Tepid Thursday

Nifty50: 16,818 ▼ 40 (-0.2%)
Sensex: 56,409 ▼ 188 (-0.3%)

Hola, folks!

With markets falling relentlessly, investors might want to find reasons to cheer against all odds. Just like the group of women, who played garba in a Mumbai local train despite the rush-hour crowd! Kudos to their festive spirit.

• Despite a strong opening, markets slipped into negative territory and closed lower for the seventh consecutive day.
• In all, 23 of the Nifty50 stocks closed in the red.
• Investors are looking forward to the RBI’s interest rate decision to be announced tomorrow.

Among the Nifty sectoral indices, Pharma (+1.3%) and Media (+1.2%) were the top gainers, while IT (-0.9%) and Financial Services (-0.5%) were the top losers.

What’s trending

⭐ Adani Green opens world’s largest hybrid plant

ADANIGREEN (NSE): 1,989 ▼ 62 (-3.0%)

Adani Green Energy has commissioned the world’s largest co-located wind-solar hybrid power plant at Jaisalmer, Rajasthan, with a capacity of 600 MW. With this, the company's total operational renewable capacity has now increased to 6.7 GW. The plant will not only lower the intermittency of renewable energy power, but also help the country in optimal utilisation of the transmission network.

⭐ Blue Dart hikes shipment prices 

BLUEDART (NSE): 8,704 ▲ 122 (+1.4%)

Logistics solutions provider Blue Dart has announced a hike in its average shipment price. Effective from 1 January 2023, the company will increase prices by 9.6%, depending on the shipment size. The price rise is mainly due to inflation, currency fluctuations, fuel cost rise and growing regulatory costs.

⭐ Ramco Cements expands its capacity

RAMCOCEM (NSE): 745 ▲ 3.2 (+0.4%)

Ramco Cements has commissioned its fifth cement plant in Andhra Pradesh. The new plant has been set up with a total investment of ₹3,000 crore and has clinkerisation capacity of 2.25 million tonnes per annum. The plant also has a thermal power plant capacity of 18 MW and railway siding of 34 km to provide flexibility in logistics, which will be commissioned in FY24.

⭐ Nifty50 rebalancing to be effective 30 Sept

ADANIENT (NSE): 3,456 ▼ 92 (-2.6%)

NSE’s semi-annual rejig will come into effect from Friday. Adani Enterprises will join the benchmark Nifty50 index, replacing Shree Cement. As a result of this change, Adani Enterprises shares could see additional investment inflows of upto $189 million, according to market experts. Newer entrants to the Nifty50 receive fresh investments as domestic passive funds like ETFs and index funds try to replicate their portfolio in line with the stocks in the index.

In Focus

Palm oil slumps, but biscuits won’t get cheaper

Prices of palm oil have slumped to their lowest levels since January 2021. One might think this would lead to cheaper FMCG products from biscuits to cosmetics. But FMCG companies aren’t ready to pass on the benefits yet. Want to know why? Keep reading.

Palm oil, which is the most consumed cooking oil globally, accounts for over 50% of India’s total edible oil imports. After Indonesia lifted its export ban and restored the palm oil supply, prices have seen a massive decline. After peaking in April (when the export ban came into effect), prices have declined by nearly 54%. 

Despite this, FMCG firms are reluctant to lower consumer prices due to high costs of raw materials like wheat and sugar, which have increased by 10-15% over the past couple of months. Also, high freight costs are putting the profitability of FMCG companies under stress. 

Further, as per market experts, FMCG companies are sitting on palm oil inventory purchased at higher costs, which puts pressure on margins. As a result, companies are keeping the product rates unchanged. 

Hence, if you are an investor in FMCG stocks, you can expect something to cheer about in the near future. However, as a consumer you may have to shell out more at least for now.

Ready-made Option Strategies on Upstox

Options offer traders the potential to make a profit whether the markets are moving up, down or sideways. However, options are complex instruments, and option strategies can be even more complicated. If not used in a disciplined way, they could lead to severe capital losses.

To solve such problems and to make options trading easier, Upstox has introduced Ready-made Option Strategies, which allow traders to:

• Choose from pre-curated option strategies
• Know profit probability, maximum profit and loss, and funds required for each strategy
• Trade with unique one-click entry and exit orders

Click here to know more about Ready-made Option Strategies.

Good to know

What is index rebalancing?

Rebalancing is a periodic exercise whereby a stock exchange adjusts the stocks in an index to reflect market developments. This may entail the inclusion or exclusion of companies based on free float market cap, which is a measure of a company’s outstanding shares multiplied by its share prices. Companies that meet the criteria stay in the index, and companies that fall short are removed from the index. The rebalancing of the Nifty 50 index happens in March and September every year.

Click here to join us on Telegram for trading and investment-related videos, daily market updates, details on upcoming IPOs and more.