Nifty50: 15,810 ▼ 24 (-0.1%)
Sensex: 53,134 ▼ 100 (-0.1%)
Hello, people!
Do you know about a hotel in Ibiza where guests can stay for free? The only catch is they need to stay in a room that has see-through glass walls!
If Ibiza sounds too far, there's some hope for you. There's a gurudwara in Punjab, where devotees offer toy planes in hopes to travel abroad someday. Anyway, what would you offer to see the markets going up someday?
- The markets opened strongly and crossed the 16,000 mark, but then erased all gains and closed in the red.
- In all, 28 of the Nifty50 stocks closed lower.
- Meanwhile, the rupee closed at a fresh low at 79.36 against the US dollar as compared to Monday’s closing of 78.95.
Among the Nifty sectoral indices, Metal (+0.3%) and Oil and Gas (+0.1%) saw minor gains, while Media (-0.9%) and IT (-0.7%) witnessed losses.
| Top gainers | Today's change |
| Shree Cement | 19,625 ▲ 332 (+1.7%) |
| Power Grid | 213 ▲ 3.0 (+1.4%) |
| Bajaj Finserv | 11,529 ▲ 140 (+1.2%) |
| Top losers | Today's change |
| HDFC Life | 563 ▼ 10 (-1.8%) |
| ITC | 286 ▼ 5.1 (-1.7%) |
| Wipro | 414 ▼ 6.1 (-1.4%) |
What’s trending
⭐ Vehicle sales rise in June 🚗
MARUTI (NSE): 8,339 ▼ 104 (-1.2%), TATAMOTORS (NSE): 412 ▲ 3.9 (+0.9%)
Federation of Automobile Dealers Associations (FADA) has released vehicle sales data for June 2022. Overall the total vehicle sales across all segments was up by 27% compared to last year. This was mainly due to robust demand and the low-base effect of last year. In the commercial vehicle segment, total sales stood at 67,696, up 89% year-on-year, indicating a revival in economic activity.
⭐ Hotel occupancy rates surpass pre-Covid levels 🏨
INDHOTEL (NSE): 236 ▲ 3.9 (+1.6%), LEMONTREE (NSE): 64 ▲ 0.05 (+0.08%)
Shares of listed hotel companies such as Indian Hotels, Lemon Tree, Chalet Hotels are up 28% to 52% year-to-date. The industry is witnessing revival in consumer demand and business turnaround after the pandemic. The occupancy rate in the hospitality sector has reached pre-pandemic levels, supported by a rise in leisure travel as well as corporate events and conferences.
⭐ China’s Covid restrictions hit copper prices 😰
POLYCAB (NSE): 2,176 ▲ 26 (+1.2%), HAVELLS (NSE): 1,159 ▲ 25.9 (+2.2%)
Fresh Covid restrictions in China have impacted the manufacturing activity in the country. As a result, copper prices have hit a 17-month low, with copper inventories rising over 20% last week. In June, global manufacturing was impacted owing to higher commodity prices with geopolitical uncertainties adding woes to supply-chain disruption. Meanwhile, shares of electrical equipment makers like Polycab and Havells were upbeat as these companies will benefit from a drop in copper prices.
⭐ KEC International eyeing revenue hike 💪
KEC (NSE): 393 ▼ 3.8 (-0.9%)
KEC International is aiming to double its revenue this year through their civil business. Company's total revenue increased 5% to ₹13,700 crore in FY22, led by growth in the civil, railways and cables businesses. Civil business contributed ₹1,900 crore. The management hopes to hit ₹4,000 crore in FY23. The firm has 290 projects in pipeline in India and abroad, with orders of over ₹8,000 crore for the civil business.
⭐ Euro plunges to two-decade low 😱
The euro has declined to its lowest level in two decades against the US dollar to hit $1.0281. This comes on the back of an increase in European gas prices, amid concerns about a possible recession. The currency fell as much as 0.8% today to its weakest level since December 2002.
In Focus
Global inflation: A wildfire
Inflation has been raging across the globe. Commodity prices remain at elevated levels, and some developed economies, like the US and the UK, have seen inflation touch 40-year highs! But what's really happening? Let's explain.
While the pandemic seems to be over, the world is still feeling the after-effects. There's a lot of pent-up demand and interest rates are still lower than pre-pandemic levels. This has meant more money with the people and an appetite to spend, leading to a rise in prices. But that's only one side of it. The supply is unable to catch up to demand, with supply-chain snags that continue to remain a worry.
Against this backdrop, the inflation across the globe has been on fire. In Turkey, for example, inflation surged to 78.6% in June! For perspective, India's consumer inflation was at 7.04% in May.
It's not only the pandemic, though. The Russia-Ukraine war has led to a lot of uncertainty. Both nations are suppliers of key commodities. Supply disruptions from these countries have led to a sharp rise in prices. Further, crude oil prices are around 8-year highs.
In response, central banks across the world have now stepped up efforts to cool down the roaring inflation by raising interest rates. But it's going to be a balancing act. They'll need to bring down inflation, without triggering an economic slowdown.
As for the markets, the rising inflation has sparked a sell-off. There's been no relief yet, but expectations are rife that commodity prices have peaked.
But this may be no reason to celebrate, as there are fears that rising interest rates may lead to a recession, and the geopolitical tensions are far from over.
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Good to know
What is rollover in F&O?
All futures and options (F&O) contracts have an expiry date and are closed on or before the expiry. However, if traders believe that the stock or an index will continue to move higher, they can “roll over” their positions to contracts with the next month’s expiry date.Simply put, when traders close their positions in the current month contract and take the same positions in the next month’s contract, it is known as a rollover. For example, if a futures contract has an expiry date of 30 June 2022, and you want to hold it till 30 July, you will have to exit your position and take a new position for July. This process is referred to as rolling over a position.
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