Rupee tumbles, markets stumble

Nifty50: 16,240 ▼ 61 (-0.3%)
Sensex: 54,364 ▼ 105 (-0.1%)

Hello, folks

In case you didn’t know already, Whatsapp is rolling out message reactions. If we could react to the markets the past few days, our emoji would look like this: 😢

And while the markets have a see-saw ride, the rupee continues to slide. How does this affect you? We’ll tell you in a bit.

• Amid high volatility, markets swung between gains and losses, and closed lower for the third straight session. However, the intensity of the fall has reduced.
• A bounceback was seen in the Asian indices, and European markets were trading positive. 
• Of the Nifty50 stocks, 34 closed in the red.

Among the Nifty sectoral indices, Bank (+0.6%) and Financial Service (+0.5%) saw the most gains, while Metal (-5.2%) and Realty (-2.9%) were the top losers.

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What’s trending

⭐ JSW Group’s concrete plans 🧱

Steel-to-energy conglomerate JSW Group is reportedly looking to make a $7 billion bid for Ambuja Cement and ACC. The two cement companies have been put on sale by their parent Holcim India as it seeks to divest its international assets. JSW will offer $4.5 billion in its own shares and the remaining from undisclosed private equity partners.

⭐The cookie crumbles 🍪
Love your chai with biscuits? It might not be a very “good day” for you as Britannia, HUL and other FMCG companies are looking to raise prices by 5-20%. While the scorching heat is affecting wheat production, the geopolitical crisis has added to the supply disruptions. Britannia, which has already hiked its prices by 10% this year, predicts an additional 10% hike if wheat prices stay inflated. 

⭐Ramkrishna forging ahead ⛟
Shares of forged components manufacturer Ramkrishna Forgings rose 1.3% intraday after bagging a multi-year export order from a US-based trailer manufacturer. The delivery of the ₹105 crore per annum project will begin next year. In Q4, the firm reported a 142.9% growth in standalone net profit to ₹86.6 crore. 

 ⭐ GNFC’s bumper harvest 🌾

Gujarat Narmada Valley Fertilizers & Chemicals rose 8.5% after reporting a stellar quarter. The company's fertiliser segment witnessed a 54% year-on-year growth in Q4, while the chemicals business grew by 63% in the same period. Owing to this, the net profit doubled to ₹643 crore.

⭐ Passengers check in 🛫
Crowds are lining up at the airports with the drop in Covid cases and the beginning of summer vacations. In April 2022, domestic air passenger traffic surged to an estimated 1.05 crore, 83% higher than April 2021, as per data from research agency ICRA. 

⭐ Rainbow fades 🌈
Amid volatile markets and negative sentiments, shares of Rainbow Children's Medicare listed at ₹506, 6% lower than the issue price of ₹542. The public issue had received a strong response and was subscribed over 12 times. 

In Focus

5 ways the rupee fall could impact you

Looks like the only thing that’s weaker than the rupee is Mumbai Indians’ form in the IPL. The rupee has dropped to a new low of 77.46 against the dollar. That’s a drop of 4% since the start of 2022.

If you think 4% is a small change, think again. Here's how a weak rupee could affect you.

#1 Imports get expensive

This means higher prices for consumers. Everything from edible oils to cars and appliances could get costlier as a result of a weaker rupee.

#2 Crude + Dollar = Double Trouble

India is a large crude oil importer. Crude oil is already over the $100 dollar a barrel mark. Add to that a stronger dollar, and our fuel bills swell further.

#3 Inflation spikes

What does rising consumer product prices and crude oil lead to? You guessed it, inflation. And this, at a time when inflation is already at a 17-month high.

#4 Interest rates rise

Your EMIs could be impacted too! Inflation triggers the RBI to raise interest rates linked to your auto, home and other loans. 

#5 Stocks react

A falling rupee is positive for export-oriented sectors like IT and pharmaceuticals. Meanwhile, importers like oil marketing firms and steel companies could see an adverse impact.   

IPO corner

It’s IPOs galore on D-street. On Day 1, the public issue of retail wealth management services company Prudent Corporate was subscribed more than 30%. Click here to apply for this IPO. 

Meanwhile, two more companies—Delhivery and Venus Pipes & Tubes—will be launching their respective IPOs tomorrow. Click here to pre-apply for the Delhivery IPO on Upstox.

Good to know

What is a listing date?

After an IPO comes to a close and shares are allotted, the company’s shares are officially listed on the stock market. The day the shares are open to trading on the secondary market is called the listing date. This date is important as investors who missed out on the IPO can finally buy it on the stock market. Further, investors who were allotted shares in the IPO may look to make listing gains, if any, by selling their shares. And in case you’re wondering, the listing date for the LIC IPO is 17 May 2022.

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