. The projects are located in Maharashtra and are expected to be commissioned by mid 2025. Shares of Tata Power declined by nearly 3.5% today.
In Focus
US credit rating downgrade jolts the markets
The Indian market witnessed a sharp sell-off today with benchmark SENSEX and NIFTY50 indices declining over 1%. This fall came amid subdued global sentiments as European and Asian markets plummeted after Fitch Ratings downgraded the US sovereign credit rating. Wondering what's a credit rating and how it impacts markets? Keep reading.
Credit rating and its importance
Credit ratings denote the creditworthiness of an individual, company, or government entity, which is typically represented by a letter grade or a numerical score. These ratings are assigned by credit rating agencies after evaluating multiple quantitative and qualitative factors.
Credit ratings help assess risk of default by companies or the government. A rating downgrade means the financial situation has worsened, and entities should take corrective actions to improve their creditworthiness. For investors, it acts as a warning sign before making an investment decision. Meanwhile, a good credit rating for the government indicates greater financial stability within the country’s economy.
Why was the US credit rating downgraded?
In the case of the United States, Fitch Ratings has downgraded its credit rating to AA+ from AAA. This move came after the US faced major political battles over the nation's borrowing and repeated standoffs over raising the debt ceiling in the recent past.
Following this development, major European and Asian markets reacted negatively. Indian markets saw major fall with all sectoral indices closing in the red. Banking stocks led the decline with SBI, Axis Bank and Kotak Bank falling more than 1.5% each.
Experts believe the US rating downgrade will have minimal impact on the Indian markets as another major rating agency S&P had already downgraded the US to AA+ in 2011. Hence, this time the impact could be short-lived and other key factors like FII inflows, RBI policy meeting and the ongoing earnings season could drive market sentiments in the days ahead.
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