NIFTY50: 19,381 ▼ 144 (-0.7%)
SENSEX: 65,240 ▼ 542 (-0.8%)
Hello, friends!
If you’re a cheese lover, this news is going to break your heart. A truck carrying several cans of nacho cheese accidentally spilled them onto a highway in Arkansas, US. Really gives ‘say cheese’ a whole new meaning. Cleanup crews quickly cleared the cheese and commutes resumed. Meanwhile, you may want to grab some chips and dip, as we glance at the markets, which ended in the red, again. More on that later.
- Benchmark indices closed lower for the third consecutive day
- In all, 39 of the NIFTY50 stocks closed in the red
- India’s services PMI rose to 62.3 in July 2023 from 58.5 in June 2023
Among the NIFTY sectoral indices, Pharma (+1.0%) and Media (+0.9%) were the top gainers, while Realty (-1.7%) and Financial Services (-1.1%) were the top losers.
| Top gainers | Today's change |
| Adani Enterprises | 2,535 ▲ 61 (+2.4%) |
| Adani Ports | 777 ▲ 15 (+2.0%) |
| Eicher Motors | 3,383 ▲ 50 (+1.5%) |
| Top losers | Today's change |
| Titan | 2,906 ▼ 71.1 (-2.3%) |
| ONGC | 171 ▼ 4.1 (-2.3%) |
| Bajaj Finserv | 1,491 ▼ 35 (-2.3%) |
What’s trending
⭐ MRF zooms on strong Q1 results
MRF shares rose 3.7% and hit their 52-week high after the company reported a 376% year-on-year (YoY) increase in net profit at ₹588.7 crore for Q1FY24. There was also a 13% increase YoY in revenue from operations at ₹6,440 crore. The strong numbers were supported by a fall in the price of rubber, which is a key raw material for the industry.
⭐ IndiGo slips despite strong Q1 results
InterGlobe Aviation (IndiGo) reported a consolidated net profit of ₹3,091 crore for Q1FY24 compared to a loss of ₹1,064 crore in the year-ago period. Revenue from operations was up by 30% YoY to ₹16,683 crore. The airline operator is working on increasing its international presence and has a strong order book. Despite the strong results, the company’s shares fell by 4.6% today amid weakness in the broader market.
⭐ Zydus Lifesciences up on USFDA nod
Zydus Lifesciences shares rose 1.8% after the company received an approval from the United States Food and Drug Administration (USFDA) to manufacture and market Indomethacin suppositories, an arthritis drug. The USFDA also granted the pharma manufacturer a CGT (Competitive Generic Therapy) designation and a 180-day exclusivity to market the drug.
⭐ SBFC Finance IPO fully subscribed
The ₹1,025 crore public issue of SBFC Finance Limited was subscribed 1.89 times on Day 1, with the retail portion being subscribed over 2 times. SBFC Finance offers MSME loans and loans against gold to individuals and small business owners. The company has set the price band at ₹54 to ₹57 per share. The public issue is open for subscription till Monday, 7 August. To apply for this IPO, click here.
In Focus
Govt’s ethanol-blending programme running low on fuel
The government’s ethanol blending programme aims to reduce India’s dependency on imported crude. At the same time, it is expected to give a boost to the sugar industry, which is the primary producer of ethanol in India. After successfully achieving the 10% ethanol-blending target in 2022, the government had advanced the target of 20% ethanol blending from 2030 to 2025. However, this ambitious target is likely to be missed. But why? Let’s explore.
How does India get its ethanol supply?
As per estimates, more than 80% of the ethanol supply in India comes from sugarcane-based molasses, while remaining comes from grain-based sources, largely broken rice and maize. In order to achieve the 20% blending target, country needs about 10 billion litres of ethanol per year by 2025. However, in the current marketing year which ends in October 2023, around 3.5 billion litres of ethanol have been supplied.
Lower sugar production
According to the Indian Sugar Mills Association, sugar production in the 2023-24 crop season is expected to fall by 3.7% to 31.6 million tonnes due to uncertain weather in major producing states. A fall in sugar production impacts the production of molasses, which is used in making ethanol.
Grain-based production falls
Grain-based players are facing multiple challenges. For instance, the Food Corporation of India (FCI) has discontinued the supply of rice at concessional prices given to companies because of a country-wide shortage. Further, the switch to other alternatives like maize is also facing challenges due to high demand for maize from other industries. Besides, alternative raw materials increase production costs.
On the whole, shortage of raw materials is a major stumbling block for the ethanol-blending programme. The government will have to take some concrete steps to bring this programme back on track and achieve its ambitious target.
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